Keystone Biofuels Inc., Tax and False Statements Conspiracy, Pennsylvania 2009

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Keystone Biofuels Inc. Found Guilty of Tax and False Statements Conspiracy

HARRISBURG – Following a 14-day jury trial in Harrisburg, Pennsylvania, Keystone Biofuels Inc. and its co-owners, Ben T. Wootton and Race A. Miner, were found guilty of conspiracy to make false statements to the Environmental Protection Agency (EPA), six counts of making false statements to the EPA, one count of conspiracy to defraud the Internal Revenue Service (IRS), and one count of aiding and assisting in the filing of a false claim with the IRS.

The jury also found the corporation guilty of conspiring to make false statements to the EPA and six counts of making false statements to the EPA.

According to the evidence presented at trial, Wootton and Miner co-owned and operated Keystone, originally in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Keystone purported to be a producer and seller of biodiesel, a type of renewable fuel. From August 2009 through September 2013, Wootton and Miner participated in a conspiracy to fraudulently generate renewable fuel credits, identified by renewable identification numbers (RINs) on Keystone fuel and, through January 2012, to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit, a federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mixture as a fuel.

“The defendants in this case participated in a criminal scheme that struck directly at the heart of a government program that was created to benefit both honest business owners and the community at large by encouraging the development and use of clean bio-diesel fuel,” said U.S. Attorney David J. Freed. “Instead, the defendants defrauded their fellow citizens to the tune of more than $4 million. Working with our partners, we will not rest in pursuing cases that target our shared financial resources.”

Ben T. Wootton and Race A. Miner were found guilty of the following charges:

Conspiracy to make false statements to the EPA.

Six counts of making false statements to the EPA.

Conspiracy to defraud the IRS.

Aiding and assisting in the filing of a false claim with the IRS.

Ben T. Wootton and Race A. Miner, co-owners of Keystone Biofuels Inc., were found guilty in Harrisburg, Pennsylvania on an exact date not specified. The outcome of the case is not specified. The exact date of the crime is August 2009 through September 2013. The total amount of money defrauded is more than $4 million.