Florida Man Pleads Guilty to Biofuel Fraud Conspiracy

MIAMI - A Florida man pleaded guilty today 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.

According to court documents, Royce Gillham was the general manager of a biofuel company based in Fort Pierce, Fla., that produced and sold renewable fuel and fuel credits and claimed to turn various feedstocks into biodiesel. When reporting the number of gallons 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 pleaded guilty to conspiring to commit wire fraud and to filing false claims. A sentencing date has not yet been scheduled. He faces a maximum penalty of five years in prison and a $250,000 fine for the conspiracy count. A federal district court judge will determine whether to accept the plea agreement after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Resources Division, Special Agent in Charge Stefanie Hipkins of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and Acting Special Agent in Charge Leslie Carroll of the EPA's Criminal Investigation Division (EPA-CID) made the announcement.

IRS-CI and EPA-CID investigated the case.

Assistant U.S. Attorney Daniel Funk for the Southern District of Florida and Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division's Environmental Crimes Section are prosecuting the case.

You may find a copy of this press release (and any updates) on the website of the United States Attorney's Office for the Southern District of Florida at www.justice.gov/usao-sdfl.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-14046.

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