A Florida man has admitted guilt in a scheme involving fraudulent Environmental Protection Agency (EPA) renewable fuels credits and tax credits linked to biodiesel production. The scheme generated over $7 million in fraudulent EPA credits and sought more than $6 million in fraudulent tax credits.
Court documents reveal that Royce Gillham, who served as the general manager of a biofuel company in Fort Pierce, Florida, was involved in overstating the company's production volume to generate more credits. The company claimed to convert various feedstocks into biodiesel. When auditors requested further information, Gillham and his associates provided false details about their fuel production and customer base.
Gillham pleaded guilty to charges of conspiring to commit wire fraud and filing false claims. His sentencing date is yet to be determined. He could face up to five years in prison and a $250,000 fine for conspiracy. A federal district court judge will decide on accepting the plea agreement after reviewing U.S. Sentencing Guidelines and other factors.
The announcement was made by Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Stefanie Hipkins of IRS Criminal Investigation’s Miami field office, and Acting Special Agent in Charge Leslie Carroll of the EPA’s Criminal Investigation Division.
The case was investigated by EPA-CID and IRS-CI. Senior Trial Attorney Adam Cullman from the Environment and Natural Resources Division's Environmental Crimes Section along with Assistant U.S. Attorney Daniel Funk for the Southern District of Florida are prosecuting.