In Pennsylvania, David Tielle, who served as Director Business Development at Keystone Biofuels Inc. (Keystone), pleaded guilty Wednesday in federal court to one count of conspiring to defraud the Internal Revenue Service. Keystone purported to be a producer and seller of biodiesel. Between 2009 and 2012, Tielle participated in a conspiracy to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit.
As part of the conspiracy, Tielle caused inflated fuel amounts to be reported to the IRS in order to fraudulently claim tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Tielle created false books and records and engaged in a series of sham financial transactions intended to mirror the false books and records. Tielle also caused Keystone to fraudulently claim tax refunds on fuel that did not meet the quality standards needed to qualify for the Biodiesel Mixture Tax Credit and on fuel Keystone had not mixed with petroleum. The total loss resulting from Tielle’s conduct is approximately $4,149,983.41.
Category: Producer News