EVANSVILLE, Ind. — A southwestern Indiana petroleum company whose president was indicted last fall in an alleged biofuels scam is now the subject of an investigation by federal environmental regulators.
The U.S. Environmental Protection Agency has issued notice of violations against Evansville-based Imperial Petroleum and its wholly-owned subsidiary, Middletown, Ind.-based e-Biofuels.
The Evansville Courier & Press reports the notices allege both companies are liable for e-Biofuels' alleged generation of more than 33.5 million invalid renewable fuel tax credits to producers or importers of renewable fuel such as ethanol or biodiesel.
September's indictments allege that the biofuels scam allowed its participants to charge truck stops and service stations more for fuel than it was worth while the government paid out renewable energy tax credits and other benefits that shouldn't have been paid.