U.S. charges 6 people, 3 firms with $100 million biofuels fraud
Source: Reuters
U.S. charges 6 people, 3 firms with $100 million biofuels fraud
By Carey Gillam
Wed Sep 18, 2013 5:55pm EDT
(Reuters) - Six people and three companies, including an Indiana operation claiming to make biofuel from chicken fat and vegetable oils, were charged with defrauding investors and consumers out of more than $100 million, prosecutors in Indianapolis said on Wednesday.
The indictment alleged four men operating E-Biofuels of Middletown, Indiana and two others with New Jersey-based Caravan Trading Co and CIMA Green conspired to exploit a government incentive program that offers tax credits for biofuel use.
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The scheme began in July 2009 and continued until May 2012, the prosecutor's office said, with the defendants fraudulently selling more than 35 million gallons of biofuel they claimed to be pure biodiesel, called 'B100,' but actually selling a version blended with petroleum known as 'B99,' that had less value.
B100 comes with "Renewable Identification Numbers" (RINs) that can be used to claim tax credits, and is worth roughly $2 more per gallon than B99.
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Read more: http://www.reuters.com/article/2013/09/18/us-usa-biofuels-fraud-idUSBRE98H16W20130918