Biofuel executive pleads guilty in $13 million tax fraud scheme

A Fort Pierce, Florida, biofuel company executive has pleaded guilty to orchestrating a multi-million dollar fraud scheme involving Environmental Protection Agency (EPA) renewable fuel credits and false tax claims. Royce Gillham, the former general manager of the unnamed company, admitted to conspiring to generate over $7 million in fraudulent EPA credits and seeking more than $6 million in illegitimate tax benefits by vastly overstating biodiesel production volumes to federal agencies.

Gillham and his co-conspirators provided false information to auditors about fuel production and customers when questioned. The executive pleaded guilty to conspiracy to commit wire fraud and filing false claims, facing a maximum sentence of 5 years in prison and a $250,000 fine for the conspiracy charge. The case, jointly investigated by the EPA's Criminal Investigation Division and IRS Criminal Investigation, underscores the ongoing challenges in regulating the renewable fuels industry and the potential for fraud in environmental credit systems.

As the biofuels sector continues to grow, this guilty plea serves as a stark reminder of the need for stringent oversight and the serious consequences of attempting to manipulate government incentive programs. The sentencing date has not yet been scheduled, and a federal district court judge will determine whether to accept the plea agreement after considering the U.S. Sentencing Guidelines and other statutory factors.