Ethanol Blog
Florida Man Pleads Guilty to $7 Million Fraudulent Biofuels Tax Credits Scheme
LINCOLN, Neb. (DTN) -- A Florida man pleaded guilty on Nov. 8 to conspiracy to commit wire fraud and filing false claims in a scheme that generated more than $7 million in fraudulent renewable identification numbers, or RINS, and sought more than $6 million in fraudulent tax credits for biodiesel that wasn't produced.
According to court documents from the U.S. District Court for the District of Southern Florida, Royce Gillham was the general manager of a biofuel company based in Fort Pierce, Florida.
The company produced and sold renewable fuel and fuel credits and claimed to turn various feedstocks into biodiesel.
When reporting the number of gallons produced to the IRS and the U.S. Environmental Protection Agency, Gillham and his employer "vastly overstated" their production volume in an effort to generate more credits, according to a news release from the U.S. Department of Justice.
"When auditors sought more information from the company, Gillham and his co-conspirators provided false information about their fuel production and customers," the DOJ said.
A sentencing date has not yet been scheduled for Gillham who faces a maximum penalty of five years in prison and a $250,000 fine for the conspiracy count.
A federal district court judge will determine whether to accept the plea agreement after considering sentencing guidelines and other statutory factors.
According to court documents, Gillham's company filed with the IRS forms requesting tax payments for $2.3 million in March 2018, as well as for $5.9 million and $1.5 million in February 2020.
Between Feb. 17, 2017, and April 19, 2019, Gillham and an employee of his company generated 1,574 batches of RINS and claimed to have produced 9.7 million gallons of biodiesel, according to court documents.
Then between April 19, 2017, and April 16, 2019, Gillham and an employee sold RINS 52 times totaling 14.5 million RINS.
Todd Neeley can be reached at todd.neeley@dtn.com
Follow him on social platform X @DTNeeley
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