Biofuels Producers Sentenced in Fraud Case

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The co-owners of a Waterloo-based biofuel producer have been formally sentenced after pleading guilty to conspiracy and fraud charges. The U.S. Department of Justice says Fred Witmer and Gary Jury will serve 57 months and 30 months in prison, respectively after generating more than $60 million in fraudulent tax credits and renewable fuels credits.

Witmer and Jury owned Triton Energy LLC and Gen2 Renewable Diesel LLC, which were used to "run a sophisticated shell game and exploit the Alternative Fuel Credit program," according to Don Fort, chief of the Internal Revenue Service's Criminal Investigation. Officials say Witmer claimed the credits on fuel he said was used for transportation, but later admitted was sold for other uses such as the production of fire starter logs.

"The defendants purposefully defrauded the federal government, taking illegal advantage of a program created by Congress to help our nation achieve energy, economic, and environmental goals," said Acting Assistant Attorney General Jeffrey Wood of the DOJ's Environment and Natural Resources Division. "These crimes have been prosecuted to the fullest extent, and our actions here demonstrate that the Justice Department will continue to prosecute fraud in the RIN markets."

Witmer and Jury entered guilty pleas in October 2016. 

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