Federal officials investigating Evansville based biodiesel compa - 14 News, WFIE, Evansville, Henderson, Owensboro

Federal officials investigating Evansville based biodiesel company

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U.S.  Attorney Joseph Hogsett was in Evansville Wednesday afternoon to announce the findings of a federal indictment involving a local corporation. 

The case involves three corporations. One of them is Imperial Petroleum, a biodiesel company based in Evansville.

Hogsett alleges E-Biofuels, which is located in Middletown, Indiana, but owned by Imperial Petroleum, has been pretending to sell pure B-100 biodiesel to its customers while they're actually selling less valuable biodiesel.

Hogsett says Imperial Petroleum and E-Biofuels falsified records to make it look like they were producing and selling B-100 fuel in order to make more money off of sales.

Hogsett also says E-Biofuels production plant in Middletown was built to merely give the appearance of B-100 production, while they were actually buying B-99 fuel from plants in New Jersey for sale.

"These people believed that they and their businesses were entitled to a free ride on the backs of Indiana taxpayers. I'm here today in Evansville to say unequivocally that the answer to that desire is, 'No,'" Hogsett said.

Hogsett says the total losses to the customers and IRS in this case is over $100 million. He says the perpetrators will be tried in Indianapolis, possibly in November.

Related story:

Multiple people arrested in largest fraud scheme in Indiana history

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