MIAMI — The owner of a Fort Pierce-based biofuel company was sentenced Wednesday to 18 months in federal prison for his role in a scheme that generated more than $7 million in fraudulent Environmental Protection Agency renewable fuel credits and sought more than $6 million in fraudulent tax credits tied to the purported production of biodiesel.
According to court documents, Christopher Burdett owned a company that claimed to convert various feedstocks into biodiesel. Federal prosecutors said Burdett and the company’s general manager, Royce Gillham, significantly overstated the amount of biodiesel the company produced when reporting production figures to the IRS and EPA in order to generate additional credits.
Prosecutors said Burdett and Gillham also provided false information about the company’s fuel production and customers when auditors sought additional documentation.
A federal judge sentenced Burdett to 18 months in prison, followed by two years of supervised release. He was also ordered to pay $2,857,029 in restitution and a $150,000 fine.
“This was not a paperwork error or a regulatory misunderstanding. It was fraud,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “Burdett inflated biodiesel production numbers, misled auditors, generated more than $7 million in fraudulent EPA renewable fuel credits, and sought more than $6 million in fraudulent tax credits from the American taxpayer. Today’s sentence of 18 months makes clear that fraud against public programs carries real consequences. Public incentive programs depend on honesty. When companies lie to regulators and try to turn environmental programs into vehicles for fraud, they will face federal prosecution, prison time, and financial accountability. Fraud does not pay, and defendants do not get to keep the proceeds of their crimes.”
Acting Special Agent in Charge Leslie Carroll of the EPA’s criminal enforcement program in Florida said the fraud affected both the federal government and the renewable fuel marketplace.
“The defendant lied to and defrauded the federal government, fuel producers, and fuel consumers of the United States by claiming and profiting from renewable fuel credits for fuel that was never produced or sold. His actions compromised and undermined a program designed to provide an abundant source of clean renewable fuel,” Carroll said. “Today’s sentencing shows that there are severe consequences for individuals who defraud the Clean Air Act Renewable Fuel Standards program and their customers.”
Acting Special Agent in Charge Scott A. Johnson of IRS Criminal Investigation’s Florida Field Office said fraudulent tax credit claims harm taxpayers.
“Claiming fraudulent tax credits is not just cheating the system — it’s stealing from the American public,” Johnson said. “We will remain committed to protecting taxpayer dollars and ensuring that those who engage in these schemes are held accountable.”
Burdett previously pleaded guilty to conspiring to commit wire fraud and to file false claims.
Gillham was previously sentenced to 37 months in prison for his role in the scheme.
The case was investigated by the EPA’s Criminal Investigation Division and IRS Criminal Investigation. Assistant U.S. Attorney Daniel Funk for the Southern District of Florida and Senior Trial Attorney Adam Cullman of the Justice Department’s Environmental Crimes Section are prosecuting the case on behalf of the government.