Andre Mark Bernard, Biodiesel Fraud, Florida 2018

Pasco, FL – Andre Mark Bernard was sentenced to 87 months in federal prison earlier this year for his central role in a complex, multi-state scheme to defraud biodiesel buyers and U.S. taxpayers. The 2018 sentencing, stemming from a conviction in August 2017, brings a degree of closure to a case that exposed a significant vulnerability within the Renewable Fuel Standard (RFS) program.

According to court documents and investigators from the U.S. Secret Service, the Environmental Protection Agency’s Criminal Investigation Division, and the Internal Revenue Service’s Criminal Investigation, Bernard and his co-conspirators operated a network of entities designed to exploit the system of Renewable Identification Numbers (RINs) – credits generated by the production of renewable fuels like biodiesel. The scheme revolved around Gen-X Energy Group, based in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC) in Dublin, Georgia.

The core of the fraud involved repeatedly reprocessing already-credited biodiesel, effectively laundering it as new feedstock to generate *additional* RINs. Investigators determined that between March 2013 and March 2014, the conspiracy generated at least 60 million fraudulent credits based on fuel that was either never produced or was simply recycled through Gen-X and SRC facilities. These bogus credits were then sold to third parties, netting the co-conspirators at least $42 million. Gen-X also illegally claimed approximately $4.3 million in false tax credits.

The scheme relied on a series of false transactions and meticulously crafted paperwork to mask the re-processing of fuel. By manipulating the documentation, Bernard and his associates successfully convinced buyers that they were purchasing legitimately produced biodiesel, allowing them to claim valuable tax credits and comply with RFS mandates. This created a ripple effect of financial gain for the conspirators while simultaneously undermining the integrity of the renewable fuel program.

Prosecutors, led by Trial Attorney Adam Cullman of the Department of Justice’s Environment and Natural Resources Division, and Assistant United States Attorneys Sara C. Sweeney and Megan Kistler, successfully argued that Bernard was a key architect of the fraud, directly profiting from the scheme. The court ordered a $10.5 million money judgment against Bernard, with approximately $1.5 million already seized from accounts to be applied toward restitution.

Key Facts

• Defendant: Andre Mark Bernard
• Location: Multi-state, with key operations in Florida, Washington, and Georgia
• Years Active: 2013 – 2014
• Fraud Amount: $42 million+ in fraudulent credit sales, $4.3 million in false tax credits
• Sentencing: 87 months federal prison, $10.5 million money judgment

Legal Violations & Penalties

Bernard was found guilty of conspiracy to commit wire fraud (18 U.S.C. 1349), a crime punishable by up to 20 years in prison and a $250,000 fine. He was also convicted of making false statements related to the Clean Air Act (42 U.S.C. 7413(c)(2)(A)), carrying a potential sentence of up to 5 years imprisonment and a $250,000 fine. The combined penalties, coupled with the substantial financial judgment, reflect the severity of the offense and the government’s commitment to prosecuting those who exploit environmental regulations for personal gain.

This case serves as a stark reminder of the potential for fraud within the renewable fuel market and underscores the importance of robust oversight and enforcement to ensure the integrity of programs designed to promote cleaner energy.

Source: EPA ECHO Enforcement Case Database

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