Baltimore, MD – Rodney Rashawn Hailey was sentenced to over twelve years in federal prison in 2013 for orchestrating a multi-million dollar fraud scheme involving the sale of renewable fuel credits, federal authorities announced. Hailey, owner of Clean Green Fuel, LLC, falsely claimed to be a producer of biodiesel, a renewable fuel source, and illegally profited by selling credits to oil companies attempting to meet federal renewable fuel standards.
Between March 2009 and December 2010, Hailey’s company registered with the Environmental Protection Agency (EPA) under the Renewable Fuel Standard (RFS) program. The RFS requires oil companies to either produce renewable fuel or purchase Renewable Identification Numbers (RINs) – credits representing production – from legitimate producers. Hailey exploited this system by selling over 35 million RINs, representing approximately 23 million gallons of biodiesel, despite having no actual fuel production facility and producing no fuel whatsoever.
The scheme involved fabricating documentation and falsely reporting fuel production to the EPA and RIN buyers. These fraudulent RINs were then sold to brokers and oil companies across the country, allowing Hailey to collect substantial payments for a product that never existed. The EPA’s criminal enforcement division, along with the Department of Justice, investigated the case, uncovering the elaborate deception.
Timeline of Justice
Hailey was initially charged on November 8, 2011, with wire fraud (18 U.S.C. 1343), engaging in monetary transactions derived from unlawful activity (18 U.S.C. 1957), and violating the Clean Air Act (42 U.S.C. 7413(c)(2)(A) – knowingly making false statements). Following a trial, he was convicted on June 25, 2013, on eight counts of wire fraud, thirty-two counts of money laundering, and two counts of violating the Clean Air Act. On February 22, 2013, he received a 12-year and 6-month prison sentence.
Forfeiture and Restitution
In addition to the lengthy prison sentence, Hailey was ordered to pay approximately $42.2 million in restitution to over 20 companies defrauded by the scheme. The government also seized and forfeited $9.1 million in proceeds from the fraud, including Hailey’s home, vehicles, jewelry, and bank accounts. The case highlights the EPA’s commitment to combating fraud within the renewable fuel market and ensuring the integrity of programs designed to promote cleaner energy.
Key Facts
- Defendant: Rodney Rashawn Hailey
- Company: Clean Green Fuel, LLC
- Location: Baltimore, Maryland
- Scheme: Sale of fraudulent Renewable Identification Numbers (RINs)
- Fraud Amount: Approximately $42.2 million in restitution owed
- Forfeited Assets: $9.1 million, including property and funds
- Prison Sentence: 12 years and 6 months
- Statutes Violated: 18 U.S.C. 1343 (Wire Fraud), 18 U.S.C. 1957 (Money Laundering), 42 U.S.C. 7413(c)(2)(A) (Clean Air Act – False Statements)
The case serves as a stark warning to those who attempt to exploit environmental programs for personal gain. The Department of Justice and EPA continue to prioritize the investigation and prosecution of such fraudulent activities.
Source: EPA ECHO Enforcement Case Database
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