Archive

October 11, 2018

Tesla Energy Solutions (fka Solar City) and its accounting firm, Novogradac & Company LLP, have agreed to pay a combined $13 million to settle claims that it defrauded the Oregon Department of Energy (ODOE) in seeking to receive a higher tax credit for commercial solar projects built in the state. According to Oregon DOJ's press release, SolarCity submitted fraudulent applications to ODOE certifying that its solar projects had cost it $36.7 million. Novogradac then submitted fraudulent reports certifying the same, which allowed SolarCity to receive more than $10 million in tax credits, and which it then used to fund 14 other solar projects, including 6 with the Oregon University System. However, subsequent investigation revealed that the actual cost had been inflated by more than 100%. OR AG

October 5, 2018

Following a court trial, a federal court in Utah has ordered that RaPower-3 LLC and International Automated Systems, Inc. stop all promotion and marketing and disgorge $50 million collected in an abusive tax scheme involving false tax deductions and solar energy credits.  The companies and their principals marketed what they claimed was technology that could be used in the production of solar energy and which, they further claimed, entitled the purchasers to take certain tax deductions and solar energy tax credits.  In fact, however, the technology was phony and defendants knew that its purchasers would not be entitled to the tax deductions and credits.  DOJ

October 4, 2018

David Tielle of Harrisburg, Pennsylvania, pleaded guilty to tax fraud for his role in the submission of over $4 million in fraudulent claims for tax refunds under the Biodiesel Mixture Tax Credit by Keystone Biofuels Inc.  Tielle inflated fuel amounts reported to the IRS, claiming tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Tielle created false books and records and engaged in a series of sham financial transactions. USAO MDPA; DOJ.

October 3, 2018

Blessings, Inc., of Tucson, Arizona, and two associated individuals, were sentenced following guilty pleas to pay over $1.2 million in fines, forfeiture and restitution for the illegal trafficking in sea cucumber from 2010-2012. Defendants admitted that they obtained the sea cucumber in Mexico in violation of Mexican law, imported the sea cucumber into the United States with false documentation, and illegally exported the sea cucumber to Asia.  Portions of the fines will be deposited in the Lacey Act Rewards Fund and the Magnuson Stevens Fishery Conservation and Management Act Fund. USAO S.D. Cal.

September 27, 2018

NGL Crude Logistics LLC, formerly known as Gavilon, Inc., has agreed to pay a $25 million civil penalty to the Environmental Protection Agency (EPA) to resolve allegations of RIN fraud through violations of the EPA's Renewable Fuel Standard (RFS) program. In 2011, NGL bought millions of gallons of biodiesel, which came with about 36 million RINS—or Renewable Identification Numbers, which are generated when certain renewable fuels are produced, and which are used for tracking purposes. According to the complaint, NGL sold off most of the original RINs, then sold the biodiesel as unprocessed feedstock to another company, Western Dubuque. After Western Dubuque reprocessed the biodiesel, it sold the fuel back to NGL with another set of RINs, which NGL then sold off again. The fraud was eventually revealed through a tip from other program participants. DOJ

August 24, 2018

Executives of Utah-based biodiesel company Washakie Renewable Energy, and another individual associated with NOIL Energy Group in California, were indicted for falsely claiming over $500 million in renewable fuel tax credits. The individuals allegedly created false production records and other paperwork to make it appear that fuel transactions that qualified for the tax credit were occurring.  The indictment also included allegations of money laundering.  DOJ

July 24, 2018

Attorney General Barbara Underwood announced guilty pleas by Albany Environmental Consultants, LLC ("AEC"), its owner Ronda Dolan, and a project manager Brian McLaren for defrauding customers in NY by posing as a licensed asbestos testing company. AEC's license to test for asbestos had expired in 2014 but it used the name of another company to charge customers $40,000 overall for asbestos testing services just to have the work later redone by a licensed testing company. NY AG

July 6, 2018

North American Power Group Limited, along with its owner Michael Ruffatto, have agreed to pay $14.4 million as a result of allegations that they submitted false claims under an agreement with the DOE to carry out data collection and carbon sequestration projects at a Wyoming energy site.  Rather than seek reimbursement for work done, as they claimed, the defendants had submitted invoices reflecting personal expenses like travel, jewelry, and car payments.  Ruffatto was also sentenced to 18 months in prison for his role in the scheme.  DOJ; USAO WDPA

June 18, 2018

Gina Holley, a Tennessee-based tax preparer, pleaded guilty to filing false claims with the IRS. According to the charges, Holley improperly claimed that tax payers were entitled to fuel tax credits, resulting in a loss of over $400k of tax revenue. USAO Western District of Tennessee

June 5, 2018

Great Western Drilling Company agreed to pay $600,000 to settle allegations it violated the False Claims Act by underreporting and underpaying federal royalties due on natural gas extracted from New Mexico sites the company leased from the federal government. USAO DCO