Biodiesel Fraud Suit Nets $70 Million for Whistleblower, Feds

E-Biofuels LLC and other defendants face a $70 million liability for violating the False Claims Act by engaging in a scheme to defraud the EPA’s renewable fuel program, an Indiana federal court said.

Alexander Chepurko’s whistleblowing efforts allowed the government to criminally prosecute some defendants in this case for their roles in a multi-state scheme to defraud biodiesel buyers and taxpayers by fraudulently selling biodiesel incentives, Judge Tanya Walton Pratt said in a decision released Thursday.

The damages in this case were “easily ascertainable” given findings in prior criminal proceedings against defendants, the court said.

The renewable fuel program requires ...