Feds allege more than $100M biofuels scam
The Associated Press September 18, 2013 2:36PM
Updated: October 20, 2013 7:36AM
INDIANAPOLIS — Federal authorities have arrested six people on conspiracy, wire fraud and other charges in an alleged biofuels scam they say cost the government and investors more than $100 million.
Indictments allege the defendants sold more than 35 million gallons of fuel as 100 percent biodiesel when it actually contained some petroleum diesel.
U.S. Attorney Joe Hogsett said Middletown, Ind.-based E-Biofuels purchased biofuels that were 99 percent biodiesel and 1 percent diesel from other companies and sold it at a higher price by claiming it was 100 percent biodiesel. Two other companies also allegedly were involved.
Hogsett said customers were defrauded of more than $55 million, the Internal Revenue Service lost $35 million and investors lost tens of millions of dollars.
Attorneys for the defendants were not immediately available for comment.