Tennessee – A Tennessee man has admitted his role in a sweeping investment scheme that promised clean energy innovation but instead diverted millions of dollars for personal gain. The guilty pleas mark a major development in an investigation into a project that claimed it would use solar power to produce hydrogen fuel.
Guilty Pleads Entered in Chattanooga Federal Court
On February 11, 2026, Jonathan D. Frost, 42, of Soddy Daisy, Tennessee, appeared at the federal courthouse in downtown Chattanooga and pleaded guilty to three felony charges. Appearing before United States Magistrate Judge Christopher H. Steger, Frost waived his right to a grand jury indictment and entered guilty pleas to conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to defraud the United States.
Court records show Frost participated in a scheme that solicited investments for the construction and operation of a facility that would use solar energy to extract hydrogen gas from water. Investors were led to believe their money would fund a forward-looking energy project. Instead, the funds were never used to build a hydrogen plant. According to the plea agreement, the money was converted to the personal use of Frost and his co-conspirators.
As part of the agreement, Frost accepted responsibility for a monetary judgment of no less than $70 million, reflecting the scale of financial losses tied to the fraudulent operation.
Potential Sentence and Next Court Steps
The plea agreement does not include any agreement regarding sentencing. The final sentence will be determined by the court. Frost faces a maximum combined penalty of up to 45 years in federal prison.
A sentencing hearing before Chief United States District Judge Travis R. McDonough is currently scheduled for August 7, 2026. At that hearing, the court will consider federal sentencing guidelines and other statutory factors before determining Frost’s punishment.
Investigation and Victim Assistance Efforts
The case is being prosecuted by the United States Attorney’s Office for the Eastern District of Tennessee and was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Frank Dale, Christopher Poole, and Frank Clark are representing the United States in the prosecution.
Authorities are continuing outreach efforts to identify and assist victims of the scheme. The Eastern District of Tennessee Victim Witness Program has created an online resource to provide notifications and updates to those affected. In addition, the FBI is urging anyone who invested money in the hydrogen project to come forward and contact [email protected].
The case underscores the risks investors face when presented with promising technology ventures that lack transparency. Prosecutors allege the scheme misused investor trust and federal systems, transforming what was marketed as an innovative clean energy effort into a large-scale financial fraud.
