Salt Lake City, UT – Michelle Helms was sentenced to three years of probation, a $10,000 fine, and ordered to pay $1,017,617.48 in restitution earlier this year for her role in a decade-long scheme to defraud the United States government. The sentencing, handed down on February 3, 2021, concludes a case involving false claims for renewable fuel tax credits.
Helms, along with her business partner Frank DiBenedetto, operated a grease recycling business and conspired with others to submit fraudulent claims through their company, Washakie Renewable Energy. The scheme, which began in April 2011, centered around inflating claims for various renewable fuel tax credits, including those for renewable diesel mixture, alternative fuel, and alternative fuel mixture.
Federal prosecutors detailed how Washakie Renewable Energy knowingly made false statements to the government in order to illegally obtain refundable tax credits. The credits were intended to incentivize the production of renewable fuels, but Helms and DiBenedetto exploited the system for personal financial gain. The investigation revealed a sophisticated effort to misrepresent the volume and type of renewable fuel produced, allowing them to claim significantly larger tax refunds than they were entitled to.
The case highlights a growing concern within the Environmental Protection Agency’s (EPA) criminal enforcement program: the misuse of renewable fuel incentives. While the intent of these programs is environmentally sound, the potential for fraud attracts criminals seeking to profit from government subsidies. The EPA worked in conjunction with the Department of Justice to unravel the complex financial transactions and establish the fraudulent nature of Washakie Renewable Energy’s claims.
DiBenedetto received the same sentence as Helms – three years of probation, a $10,000 fine, and $1,017,617.48 in restitution. The restitution order is intended to reimburse the U.S. Treasury for the fraudulently obtained tax credits. Legal experts suggest the length of the scheme and the substantial amount of money involved could have led to more severe penalties if not for potential mitigating factors presented during sentencing.
Key Facts
- Defendant: Michelle Helms
- Co-Defendant: Frank DiBenedetto
- Location: Utah
- Year of Sentencing: 2021
- Statutes Violated: 26 U.S.C. 7206(2) – False Statements
- Penalties: Three years probation, $10,000 fine, $1,017,617.48 restitution
- Scheme: Fraudulent claims for renewable fuel tax credits through Washakie Renewable Energy.
GrimyTimes will continue to follow this case and report on any further developments.
Source: EPA ECHO Enforcement Case Database
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