David M. Dunham Jr., of Reading, Pennsylvania, was convicted by a federal jury after a four-week trial on charges of conspiracy to commit wire fraud and defraud the United States, wire fraud, filing false tax documents, and obstruction of justice. The conviction, delivered in U.S. District Court before Judge Jeffrey L. Schmehl, marks the end of a years-long green energy scam that looted $50 million from federal programs and duped customers who believed they were investing in sustainable fuel solutions.
Dunham orchestrated the fraud through his company, Smarter Fuels, operating from 2010 to 2015. He fraudulently applied for and sold Renewable Fuel Standard (RFS) program credits—government-backed certifications tied to the sale of biofuels—despite never actually selling or possessing the required renewable fuels. These fake credits were sold to energy companies and regulators, including the Environmental Protection Agency (EPA), the Internal Revenue Service (IRS), and the U.S. Department of Agriculture (USDA), all of whom were misled into believing Dunham’s operation was legitimate.
Prosecutors revealed that Dunham submitted forged documentation and manipulated records to simulate compliance with federal biofuel mandates. The scam extended to his own customers, who paid for green energy solutions that never existed. Co-defendant Ralph Tomasso, who ran a related business, previously pleaded guilty to conspiracy to defraud federal programs, providing key evidence in the case. Despite attempts to shift blame, Dunham was found solely responsible for masterminding the scheme.
The U.S. government is now seeking forfeiture of approximately $1.7 million in proceeds traced directly to the fraud, along with multiple real estate parcels purchased with illicit funds. Authorities say the case is one of the largest green energy frauds prosecuted in recent years, exposing vulnerabilities in oversight mechanisms designed to promote clean energy.
“Though this defendant tried to deflect blame on others, his years of scamming the government and his customers has finally caught up to him,” said U.S. Attorney William M. McSwain. “Everyone has to follow the rules. You cannot lie, steal, or cover up your misdeeds. If you do, we will hold you accountable.”
“Today’s conviction sends a clear message to any future fraudsters out there: crime does not pay,” said Assistant Attorney General Jeffrey Bossert Clark. “When the defendant knowingly cheated a federal government program aimed at energy conservation, he gave himself an unfair advantage over his competitors and stole millions of dollars from the American taxpayer in the process.” EPA, IRS, and USDA-OIG investigators hailed the verdict as a major victory in protecting federal environmental programs from financial exploitation.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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