James Jariv, Biofuels Fraud, Nevada 2024

Two men have been indicted by a federal grand jury in Las Vegas for offenses involving the federal renewable fuel program that allegedly netted them more than $37 million.

JAMES JARIV, 63, of Las Vegas, and NATHAN STOLIAR, 64, of Australia, are charged with a 57-count indictment that includes allegations of conspiracy, wire fraud, false statements under the Clean Air Act, obstruction of justice and conspiracy to engage in money laundering.

The indictment alleges that beginning around June of 2009, the two defendants operated and controlled a company — City Farm Biofuel in Vancouver, British Columbia, Canada — that held itself out as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils.

Jariv also operated and controlled a company based in Las Vegas, Nevada, called Global E Marketing. The government alleges that these defendants claimed to produce biodiesel at the City Farm facility, claimed to import and sell biodiesel to Global E Marketing, and then generated and sold RINs based upon this claimed production, sale and importation.

The indictment alleges that the defendants’ scheme allowed them to generate approximately $7 million in RINs that were fraudulent, which were then sold to companies that needed to obtain them.

The indictment also alleges that, beginning around the same time period and continuing through Dec. 31, 2013, the defendants, using their company MJ Biodfuels, bought over 23 million gallons of RIN-less biodiesel that had been blended with small amounts of petroleum diesel, known as B99, from companies in the United States.

The defendants sold some of this biodiesel to purchasers in the United States, claiming it was pure biodiesel, known as B100, produced at the City Farm facility and imported into the United States. By claiming this biodiesel was B100 and not RIN-less B99, the defendants were able to claim the fuel was eligible to be used to generate credits and incentives, and were able to sell the fuel for significantly more than they otherwise would have been able.

The indictment alleges that, in doing so, the defendants failed to give to the United States RINs worth in excess of $30 million, keeping this money for themselves instead.

James Jariv, a Las Vegas resident, was arrested on Tuesday and made his initial appearance in federal court in Las Vegas on Wednesday, following the unsealing of the indictment.

The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production of biodiesel and to encourage biodiesel use in the United States.

Biodiesel producers and importers could generate and attach credits known as “renewable identification numbers” or RINs to biodiesel they produced or imported.

The indictment alleges that the defendants created false records and made false statements to conceal their fraudulent claims.

Jariv and Stoliar are accused of using their scheme to generate over $37 million in ill-gotten gains.

The indictment does not specify what sentence the defendants may face if convicted.

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