Thomas Davanzo, Robert Fedyna Sentenced in Biodiesel Fraud Scheme

Thomas Davanzo of Estero, Florida, and Robert Fedyna of Naples, Florida, were sentenced to 121 and 135 months in federal prison, respectively, for running a sprawling, multi-state biodiesel fraud scheme that ripped off U.S. taxpayers and renewable energy markets. The pair orchestrated a complex conspiracy from March 2013 to March 2014, exploiting federal biofuel credit programs to generate over $46 million in illicit proceeds—money they spent on Rolex watches, gold coins, thoroughbred horses, luxury vehicles, and properties.

Davanzo and Fedyna operated a web of shell companies to disguise their fraud. They colluded with Gen-X Energy Group of Pasco, Washington, and its subsidiary Southern Resources and Commodities (SRC) in Dublin, Georgia, to recycle already-credited biodiesel. Pretending the used fuel was fresh feedstock, they sold it back into the production cycle, allowing the same fuel to generate Renewable Identification Numbers (RINs) multiple times. This shell game created at least 60 million fraudulent RINs—serial numbers used to verify legitimate biofuel production—worth over $42 million on the open market.

The paperwork trail was a fiction. False invoices, forged bills of lading, and fake shipping records were manufactured to make it appear that renewable fuel and feedstock had been legally bought and transported by tanker. These documents, generated under Davanzo and Fedyna’s direction, gave the illusion of legitimacy to transactions that never truly occurred. The fraud allowed Gen-X to claim an additional $4,360,724.50 in federal tax credits for fuel that either didn’t exist or had already been credited.

Money flowed through a maze of shell company bank accounts, laundered to conceal the source and inflate apparent business activity. The funds cycled through these accounts not to conduct real commerce, but to perpetuate the illusion of a thriving biodiesel enterprise. The scheme spanned multiple states and exploited weaknesses in federal oversight of renewable fuel incentives—programs designed to bolster American energy independence, not enrich fraudsters.

“In their pursuit of personal gain, the defendants perpetrated a multi-state conspiracy that defrauded and undermined a federal program intended to further the energy independence of our nation,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “Today’s sentence is a just punishment for these serious crimes against the American people.”

The investigation was led by the U.S. Secret Service, EPA Criminal Investigation Division, and IRS-Criminal Investigation, with prosecution handled by Assistant United States Attorneys. Kim Lappin, Special Agent in Charge of IRS-CI Tampa, called the case a victory against those who weaponize government programs for personal profit. Both Davanzo and Fedyna were ordered to forfeit all $46 million in ill-gotten gains, along with luxury assets purchased with the proceeds of their crime.