Philadelphia, PA – Ralph Tommaso was sentenced to over a year in federal prison in 2021 for his role in a multi-million dollar biofuel fraud scheme that spanned over five years. The case, investigated by the Environmental Protection Agency (EPA) and pursued through the Department of Justice, revealed a complex operation involving falsified production records and the illicit acquisition of renewable fuel credits.
From 2010 to 2015, Tommaso, alongside co-defendant David Dunham, systematically defrauded federal agencies by claiming the production of biofuels that were never actually created or possessed. Dunham, operating through his companies Smarter Fuel and Greenworks Holdings—with Tommaso as an operator of the latter—submitted fraudulent applications and received valuable EPA credits intended to incentivize renewable fuel production. These credits were then sold for profit, generating a substantial illegal income.
The scheme extended beyond the EPA, with Dunham and Tommaso also illegally obtaining millions of dollars from both the Internal Revenue Service (IRS) and the United States Department of Agriculture (USDA) based on the same fabricated production claims. Investigators determined the total fraudulent revenue amassed through these repeated falsehoods reached nearly $50 million. The operation hinged on the manipulation of the Renewable Fuel Standard (RFS) program, designed to encourage the use of domestically produced renewable fuels.
Legal Ramifications
Tommaso was convicted under Title 18 U.S. Criminal Code, specifically 18 U.S.C. 371, which addresses conspiracy to commit offense or defraud the United States. On December 1, 2020, he received a sentence of one year and one day in prison. In addition to his imprisonment, Tommaso was ordered to pay $10,207,000 in restitution, to be shared jointly with Dunham, to compensate for the financial harm caused by the fraud. Furthermore, the court mandated the forfeiture of property totaling $1,072,604.56, representing the ill-gotten gains derived from the illegal scheme.
A Growing Problem
This case highlights a growing concern within the renewable fuel industry – the vulnerability of incentive programs to fraudulent activity. Federal authorities are increasingly scrutinizing biofuel credit markets to prevent similar abuses and ensure the integrity of programs designed to promote sustainable energy. Experts suggest that improved tracking and verification systems are crucial to mitigating the risk of future fraud.
Key Facts
- Defendant: Ralph Tommaso
- Co-Defendant: David Dunham
- State: Pennsylvania
- Years of Fraud: 2010 – 2015
- Total Fraudulent Revenue: Approximately $50 million
- Statute Violated: 18 U.S.C. 371 (Conspiracy to Defraud the United States)
- Sentence: 1 year and 1 day in prison
- Restitution: $10,207,000 (joint with Dunham)
- Forfeiture: $1,072,604.56
GrimyTimes will continue to follow this case and report on any further developments.
Source: EPA ECHO Enforcement Case Database
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