Federal investigation into Mammoth subsidiary Cobra Acquisitions’ work on Puerto Rico continues, filings show

Jul. 17--Mammoth Energy Services' subsidiary Cobra Acquisitions, the Puerto Rico Electric Power Authority and the U.S. Federal Emergency Management Agency are targets of an ongoing criminal investigation examining how the company obtained contracts worth more than $1.8 billion to help restore the island's energy grid, filings in a related case show.

In those filings, investigators state they have made findings of probable cause related to conduct they assert violates criminal statues involving the defrauding of the United States, conspiracy and bribery of public officials.

The findings came to light in June when the subsidiary's ex-CEO, Donald Keith Ellison, filed a suit in a northern California federal court seeking to recover millions of dollars in funds, securities and property belonging to him that were seized in late April by the U.S. government.

Ellison demanded those assets be returned to him, arguing that affidavits and other supporting documentation for those seizures sealed by federal judge in Puerto Rico prevented him from challenging what happened.

Short of that, his petition seeks at least to get those documents unsealed.

"In that way, Ellison will at least have rudimentary notice of the charges against him and be able to test the premise for the seizure," his petition reads.

U.S. attorneys are working to have Ellison's case moved to federal court in Puerto Rico.

"There is an ongoing criminal investigation involving FEMA's PA (Public Assistance) grant program, the Puerto Rico Electric Power Authority and contracts awarded to Cobra," U.S. attorneys stated in a brief filed in that case.

Ellison, a decorated Army Ranger who served in Somalia, Bosnia, Afghanistan and Iraq, was CEO of Cobra from January 2017 until June.

Before that, he served as a CEO, executive vice president and vice president at other companies in the utility industry during a civilian career that spanned 18 years.

Under his leadership, Mammoth's Cobra secured a series of contracts in 2017 and 2018 worth more than $1.8 billion with the Puerto Rico Electric Power Authority to repair storm damage caused by Hurricane Maria to the island's electrical infrastructure.

Mammoth Energy Services officials confirmed Tuesday they are aware of an investigation into Ellison, adding they are "cooperating fully" with authorities.

That differs from their reaction in June, when they declined to confirm whether Ellison was being investigated after a story broke that federal investigators were examining contracts the island's power authority had issued to companies involved in rebuilding the grid.

The Wall Street Journal reported then that Ahsha Tribble, a high-ranking FEMA official who previously obtained a doctorate in meteorology from the University of Oklahoma, had been accused of directing business to Cobra.

While documents prompting the seizures remain sealed, Ellison stated in a declaration he made in his case that he understands from others that the government may be investigating whether he gave Tribble inappropriate gifts that could have included theater and airplane tickets, rides on company helicopters, jewelry, hotel rooms or other things of value.

Ellison declared agents hadn't asked him whether there was evidence that Tribble, in fact, paid "for certain items of the type they have inquired about."

He did note in the declaration that Cobra had, at one point, provided Tribble with a helicopter ride and treatment related to a medical emergency she had experienced on the island.

But he stated in the declaration that Tribble had reimbursed the company for its expenses related to that event.

In other occasions where government officials would meet Cobra employees periodically to discuss ongoing work and meals were involved, Ellison stated he remembered that Cobra only paid for its employees' meals.

"I do not believe the government could be in possession of reliable information about me or Cobra's dealings in Puerto Rico because it has never obtained the necessary documentation from which an informed judgement could be reached," he stated.

In an affidavit filed made by a federal agent as part of the government's request to have the case litigated in Puerto Rico, the government confirmed it seized about $71,000 from Ellison's checking account, about $276,500 from Ellison's savings account, about $100,306 from a joint savings account Ellison had, plus $1 million from an investment account Ellison had.

Ellison's suit challenges the amount seized from the investment account, stating that federal authorities actually seized about $4.42 million from that one account, alone.

Additionally, the federal agent stated the government seized a catamaran Ellison had acquired for $666,640, as well as a pickup he had spent about $30,000 to acquire.

Previously, Mammoth stated its agreements to restore the grid in Puerto Rico were negotiated with that island nation's authorities and that its contracts were proper and were reviewed both by government and independent entities.

On Tuesday, Mammoth's statement declared its executives remain proud of the repair and replacement work Cobra completed to help Puerto Rico restore its electrical system "in an extremely challenging environment."

It reiterated past stories have reported an independent evaluation by the Rand Corp. showed that Cobra's rates were reasonable, considering the "situational uncertainty that prevailed" after the hurricane struck the island.

"We were one of very few companies that answered the call to help the people of Puerto Rico in their time of need," its statement reads.

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