David Dunham, Wire Fraud and Defrauding the United States, Pennsylvania 2019

David Dunham, 40, of Bethlehem, PA, is going to prison for seven years after being convicted in a brazen green energy fraud scheme that ripped off the Environmental Protection Agency (EPA), Internal Revenue Service (IRS), and U.S. Department of Agriculture (USDA) for nearly $50 million. U.S. District Court Judge Jeffrey L. Schmehl sentenced Dunham to 84 months behind bars, followed by three years of supervised release, and ordered him to pay more than $10.2 million in restitution.

Dunham, owner of Smarter Fuel LLC in Wind Gap, PA, and co-owner of Greenworks Holdings LLC in Allentown, PA, was found guilty by a federal jury in April 2019 after a four-week trial. He was convicted on charges of conspiracy to commit wire fraud and to defraud the United States, wire fraud, filing false tax documents, and obstruction of justice. The scheme spanned from 2010 to 2015 and revolved around Renewable Identification Numbers (RINs), credits issued by the EPA for producing biofuels—credits Dunham claimed he earned but never actually generated.

Prosecutors proved that Dunham sold RINs for biofuels he never produced and in many cases never even possessed. He used these fabricated claims to secure millions in government funds from the IRS and USDA. His co-defendant, Ralph Tomasso, co-owner of Greenworks, pleaded guilty to conspiracy to defraud federal programs and is awaiting sentencing. The operation wasn’t just a scam on paper—it was a full-scale financial shell game built on lies and falsified records.

When auditors came knocking, Dunham doubled down on deception. The trial revealed he altered accounting records the day before an IRS audit in 2010. In 2012, during a USDA audit, he ordered an employee to fabricate dozens of documents to make it appear his companies were operating legally. These weren’t spur-of-the-moment decisions—they were calculated moves to obstruct justice and prolong the fraud.

“David Dunham is a thief, dressed up in ‘green energy’ clothing,” said U.S. Attorney William M. McSwain. “He thought he could con not just one, but several federal agencies. Eventually, his lies caught up to him and now his reward is a long stint in federal prison.” Federal authorities emphasized that the case sends a message: fraud against renewable energy programs will be met with maximum consequences.

The investigation was led by the EPA’s Criminal Investigation Division, IRS Criminal Investigation, and USDA’s Office of Inspector General. Assistant U.S. Attorney Mary E. Crawley and Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division (ENRD) prosecuted the case. “This sentence sends a clear message,” said Assistant Attorney General Jeffrey Bossert Clark, “the Department of Justice will not hesitate to prosecute those who undermine support for true American-made renewable fuel.”

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