The Herald Bulletin

Afternoon Update

Local Business

October 5, 2013

Biofuel equipment sold from company accused of historic fraud scheme

Former town official says he does not believe company planned to defraud anyone


Prosecutors say that in May of 2010, the value of the RINs being sold by the Middletown plant added approximately $0.42 to each gallon of biodiesel. The RIN prices peaked in September 2011, adding $2.95 to each gallon the company sold.

In the summer of 2007, E-Biofuels reported a production of biodiesel fuel with an annual capacity of 5 million gallons and said they planned to increase their production to 25 million gallons within six months.

Jake Smith was the Middletown Town Council president when E-Biofuels originally pitched its business proposal to town officials.

“I am disappointed, of course,” Smith said. “I think they had a pretty sound business plan. I don’t think in the beginning there was intent to defraud anyone.”

Smith left the council in 2010.

“It’s always not a good thing to lose a business,” he said. “Every little town across the state needs all the businesses they can get. That is essential to keep the tax base up.”

Chad Ducey, CEO, and his brother, E-Biofuels president Craig Ducey, presented the business plan to Smith and the town council. The brothers were former civil engineers who were purchasing “choice white grease” from animal processors and separating the product in a process called “transesterification,” turning the grease into a biodiesel which can then be mixed in various blends of standard diesel fuel.

As part of its package to bring the biofuel company to Henry County, local government officials brought the company a $40,000 grant to go along with a $10,000 grant of its own to finance infrastructure. Seven months after receiving the county grant, Chad Ducey said the money disappeared. In a story in The Herald Bulletin, Ducey said, "It was a miscommunication between Henry County, the town of Middletown and E-Biofuels. That is all that I would like to say about this situation. I think the town will still benefit from this program."

Text Only
Local Business
  • Charo Boyd: 'My Social Security' simplifies your life So many people buzz through extremely busy and complicated schedules these days. A smartphone in one hand, a computer in front of you, and a digital task list that never seems to end. In addition, to complicate things just a little more, there’s another event you need to add to your list — National Simplify Your Life week.

    July 28, 2014

  • nws - hb0725 - colts - jc - 4.jpg Colts camp's impact: pricey or priceless?

    Football fever is here and the city is flooded with fans eager to catch a glimpse of a favorite player. But officials say they are unclear what kind of economic impact the Indianapolis Colts training camp has on the area.

    July 26, 2014 1 Photo

  • BIZ - HB0727 - Skill gap 2 Seeking a solution today, not tomorrow Tina Warner-Morton says she wants to open her own healthcare business because it is too difficult to work for an employer with unclear employee expectations.

    July 26, 2014 1 Photo

  • BIZ - HB0727 - Cathy Cupboard Biz Profile Business Profile: Cathy's Cupboard focuses on customer satisfaction Cathy McPhearson opened her first storefront in June, but this is not her first venture into business. “I have always wanted to have my own business,” she said. “The problem was finding what people like, but everyone seems to like candles.”

    July 26, 2014 1 Photo

  • IU Health Ball Memorial Hospital named Level III trauma center The Trauma Center at Indiana University Health Ball Memorial Hospital has been verified as a Level III Trauma Center by an ad hoc committee of the Committee on Trauma (COT) of the American College of Surgeons.

    July 26, 2014

  • Clark, Big Joe mug 'Big Joe' Clark: Beat the market or meet your goals? True or not, my experience tells me that goals – especially when written down – undoubtedly serve as catalysts for success. However, danger arises when a goal does not properly focus on the long term result you expect.

    July 25, 2014 1 Photo

  • DSC_8125.JPG Auction teaches in business, farming

    After 10 years of 4-H, saying goodbye to his animals has become a simple matter for McKennon Heald. But he said he wouldn't be surprised to see some tears from some of the younger participants. He's been there.

    July 25, 2014 2 Photos

  • Anderson, Alexandria and Elwood receive grants to tear down abandoned houses Three Madison County cities — Anderson, Alexandria and Elwood — received state grants that will be used to tear down abandoned, dilapidated houses.

    July 25, 2014

  • NWS - HB0715 - Chuck Pagano Pagano breakfast sold out A breakfast with Indianapolis Colts head coach Chuck Pagano is sold out, organizers said Wednesday.

    July 23, 2014 1 Photo

  • Cellular Connection to host backpack giveaway Residents in Anderson will benefit from a national backpack giveaway campaign on Aug. 2.

    July 23, 2014

Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide