Pasco, FL – Andre Mark Bernard was sentenced to 87 months in federal prison earlier this month for his central role in a sophisticated, multi-state scheme to defraud biodiesel buyers and U.S. taxpayers. The elaborate fraud, uncovered by a joint investigation involving the U.S. Secret Service, the Environmental Protection Agency (EPA), and the Internal Revenue Service (IRS), involved the repeated recycling of ineligible renewable fuel to fraudulently generate and sell valuable tax credits.
According to court documents, Bernard and his co-conspirators operated a network of entities designed to obscure the illegal activity. The scheme centered around Gen-X Energy Group, headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia. These facilities purportedly purchased renewable fuel that had already been used to claim credits, making it ineligible for further incentives. However, the fuel was then deceptively processed to appear as new feedstock, allowing the conspirators to resell it back to Gen-X or SRC and re-claim the credits – a cycle repeated multiple times to maximize illicit profits.
Between March 2013 and March 2014, the co-conspirators generated at least 60 million fraudulent credits based on fuel that was either never produced or simply re-processed. These credits were then sold to third parties, netting the group a minimum of $42 million. Gen-X Energy Group also illegally claimed approximately $4.3 million in false tax credits as a result of the scheme. The operation relied on a complex web of transactions designed to mislead regulators and conceal the fraudulent nature of the fuel credits.
Bernard was found guilty on August 2, 2017, following a thorough investigation. The sentencing judge not only imposed a substantial prison term but also ordered a $10.5 million money judgment against Bernard, representing the personal proceeds he derived from the criminal enterprise. Authorities have already seized two of Bernard’s accounts containing over $1.5 million, which will be applied towards satisfying the judgment.
Legal Ramifications
Bernard was convicted of conspiracy to commit wire fraud (18 U.S.C. 1349) and making false statements in relation to the Clean Air Act (42 U.S.C. 7413(c)(2)(A)). These violations carry significant penalties, including imprisonment and financial penalties. The Clean Air Act is designed to protect public health and the environment, and fraudulent schemes that undermine its effectiveness are treated with the utmost seriousness by federal authorities. The wire fraud charge stems from the use of electronic communications to facilitate the fraudulent transactions across state lines.
Key Facts
- Defendant: Andre Mark Bernard
- Location: Florida (scheme involved multiple states)
- Years Active: 2013-2014
- Fraudulent Credits Generated: At least 60 million
- Total Illicit Proceeds: $42 million+ from credit sales, $4.3 million in false tax credits
- Sentence: 87 months federal prison, $10.5 million money judgment
- Investigating Agencies: U.S. Secret Service, EPA Criminal Investigation Division, IRS Criminal Investigation
The case was prosecuted by Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division, alongside Assistant United States Attorneys Sara C. Sweeney and Megan Kistler. This conviction sends a clear message that those who attempt to profit from environmental fraud will be held accountable for their actions.
Source: EPA ECHO Enforcement Case Database
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