Gregory Schnabel, Renewable Fuel Credit Fraud, Ohio 2023

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Table of Contents

Ohio Man Sentenced to 63 Months for $59M Renewable Fuel Scheme

BROOKLYN, OH – Gregory Schnabel, owner of GRC Fuels of Oneonta, New York, has been sentenced to serve 63 months in prison for his role in a conspiracy that generated over $47 million in fraudulent EPA renewable fuels credits and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel.

According to information disclosed during the court proceedings, Schnabel engaged in a scheme with other co-conspirators to fraudulently claim EPA renewable fuels credits (also known as “RIN” credits) and tax credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and on fuel that was exported or otherwise used contrary to EPA and IRS regulations.

Schnabel bought and sold fuel and RINs from several individuals who have already pleaded guilty for their roles in the scheme. The sentencing of Schnabel was imposed by The Honorable Judge James L. Graham for the U.S. District Court for the Southern District of Ohio.

Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division said, “Today’s sentencing shows that the government will continue to vigorously prosecute those who seek to defraud the federal government and the public through unlawful renewable fuel credit schemes.”

Assistant Administrator Susan Bodine of EPA’s Office of Enforcement and Compliance Assurance said, “The outcome of this case is a great achievement. The defendant participated in a complex scheme to defraud his clients and the United States Government. Through the great work of investigators from EPA and its law enforcement partners, that criminal activity is over and those involved have been prosecuted.”

The total amount of restitution ordered in the case is $26,244,437.06. Schnabel was also sentenced to a three-year term of supervised release after serving his prison term.

The investigation into the scheme was conducted by the IRS, EPA, and FBI. “This sentencing reinforces the message that there are serious consequences for those who manipulate the system for their own financial gain and defraud taxpayers and the United States government in doing so,” said FBI Indianapolis Special Agent in Charge Grant Mendenhall.