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Tax Credit and Deduction Fraud

This archive displays posts tagged as relevant to tax credit and deduction fraud. You may also be interested in the following pages:

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October 10, 2020

The owners of Keystone Biofuels Inc., Ben Wootton and Race Miner, were sentenced to approximately 5.5 years imprisonment each and they and Keystone were ordered to pay restitution and fines totaling $9.23 million to the IRS and Pennsylvania Department of Environmental Protection following their convictions at trial for charges relating to their renewable fuels scam.  The defendants falsely claimed that they were able to produce biodiesel that permitted them to create renewable fuel credits known as RINs; then then sold both the non-qualifying fuel and the fraudulently-created RINs.  In addition, Keystone claimed federal tax refunds under the IRS Biofuel Mixture Credit program, creating false books and records to conceal the non-qualifying, and in some cases non-existent, fuel.  DOJ

August 6, 2020

Following his conviction at trial on charges to defraud the EPA and IRS, David Dunham, who had ownership interests in Smarter Fuel LLC and Greenworks Holdings LLC, was sentenced to seven years in prison and ordered to pay restitution of $10.21 million.  Dunham fraudulently applied for, received, and sold over $50 million in EPA, IRA, and USDA credits and payments for producing biofuels that he, in fact, did not produce and, in many instances, had never possessed in the first place.  DOJ

April 29, 2020

Ecotrust Forest Management and its non-profit affiliate, Ecotrust, will pay $4.4 million to resolve claims under the Oregon False Claims Act that they fraudulently claimed entitlement to New Market Tax Credits, which are meant to provide incentives for economic development in disadvantaged areas of the state, on their financing of two development projects, the Rough & Ready Sawmill in Cave Junction and the purchase of forestland in Desolation Creek.  The companies allegedly overstated their expenses on the projects in order to secure larger tax credits.  OR

March 2, 2020

A man in Colorado who was part of a tax fraud scheme involving renewable fuel credits has been sentenced to nearly 7 years in prison and ordered to pay $7.2 million in restitution.  Along with co-conspirators, Matthew Taylor created a fake company, Shintan Inc., that they then used to seek out and obtain over $7.2 million in tax credits for renewable fuel that Shintan never actually produced.  The fraud ran from 2010 to 2013 and personally netted Taylor about $4.5 million.  DOJ

May 1, 2019

A Pennsylvania man has been convicted of defrauding the EPA and IRS of $50 million over the course of five years.  Together with his co-defendant, Ralph Tomasso, David Dunham Jr. used their companies to illegally profit from the EPA’s Renewable Fuel Standard (RFS) Program by fraudulently applying for, receiving, and selling credits to renewable biofuels that they didn’t actually sell or never actually possessed. Now, the government is seeking forfeiture of $1.7 million in fraudulently obtained revenue.  DOJ (August 6, 2020 sentencing)

March 22, 2019

A man in Colorado plead guilty to his role in a $7.2 million tax credit fraud scheme that ran from 2010 to 2013. To take advantage of a federal program that encourages the production and use of renewable fuels, Matthew Taylor and co-conspirators created a fake fuel production company, Shintan Inc., and filed false claims for tax credits with the IRS, even though their company produced no qualifying fuels. Altogether, their scheme netted them a total of $7.2 million, with $4.5 million going to Taylor. DOJ

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.

Executives of Company with Ties to Polygamous Church Indicted for Over $500 Million in False Claims for Renewable Fuel Tax Credits

Posted  08/29/18
Tax Fraud
On Friday, August 24th, DOJ announced that three individuals had been indicted by a grand jury in Utah for filing false claims for over $500 million in renewable fuel tax credits on behalf of Washakie Renewable Energy. Washakie is associated with the Kingston Group, a Utah-based polygamous church with fundamentalist Mormon beliefs, that has previously paid $3 million to the EPA for falsely claiming to have produced...

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
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