INDIANAPOLIS, IN – The co-owners of an Indiana biofuel production company were sentenced this week for their roles in a multi-million dollar scheme to defraud the federal government, according to the Department of Justice. Fred Witmer and Gary Jury, principals of Triton Energy LLC and Gen2 Renewable Diesel LLC, received prison sentences following their guilty pleas in October 2016.
The pair orchestrated a complex fraud involving the Renewable Fuel Standard (RFS) program, designed to incentivize the production and use of renewable fuels. Between 2016 and 2017, Witmer and Jury fraudulently claimed over $60 million in tax credits and Renewable Identification Numbers (RINs) – credits awarded to biofuel producers. Investigators found that the fuel produced by Triton and Gen2 did not qualify for these credits, as it was not actually used for its intended purpose of transportation fuel.
Evidence presented during the investigation revealed that Witmer and Jury knowingly sold the biofuel for uses outside the RFS program, including the production of fire starter logs, asphalt, and cement. They then falsely represented to purchasers of the RIN credits that the fuel *was* being used for transportation, effectively deceiving the government and manipulating the credit market for personal gain. The scheme involved a deliberate misrepresentation of the fuel’s ultimate destination and use.
Legal Ramifications
Witmer was sentenced to 57 months in prison, while Jury received a 30-month sentence. Both men were convicted on charges of conspiracy (18 U.S.C. 371), wire fraud (18 U.S.C. 1343), and violating the Clean Air Act (42 U.S.C. 7413(c)(2)(A)). These charges carry significant penalties, including imprisonment and substantial financial penalties. The case highlights the government’s increasing scrutiny of the RIN market and its commitment to prosecuting fraudulent activity within the renewable fuels industry.
Federal Investigation
The investigation was a collaborative effort led by the Federal Bureau of Investigation (FBI) Indianapolis Division, the Internal Revenue Service (IRS) Criminal Investigation Indianapolis Field Office, and the Environmental Protection Agency (EPA) Criminal Investigation Division. Federal officials emphasized the importance of interagency cooperation in dismantling such sophisticated schemes. “This case shows that EPA is fully committed to working with our law enforcement partners to pursue and hold accountable entities that break the law,” stated Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance.
Impact on Renewable Fuel Market
Authorities warn that schemes like this undermine the integrity of the renewable fuels market and create an unfair playing field for legitimate producers. “The defendants’ massive fraud in this case undermines the competitive and fair marketplace on which law-abiding renewable fuels producers depend,” Starfield added. The prosecution aims to deter others from engaging in similar fraudulent activities and ensure the long-term viability of the RFS program.
Key Facts
- Defendants: Fred Witmer and Gary Jury
- Company: Triton Energy LLC and Gen2 Renewable Diesel LLC
- State: Indiana
- Year: 2017
- Fraud Amount: Over $60 million in fraudulent tax credits and RIN credits
- Charges: Conspiracy (18 U.S.C. 371), Wire Fraud (18 U.S.C. 1343), Clean Air Act Violation (42 U.S.C. 7413(c)(2)(A))
- Sentencing: Witmer – 57 months; Jury – 30 months
- Investigation Agencies: FBI, IRS-CI, EPA-CI
Source: EPA ECHO Enforcement Case Database
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