Spokane, WA – In a grim tally of white-collar misdeeds, Scott Johnson, 43, of Pasco, Washington, has been sentenced to over eight years in prison for orchestrating an elaborate $65 million biofuels fraud scheme. Acting United States Attorney Joseph H. Harrington announced that Johnson was handed a 97-month sentence, plus three years of court supervision following his release from federal prison.
Johnson’s guilty plea on November 24, 2015, stemmed from his role in the conspiracy at Gen-X Energy Group, Inc., which falsely claimed to produce over 72 million renewable energy credits between October 2012 and April 2015. The deceitful endeavor reaped over $57 million through credit sales, while filing false IRS claims for $9.5 million in excise credit refunds.
United States District Judge Salvador Mendoza, Jr., ordered Johnson to pay nearly $10 million in restitution to the U.S. taxpayers and another $6.2 million to his victims. Much of the claimed renewable fuel was either non-existent or re-processed repeatedly at Gen-X facilities.
Harrington emphasized the office’s dedication to white-collar crime prosecution, commending the IRS-Criminal Investigation and the EPA’s Criminal Investigations Division for their relentless efforts in bringing Johnson to justice.
Jeanne M. Proctor, Special Agent in Charge of EPA’s criminal program in Washington State, highlighted the impact of the fraud on American taxpayers and the biofuels industry, emphasizing the commitment to legal fairness within the industry. IRS Criminal Investigation’s Special Agent in Charge Darrell Waldon echoed this sentiment, calling Johnson’s actions a classic case of greed run amok.
The investigation was a collaborative effort between the IRS-Criminal Investigation, EPA’s Criminal Investigations Division, and the U.S. Secret Service, with support from the Washington State Patrol. The prosecution team consisted of Scott T. Jones, Karla G. Perrin, Adam Cullman, and Thomas Franzinger.
RELATED: Thomas Davanzo, Robert Fedyna Sentenced in Biodiesel Fraud Scheme
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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