Florida Man Sentenced for Biofuel Fraud Conspiracy

The General Manager of a company that produces and sells renewable fuel and fuel credits was sentenced today to serve 37 months in prison to be followed by a three-year term of supervised release for his role in a scheme that generated over $7 million in fraudulent Environmental Protection Agency (EPA) renewable fuels credits and sought over $6 million in fraudulent tax credits connected to the purported production of biodiesel.

Royce Gillham worked at a biofuel company based in Fort Pierce, Florida, that claimed to turn various feedstocks into biodiesel. However, when reporting the number of gallons they produced to the IRS and EPA, Gillham and his employer vastly overstated their production volume in an effort to generate more credits. When auditors sought more information from the company, Gillham and his co-conspirators provided false information about their fuel production and customers.

Gillham previously pleaded guilty to conspiring to commit wire fraud and to file false claims.

Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida made the announcement.

EPA’s Criminal Investigation Division and IRS Criminal Investigations investigated the case.

Senior Trial Attorney Adam Cullman of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Daniel Funk for the Southern District of Florida are prosecuting the case.