Denver, CO – Matthew Taylor was sentenced to 83 months in federal prison and ordered to pay roughly $7.2 million in restitution after pleading guilty to charges stemming from a multi-million dollar renewable fuel tax credit scheme. The case, investigated by the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and prosecuted by the Department of Justice, reveals a sophisticated fraud perpetrated against the United States government.
According to court documents, Taylor and his co-conspirators established a sham company, Shintan Inc., purportedly engaged in the production of renewable fuels. Between 2010 and 2013, Shintan submitted false claims to the Internal Revenue Service (IRS) for tax credits intended to incentivize the development and use of renewable energy sources. The scheme successfully yielded over $7.2 million in fraudulent tax credits, with Taylor personally profiting to the tune of $4.5 million.
However, investigators found that Shintan never actually produced any qualifying renewable fuel. The operation was a complete fabrication designed solely to exploit the federal tax credit program. To conceal the illicit funds, Taylor and his associates meticulously transferred the money through a complex network of bank accounts belonging to Shintan and other deliberately created shell companies. This layering of transactions aimed to obscure the origin of the funds and evade detection by law enforcement.
Legal Ramifications
On February 28, 2020, Taylor pleaded guilty to three federal counts: conspiracy to defraud the United States (18 U.S.C. 371), conspiracy to commit money laundering (18 U.S.C. 1956(h)), and money laundering (18 U.S.C. 1957, 21 U.S.C. 841(a)(1)). The charges carry significant penalties, reflecting the severity of the financial crimes committed. Beyond the 83-month prison sentence, the court mandated full restitution of the $7.2 million fraudulently obtained. This means Taylor is legally obligated to repay the entire amount to the United States government.
A Pattern of Deceit
The EPA-CID’s investigation highlighted the growing threat of fraud within the renewable fuel industry. This case serves as a stark reminder that those who attempt to profit from government incentive programs through deceitful means will be held accountable. Federal authorities are increasingly focused on uncovering and prosecuting such schemes, ensuring the integrity of programs designed to promote legitimate environmental initiatives.
Key Facts
- Defendant: Matthew Taylor
- Location: Colorado
- Years of Fraud: 2010 – 2013
- Fraudulent Tax Credits: Over $7.2 million
- Personal Profit: $4.5 million (to Taylor)
- Company Used: Shintan Inc. (a shell company)
- Statutes Violated: 18 U.S.C. 371, 18 U.S.C. 1956(h), 18 U.S.C. 1957, 21 U.S.C. 841(a)(1)
- Sentence: 83 months imprisonment, $7.2 million restitution
The case underscores the importance of diligent oversight and robust enforcement mechanisms to safeguard taxpayer dollars and maintain the credibility of federal programs. Further investigation into Taylor’s co-conspirators is ongoing, and additional charges may be forthcoming.
Source: EPA ECHO Enforcement Case Database
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