US arrests man accused of selling $50m in phony biofuel credits

24 July 2012 00:12  [Source: ICIS news]

HOUSTON (ICIS)--The US arrested the head of a company it accused of selling more than $50m (41.5m) worth of fraudulent biodiesel credits, a government spokeswoman said on Monday.

The so-called Renewable Identification Numbers (RINs) serve as credits for the production and blending of renewable fuels. They are used for compliance purposes under the Renewable Fuels Standard (RFS) regulations of the Environmental Protection Agency (EPA).

Last week, the US arrested Jeffrey Gunselman, the chief executive of Absolute Fuels, the spokeswoman said.

The US alleged that Gunselman and his company, Absolute Fuels, created and sold credits for biodiesel that was never produced, according to an affidavit filed in US District Court, Northern Texas District.

The alleged fraud took place from January 2010 to October 2011, the US said.

In fact, Gunselman did not have a plant capable of producing biodiesel, the US alleged. Instead, Gunselman's business consisted solely of producing false RINs and marketing them to brokers and oil companies, the US alleged.

In all, the US alleged that Gunselman prepared 56 invoices for 58 RIN sales, billing the customers more than $50m.

Additional reporting by Brian Ford

($1 = €0.83)

By: Al Greenwood
+1 713 525 2645

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