Tennessee – A Tennessee man admitted in federal court that a promising clean-energy venture was nothing more than a massive financial deception, leaving investors without the hydrogen facility they were promised and millions of dollars unaccounted for.
On February 11, 2026, Jonathan D. Frost, 42, of Soddy Daisy, Tennessee, appeared at the federal courthouse in downtown Chattanooga and entered guilty pleas to three felony counts. Frost stood before United States Magistrate Judge Christopher H. Steger, waived his right to indictment by a grand jury, and pleaded guilty to conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to defraud the United States.
Investment Scheme Built on False Promises
According to facts outlined in the written plea agreement, Frost took part in a scheme that solicited investor funds for what was described as an innovative energy project. The venture claimed it would construct and operate a facility using solar power to extract hydrogen gas from water — a process promoted as a forward-looking solution in the clean energy sector.
Investors were led to believe their money would support development and operation of this hydrogen production plant. Instead, authorities said the funds raised were never used to build the facility. Prosecutors stated the money was diverted for the personal use of Frost and his co-conspirators.
As part of the plea agreement, Frost consented to a monetary judgment of no less than $70,000,000, reflecting the scale of the financial losses connected to the scheme.
Sentencing Still Ahead
Court filings indicate there is no agreement in place regarding Frost’s sentence. The final penalty will be determined by the judge at the time of sentencing. A sentencing hearing before Chief United States District Judge Travis R. McDonough is scheduled for August 7, 2026. Frost faces a potential maximum sentence of up to 45 years in federal prison if the penalties are imposed consecutively.
The case is being prosecuted by the United States Attorney’s Office for the Eastern District of Tennessee following an investigation conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Frank Dale, Christopher Poole, and Frank Clark are representing the United States in the proceedings.
Authorities are continuing efforts to identify and support victims impacted by the fraudulent investment scheme. The Eastern District of Tennessee Victim Witness Program has created a webpage to provide notifications and updates for victims. In addition, the FBI is asking anyone who invested money in the hydrogen project to come forward and contact [email protected].
The guilty pleas mark a major development in a case that underscores the risks investors face when fraud schemes disguise themselves as cutting-edge innovation. Federal officials say the outcome reinforces the commitment of law enforcement to pursue financial crimes that exploit trust and target emerging industries.
