This article needs to be updated.(September 2015) |
United States vs. Imperial Petroleum is a federal criminal case in which Imperial Petroleum and others are accused of passing off RIN-stripped B99 as pure biodiesel.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION v. IMPERIAL PETROLEUM, INC. et al | |
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Court | United States District Court for the Southern District of Indiana |
Full case name | UNITED STATES SECURITIES AND EXCHANGE COMMISSION, UNITED STATES OF AMERICA v. IMPERIAL PETROLEUM, INC.,CARAVAN TRADING,BRIAN CARMICHAEL,CIMA ENERGY GROUP, CIMA GREEN, CHAD DUCEY, CRAIG DUCEY, JOSEPH FURANDO, EVELYN KATIRINA PATTISON,JEFFREY WILSON |
Decided | May 18, 2018 |
Citation | 1:13-cv-1489-WTL-MJD (S.D. Ind. May. 18, 2018) |
Transcript | https://www.govinfo.gov/app/details/USCOURTS-insd-1_13-cv-01489 |
Case history | |
Prior action | SEC's motion for default judgment against Imperial is GRANTED IN PART (September 14, 2018) |
Court membership | |
Judge sitting | William T. Lawrence |
Case opinions | |
Decision by | William T. Lawrence |
On September 19, 2013, Jeffrey T. Wilson, [1] Craig Ducey, Chad Ducey, Brian Carmichael, Joseph Furando, Evelyn Pattison, Caravan Trading LLC, Cima Green LLC, CIMA Energy Group and Imperial Petroleum [2] were indicted in what Joe Hogsett referred to as "the largest instance of tax and securities fraud in state history" (in Indiana). E-Biofuels of Middletown, Indiana is also under investigation for the case. Per the Energy Independence and Security Act of 2007, a tax subsidy was offered to the very first person or organization to mix pure biodiesel (B100) with petroleum diesel. The individuals are accused of fraudulently selling over 130 Megaliters of RIN-stripped B99 to clients who paid an artificially augmented dollar amount while believing that they were acquiring B100 with RINs and a tax subsidy. Current estimates of the damages to buyers exceeds $100 million USD, much of which is alleged to be spent on automobiles, art and travel. [3] Wilson and (Craig) Ducey were set to appear in federal court in March 2014. [4]
Robert Dreher of the United States Department of Justice along with Hogsett reported indictments against six people and three companies with respect to renewable fuel program related legal issues. One other individual was charged, and has agreed to plead guilty and to work with the government. [5]
Craig Ducey, Chad Ducey, Chris Ducey and Brian Carmichael were in charge of E Biofuels, a manufacturer of biodiesel made using "feedstocks" such as vegetable oil and animal fat. It is alleged that the Ducey's and Carmichael worked with Joe Furando and Evelyn Katirina Pattison who both led a pair of companies called Caravan Trading Company and CIMA Green to buy RIN-stripped B99 and give the impression that E-Biofuels manufactured the fuel in order to falsely resell it as B100 with RINs coupled with a tax subsidy (acting only as a pass-through establishment). [5]
Ducey and Wilson were sentenced to 74 months and 120 months in jail. [6]
The allegations made are as follows:
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