Christopher Burdett, the 59-year-old owner of a Florida-based biofuel company, admitted yesterday in a U.S. District Court in the Southern District of Florida that he took part in a conspiracy to defraud the federal government.
The scheme involved over $7 million in fake Environmental Protection Agency (EPA) renewable fuels credits and an attempt to claim more than $6 million in fraudulent tax credits tied to biodiesel production.
Inflated Production Numbers and False Claims
Court documents reveal that Burdett’s company, located in Fort Pierce, claimed to convert various feedstocks into biodiesel.
In reality, the amount of fuel reported to the IRS and EPA was grossly overstated. By exaggerating production volumes, the company generated more credits than it was entitled to.
When auditors requested additional information, Burdett and the company’s former general manager, Royce Gillham—who received a 37-month prison sentence last year—provided false data about fuel production and customer accounts.
Federal Officials Speak Out
“This fraud undermines the integrity of the EPA’s Renewable Fuel Standard and harms farmers and refiners who follow the law,” said Adam Gustafson, Principal Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division (ENRD).
Jeffrey A. Hall, Assistant Administrator of the EPA’s Office of Enforcement and Compliance Assurance, added:
“The defendants claimed credits for fuel they never produced or sold. Their actions not only cheated American fuel producers and consumers but also threatened energy security. Fraud of this kind is unacceptable.”
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U.S. Attorney Jason A. Reding Quiñones stressed that this was intentional fraud, not a paperwork mistake. “Burdett inflated production numbers to steal millions in fuel and tax credits, taking money directly from taxpayers,” he said.
Ron Loecker, Special Agent in Charge of IRS Criminal Investigation in Florida, noted that schemes like this erode trust in the tax system and harm honest taxpayers, emphasizing the IRS’s commitment to pursuing fraudsters.
The Charges and Possible Penalties
Burdett pleaded guilty to conspiracy to commit wire fraud and filing false claims. He is scheduled for sentencing in the coming months.
The conspiracy charge carries a maximum sentence of five years in prison and a $250,000 fine.
A federal district court judge will determine whether to accept the plea agreement, taking into account U.S. Sentencing Guidelines and other statutory factors.
How the Case Was Investigated
The investigation was carried out jointly by the EPA’s Criminal Investigation Division and IRS Criminal Investigations.
Prosecution is being handled by Senior Trial Attorney Adam Cullman of ENRD and Assistant U.S. Attorney Daniel Funk for the Southern District of Florida.
This case is part of a broader federal effort to combat trade fraud, involving the Department of Justice Trade Fraud Task Force.
The task force combines the resources of multiple federal agencies—including the Criminal and Civil Divisions’ Fraud Sections, the Department of Homeland Security, and U.S. Attorney’s Offices nationwide—to protect revenue, domestic industries, consumer confidence, and national security.
What the Justice Department Wants
Authorities encourage whistleblowers to report credible allegations of fraud through programs like the Corporate Whistleblower Program or under the False Claims Act.
The goal is to identify and prosecute anyone who attempts to game federal programs for personal profit, ensuring that U.S. taxpayers are protected.
What’s Next
Burdett’s sentencing will clarify how long he will serve behind bars and may include restitution for the defrauded credits.
Meanwhile, the case serves as a reminder to biofuel producers and other federal program participants: attempting to cheat the system carries severe legal consequences.