Florida man pleads guilty to biodiesel fraud conspiracy

The owner of a company that produces and sells renewable fuel and fuel credits pleaded guilty Feb. 4 to conspiracy for his role in a scheme that generated over $7 million in fraudulent U.S. EPA renewable fuels credits and sought over $6 million in fraudulent tax credits connected to the purported production of biodiesel. 

According to court documents, Christopher Burdett, 59, owned a biofuel company based in Fort Pierce that claimed to turn various feedstocks into biodiesel.  

When reporting to the IRS and EPA the number of gallons produced, however, Burdett and his company vastly overstated the production volume to generate more credits.  

When auditors sought more information from the company, Burdett and general manager Royce Gillham, who was sentenced last year to 37 months in prison, provided false information about their fuel production and customers. 

“The defendant’s fraud undermines the integrity of EPA’s Renewable Fuel Standard and hurts farmers and refiners who follow the law,” said Adam Gustafson, principal deputy assistant attorney general of the justice department’s environment and natural resources division. “This guilty plea is another example of the justice department’s broader efforts to hold those accountable, like Burdett and Gillham, who defraud American taxpayers.” 

Jason A. Reding Quiñones, U.S. attorney for the southern district of Florida, added, “This was not a paperwork error or a regulatory misunderstanding—it was fraud. The defendant inflated production numbers to steal millions in fuel and tax credits, taking money straight from taxpayers. Working closely with our partners at EPA and IRS, we will continue to hold accountable anyone who lies, cheats and tries to game federal programs for personal profit.” 

Jeffrey Hall with EPA’s enforcement office said, “The defendants compromised the core of a program designed to secure abundant renewable fuel. By claiming credit (RINs) for fuel they never produced or sold, the defendants not only defrauded American fuel producers and consumers but also compromised our energy security. Lying to the federal government and to others under federal programs for profit is an elemental federal crime and intolerable in our society.” 

Ron Loecker, an IRS special agent, added, “Fraudulent tax schemes erode trust in our tax system and harm every honest taxpayer. Our mission is to ensure that those who attempt to exploit tax credits are identified and brought to justice, protecting the integrity of our nation’s tax laws.” 

Burdett pleaded guilty to conspiring to commit wire fraud and to file false claims.  

He is scheduled to be sentenced in the coming months.  

The conspiracy count has a maximum penalty of five years in prison and a $250,000 fine.  

A federal district court judge will determine whether to accept the plea agreement after considering the U.S. sentencing guidelines and other statutory factors.