Feds allege more than $100M biofuels scam

By: Associated Press Email
By: Associated Press Email

INDIANAPOLIS Federal authorities have arrested six people on wire fraud and other charges in a biofuels scam that allegedly cost the government and investors more than $100 million.

Indictments allege the defendants sold more than 35 million gallons of fuel as 100 percent biofuel when it actually contained some petroleum diesel.

U.S. Attorney Joe Hogsett says Middletown, Ind.-based E-Biofuels purchased biodiesel containing about 99 percent biofuel with a small amount of diesel from two New Jersey companies and sold it at a higher price by claiming it was 100 percent biofuel.

Hogsett says customers were defrauded of more than $55 million, the Internal Revenue Service lost $35 million and investors lost tens of millions of dollars.

The defendants were released after court hearings. Calls seeking comment were left with their attorneys.

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