Colorado Business Owner Pleads Guilty to $7 Million Biodiesel Tax Credit Fraud Scheme
A Colorado business owner pleaded guilty today to conspiracy to impair and impede the Internal Revenue Service (IRS) for his role in a $7.2 million renewable fuel tax credit scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Calvin Glover of Parker, Colorado, owned Colorado-based renewable fuel company, Shintan, Inc. Glover conspired with others to file more than $7 million in false claims for refundable fuel tax credits with the IRS. Glover signed at least 23 false tax returns that claimed over $7.2 million in bogus refundable biodiesel mixture tax credits. Based on these false claims, the IRS issued over $7 million in refunds to Shintan Inc. After receiving the refunds checks, Glover deposited the checks into a bank account that he controlled and then transferred the proceeds to his co-conspirators.
In response to two grand jury subpoenas issued during the investigation, Glover provided false documents and information to investigators and met with co-conspirators to concoct a false story, all intended to obstruct the IRS’ ongoing criminal investigation.
Glover faces a maximum sentence of 5 years in prison, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation and Environmental Protection Agency Criminal Investigation Division, who investigated the case, and Tax Division Trial Attorneys Leslie A. Goemaat and Arthur J. Ewenczyk, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website: www.justice.gov/tax.