Whistler Inc. (Sacramento, CA) CEO Kevin Garner was snared in an FBI sting operation and arrested in New York City on two charges of conspiring to launder money. The FBI says an undercover agent, posing as a member of a Colombian drug cartel, approached Garner with an offer to conduct "financial transactions" involving proceeds from the sale and distribution of cocaine. Although Garner has not been convicted of anything, he was one of 58 people nabbed by the FBI in two related stings.
Earlier this year, Whistler bought solar-energy business American Energy Power Systems Inc. (Rancho Cordova, CA) and provided $600,000 to Anuvu Inc. (Sacramento, CA) in exchange for non-exclusive rights to fuel-cell patents. Anuvu President Rex Hodge claims there's no connection between Anuvu's deal with Whistler and the alleged transactions that led to Garner's arrest, and that Whistler still owes Anuvu 15 percent of Whistler's stock under the terms of a binding agreement signed by the companies.