Logan, OH – William Bradley, along with three co-conspirators, received a lengthy prison sentence this week for their involvement in a multi-million dollar biodiesel fraud scheme. The group falsely claimed to be producing renewable fuel, illegally pocketing tax credits and selling fraudulent environmental credits, known as Renewable Identification Numbers (RINs). The case, investigated by a coalition of federal agencies including the EPA’s Criminal Enforcement Program and the IRS Criminal Investigation, highlights a growing trend of fraud within the renewable energy sector.
Bradley, 58, of Florida, was sentenced to 51 months in federal prison after pleading guilty to conspiracy to commit wire fraud and to defraud the United States. The scheme originated with New Energy Fuels LLC in Waller, Texas, before relocating to Chieftain Biofuels LLC in Logan, Ohio. Prosecutors detailed how the defendants purchased low-quality feedstock and subjected it to minimal processing, resulting in a fuel that did not meet industry standards for biodiesel. Despite this, they fraudulently represented the fuel as biodiesel to the EPA, generating and selling over $15 million in bogus RINs.
The fraud extended beyond the RIN market. The defendants also illegally claimed over $7 million in biodiesel tax credits, which are designed to incentivize the production of legitimate renewable fuels. These credits, worth $1 per gallon, were claimed despite the defendants’ inability to demonstrate compliance with IRS regulations and industry standards. The scheme exploited a system intended to promote energy independence and reduce the environmental impact of transportation fuel.
Environmental Concerns & Hazardous Waste
The operation at Chieftain Biofuels wasn’t just a financial crime; it also presented an environmental hazard. The biodiesel production process generated significant quantities of hazardous waste. Dean Daniels, a key figure in the scheme, arranged for the illicit disposal of this waste, directing an employee to dump it at night near Houston, Texas. That employee, Lonnie Perkins, previously faced charges related to illegal hazardous waste dumping.
Federal Response & Penalties
The investigation, led by the Department of Justice’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Southern District of Ohio, resulted in substantial penalties for all involved. Dean Daniels received the longest sentence – 63 months – while Richard Smith and Brenda Daniels were sentenced to 41 months and 366 days respectively. In addition to their prison terms, the court ordered all four defendants to collectively pay $23 million in restitution.
Key Facts
- Defendant: William Bradley, Dean Daniels, Richard Smith, Brenda Daniels
- Location: Logan, Ohio (Chieftain Biofuels LLC) and Waller, Texas (New Energy Fuels LLC)
- Years Active: 2009-2011 (Tax Credit Fraud)
- Fraudulent RIN Sales: Over $15 million
- False Tax Credit Claims: Over $7 million
- Restitution Ordered: $23 million
- Statutes Violated: Clean Air Act, Title 18 U.S. Criminal Code, 49 U.S.C. 5124, 18 U.S.C. 371
- Penalties: Sentences ranging from 366 days to 63 months incarceration, plus $23 million in restitution.
“This case sends a clear message that those who attempt to defraud federal programs and harm the environment will be held accountable,” stated Acting Special Agent in Charge Jeffrey Martinez of the EPA’s Criminal Enforcement Program. “The integrity of programs like the Renewable Fuel Standard is crucial for achieving our environmental goals, and we will continue to work with our partners to vigorously pursue those who seek to undermine them.”
Source: EPA ECHO Enforcement Case Database
Related Federal Cases
- Robert Gordon, Healthcare Fraud, FL, 2023 · Florida
- Clarence Cornwell, Bank Fraud and Money Laundering, Lorain OH, 2023 · Florida
- Angelique Bankston, 84-Count Superseding Indictment for Fraud and M… · Florida
- Corisa J. Tolford, Bank Fraud, OH, 2023 · Florida
- Bradley Bowman, IRS Defraud Scheme, Lighthouse Point FL, 2023 · Utah
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime