PRESIDENT OF TORCO RACING FUELS, INC. SENTENCED TO
168 MONTHS’ INCARCERATION
GRAND RAPIDS, MICHIGAN – Evan Ward Knoll, the founder, owner and former president of Torco Racing Fuels, Knoll Gas Motor Sports and General Sales and Service, was sentenced to 168 months’ incarceration and five years supervised release by U.S. District Court Judge Robert J. Jonker. In addition, Judge Jonker also ordered Knoll to pay a special assessment of $900 and restitution to the Internal Revenue Service (IRS) of $82,933,652.95. Knoll was indicted on the federal charges in August, 2011. Knoll admitted in his guilty plea to making false “excise tax” refund claims with an intent to defraud the U.S. Treasury and local banks of over $100,000,000.
U.S. Attorney Patrick Miles affirmed his office’s commitment to protect the integrity of the U.S. Treasury and to vigorously pursue tax cheats. “It is shocking how much federal tax money was stolen by this defendant. Evan Knoll lied to banks, accountants, business partners, his employees, the community he lived in and to the Internal Revenue Service for many years,” said U.S. Attorney Miles.
Knoll fraudulently exploited a refund program applicable to the federal “excise tax” of 18.3 cents per gallon on all automotive gasoline sold in the United States. That excise tax primarily funds highway construction. But where the gasoline is used for an “off road” purpose, such as drag-racing, the “off road” user who paid the tax can apply for a federal tax refund. Knoll filed false IRS forms over many years in which he falsely claimed to have purchased massive quantities of racing fuel, all of which resulted in refund payments of over $80,000,000. In addition, Knoll also used his refund scheme to commit bank fraud: he obtained a series of bank loans primarily based on his fraudulently obtained refund checks. When the IRS stopped the scheme, Knoll was unable to make the payments on his bank loans. The banks suffered losses of over $10,000,000.
Knoll pled guilty in July to eight charges of making false claims against the United States and to one count of bank fraud.
The IRS-Criminal Investigation uncovered the scheme and, with the assistance of the
U.S. Secret Service, investigated it. “Mr. Knoll’s perceived success in the racing industry was
based on the money he was stealing from the American people. Mr. Knoll now faces severe
consequences for his actions,” said Erick Martinez, Special Agent in Charge, IRS-Criminal