INDIANAPOLIS, IN – The co-owners of a now-defunct Indiana biofuel company have been sentenced for their roles in a multi-million dollar scheme to defraud the federal government through false claims related to renewable fuel tax credits and EPA credits. Fred Witmer and Gary Jury, principals of Triton Energy LLC and Gen2 Renewable Diesel LLC, received prison sentences following a protracted investigation by federal authorities.
According to court documents, Witmer and Jury conspired to generate over $60 million in fraudulent tax credits and Renewable Identification Numbers (RINs), credits awarded under the Renewable Fuel Standard program. The pair falsely claimed these credits on renewable fuel that did not qualify, and then deceived purchasers of the RINs regarding the fuel’s intended use.
Investigators discovered that despite representing the fuel was destined for transportation purposes – a key requirement for the tax credits and RIN generation – Witmer directed the sale of the biofuel for uses that disqualified it from the program. This included selling the product for the production of fire starter logs, as well as for use in the manufacturing of asphalt and cement. This deliberate misdirection allowed the defendants to illegally profit from government incentives intended to promote legitimate renewable energy production.
Federal Response & Penalties
The Justice Department’s Environment and Natural Resources Division, alongside the FBI, IRS Criminal Investigation, and the EPA’s Criminal Investigation Division, led the investigation. Acting Assistant Attorney General Jeffrey H. Wood emphasized the severity of the crime, stating the defendants “purposefully defrauded the federal government, taking illegal advantage of a program created by Congress.”
Witmer and Jury pleaded guilty in October 2016 to charges including conspiracy (18 U.S.C. 371), wire fraud (18 U.S.C. 1343), and false statements under the Clean Air Act (42 U.S.C. 7413(c)(2)(A)). On July 18, 2017, Senior Judge James T. Moody sentenced Witmer to 57 months in prison, while Jury received a 30-month sentence. Both defendants were also ordered to pay restitution, the amount of which has not been publicly disclosed.
Impact & Future Enforcement
Federal officials highlighted the importance of pursuing such cases to safeguard the integrity of the renewable fuel market. Acting Assistant Administrator Larry Starfield of the EPA stated the fraud “undermines the competitive and fair marketplace” for legitimate renewable fuel producers. The case serves as a warning to others considering similar schemes, with authorities promising continued vigilance and prosecution of fraud within the RIN markets.
Key Facts
- Defendants: Fred Witmer and Gary Jury
- Company: Triton Energy LLC & Gen2 Renewable Diesel LLC
- State: Indiana
- Year: 2017
- Fraud Amount: Over $60 million in fraudulent tax credits and RINs
- Charges: Conspiracy (18 U.S.C. 371), Wire Fraud (18 U.S.C. 1343), False Statements (42 U.S.C. 7413(c)(2)(A))
- Penalties: Witmer – 57 months imprisonment; Jury – 30 months imprisonment, plus restitution.
The prosecution was handled by Environmental Crimes Section Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik.
Source: EPA ECHO Enforcement Case Database
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