Roxanna, IL – Terry Zintel, formerly a co-owner and operator of Midwest Biodiesel Products, was sentenced to over a year in federal prison for defrauding the Internal Revenue Service (IRS) out of over half a million dollars. The sentencing, handed down on April 17, 2019, marks the culmination of an investigation into the biofuel plant’s financial dealings between 2012 and 2014.
Zintel, a 50% owner of the Roxanna, Illinois-based Midwest Biodiesel Products, allegedly submitted at least three fraudulent claims for excise tax refunds to the IRS in 2013. These claims, along with others uncovered during the investigation, resulted in a total tax loss of $531,947.75. Authorities allege Zintel knowingly falsified documents and information provided to the IRS to illegally obtain these refunds.
Biofuel Plant Under Scrutiny
Midwest Biodiesel Products, once touted as a contributor to renewable energy initiatives, has been plagued by financial and legal issues in recent years. While the specifics of the plant’s overall financial health remain largely undisclosed, Zintel’s sentencing adds another layer of scrutiny to the operation. The case raises questions about oversight within the renewable fuel industry and the potential for abuse of tax credit programs.
Legal Ramifications & Sentencing
Zintel was convicted on three counts of falsifying claims, a violation of Title 18 U.S. Criminal Code, specifically 18 U.S.C. 287, which addresses fraudulent claims against the United States government. He received a sentence of one year and one day in prison. In addition to his imprisonment, Zintel was ordered to pay full restitution to the IRS in the amount of $531,947.75, effectively requiring him to repay the fraudulently obtained funds.
Investigation & Prosecution
The investigation was led by federal authorities, with the assistance of the EPA’s Criminal Investigation Division. While the EPA’s involvement isn’t typical in tax fraud cases, it suggests potential environmental compliance issues may have also been a factor in the broader scrutiny of Midwest Biodiesel Products. The case was prosecuted by the U.S. Attorney’s Office, demonstrating the federal government’s commitment to pursuing financial crimes, particularly those involving public funds.
Looking Ahead
The Zintel case serves as a stark reminder of the consequences of tax fraud and the importance of accurate financial reporting. It remains unclear if further investigations into Midwest Biodiesel Products or other individuals associated with the company are underway. However, this conviction signals a willingness by law enforcement to hold those who exploit tax incentives accountable for their actions.
Key Facts
- Defendant: Terry Zintel
- Crime: Tax Fraud (Falsifying Claims)
- Location: Roxanna, Illinois (Midwest Biodiesel Products)
- Year of Sentencing: 2019
- Statute Violated: 18 U.S.C. 287
- Tax Loss to IRS: $531,947.75
- Sentence: 1 year and 1 day imprisonment, $531,947.75 restitution
Source: EPA ECHO Enforcement Case Database
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