COLORADO
A Colorado resident was sentenced to six years and 11months in prison on Friday for his role in a biodiesel tax credit fraud scheme, federal officials announced Monday.
According to the evidence, Matthew Taylor and his co-conspirators defrauded the federal government by filing false claims for tax credits under a federal program that encourages the production and use of renewable fuels.
They created a fake company, Shintan Inc. (Shintan), that purported to be in the business of creating renewable fuels, officials stated.
In addition to the prison sentence, U.S. District Chief Judge Philip A. Brimmer ordered Taylor to pay about $7.2 million in restitution to the United States.
From 2010 to 2013, the coconspirators then sought and obtained from the Internal Revenue Service (IRS) over $7.2 million in tax credits for renewable fuel produced, of which Taylor personally received $4.5 million, officials stated.
In fact, Shintan produced no qualifying renewable fuel.
To avoid detection, Taylor and coconspirators transferred the fraudulently obtained funds through a series of bank accounts belonging to Shintan and other shell companies.
“Filing false renewable fuel tax credit claims is not just a crime against the IRS but a crime against all taxpaying citizens,” said Andy Tsui, IRS–Criminal Investigation Special Agent in Charge. “Those engaged in this fraud should stop in their tracks and look at the consequences which include being sent to prison as a convicted felon and paying back all the taxes owed plus steep penalties and interest.”
On Feb. 27, 2019, Taylor plead guilty to one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering, and one count of money laundering.