Imperial Petroleum CEO Wilson Gets 10 Years for Biofuel Fraud

INDIANAPOLIS – The stench of greed hangs heavy over Indiana today as Jeffrey Wilson, CEO of Imperial Petroleum Inc., was sentenced to 120 months in federal prison for orchestrating a brazen multi-million dollar fraud scheme. Wilson wasn’t alone. His co-conspirators, Craig Ducey (74 months) and Chad Ducey (84 months), also received substantial prison terms, bringing a close to a case that exposed a rotten core within the renewable fuel industry.

U.S. Attorney Josh Minkler didn’t mince words: “Indiana is not the place to try to fool the investing public. Here, we expect executives to care about shareholders and to be upfront and honest about what the companies they manage are doing. They are simply thieves with fancy titles and they will now spend time in a federal prison.” The scheme centered on manipulating federal tax credits and renewable fuel credits associated with biodiesel production, lining the pockets of the conspirators while defrauding both investors and those legitimately participating in the renewable energy market.

The fraud wasn’t a one-off incident; it was a systematic operation involving multiple layers of deception. Wilson, as President and CEO of Imperial Petroleum, personally certified the accuracy of the company’s financial reports filed with the Securities and Exchange Commission (SEC), knowing full well they were built on lies. He actively concealed the truth from the company’s external auditor, desperately trying to keep the scheme hidden. A July 2016 jury trial convicted Wilson on securities fraud charges, revealing the depth of his involvement. Craig Ducey, cooperating with authorities, testified against Wilson, earning a reduced sentence for his substantial assistance.

The roots of the fraud lay with e-biofuels LLC, a company Imperial Petroleum acquired. Wilson discovered e-biofuels was falsifying paperwork to claim millions in federal tax rebates for biodiesel that was *never actually produced*. Instead of reporting the illegal activity, he saw an opportunity to exploit it, turning a blind eye to the fraudulent claims to boost Imperial Petroleum’s profits. Assistant Attorney General John C. Cruden put it bluntly: “The defendants’ fraud…not only cheated customers, investors and taxpayers, it set renewable fuel efforts back for the entire nation.”

The fallout extends beyond the courtroom. Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance, emphasized the damage done to the Renewable Fuel Standard program, designed to promote sustainable energy and reduce dependence on foreign oil. “EPA and its partners are committed to protecting the integrity of this important program and to ensuring a level playing field for honest companies,” she stated. The case serves as a stark warning: attempts to game the system for personal gain will be met with the full force of the law.

Joseph Furando, Katirina Tracy, Brian Carmichael, and Chris Ducey – the remaining co-conspirators – were sentenced in prior hearings, completing the prosecution of this tangled web of deceit. While the sentences vary, the message is clear: in Indiana, and across the nation, those who prioritize profit over integrity will face the consequences. This wasn’t just about money; it was about undermining a vital program and betraying the trust of investors and the public.