Matthew Taylor, $7.2 Million Biodiesel Tax Credit Fraud, Colorado 2019

A Colorado man has been found guilty of masterminding a massive biodiesel tax credit fraud scheme, netting at least $4.5 million in ill-gotten gains.

Matthew Taylor, a Colorado resident, pleaded guilty to conspiracy to defraud the United States, conspiracy to commit money laundering, and money laundering in the U.S. District Court for the District of Colorado.

According to the government, Taylor and his co-conspirators created a fake company, Shintan Inc. (Shintan), in 2009, which purported to be in the business of creating renewable fuels. However, the company produced no qualifying renewable fuel, and the documents filed with the Internal Revenue Service (IRS) were fraudulent.

From 2010 to 2013, Taylor and his co-conspirators filed claims with the IRS for over $7.2 million in tax credits for renewable fuel produced. The funds were transferred through bank accounts belonging to Shintan and other shell companies to avoid detection.

Taylor faces up to five years in prison on the conspiracy to defraud the government count, 10 years in prison on the money laundering conspiracy count and the money laundering count. Sentencing is scheduled for Dec. 6, 2019.

In addition to a prison sentence, Taylor faces a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Richard E. Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Leslie A. Goemaat, Arthur J. Ewenczyk, Sarah A. Kiewlicz, and Stephen K. Moulton, who are prosecuting the case.

Source: https://www.justice.gov/archives/opa/pr/colorado-man-pleads-guilty-72-million-biodiesel-tax-credit-fraud-scheme