Former Biofuel Executive Sentenced to Over Three Years in Prison for Multi-Million Dollar Renewable Fuel Credit Fraud in Florida

A former general manager of a Florida-based biofuel company is heading to prison after being caught in a multimillion-dollar fraud scheme.

Royce Gillham, who once helped run the company, was sentenced to 37 months behind bars, followed by three years of supervised release.

His crime? Falsely reporting biodiesel production to secure over $7 million in fraudulent Environmental Protection Agency (EPA) renewable fuel credits and attempting to claim an additional $6 million in tax credits from the IRS.

Inflating Production Numbers for Financial Gain

Gillham worked for a biofuel company in Fort Pierce, Florida, which claimed to produce biodiesel from various feedstocks.

However, the company vastly overstated its production volumes when reporting to federal agencies.

By exaggerating the number of gallons they produced, they were able to generate more credits than they were actually entitled to.

These credits, designed to promote clean energy, were instead manipulated for profit.

Misleading Auditors with False Information

When auditors began scrutinizing the company’s records, Gillham and his co-conspirators took extra steps to cover their tracks.

They provided false documentation about their fuel production and fabricated details about their customers.

The deception was part of a broader scheme to defraud the EPA and IRS, ultimately leading to Gillham’s legal troubles.

Legal Consequences and Investigations

Gillham pleaded guilty to conspiring to commit wire fraud and filing false claims, acknowledging his role in the fraudulent operation.

His sentencing was announced by Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida.

The case was investigated by the EPA’s Criminal Investigation Division and the IRS Criminal Investigations team.

Prosecutors included Senior Trial Attorney Adam Cullman of the ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Daniel Funk for the Southern District of Florida.

What’s Next?

With Gillham behind bars, federal agencies may continue scrutinizing similar fraudulent activities in the renewable fuels industry.

This case serves as a warning that attempts to exploit government programs for personal gain won’t go unnoticed.

Authorities are likely to tighten oversight on renewable fuel credit programs to prevent future schemes.

Meanwhile, businesses in the industry must ensure compliance with regulations to avoid facing similar legal repercussions.