Enforcement

Summary of Criminal Prosecutions

FISCAL YEAR: 2013

1. PRINCIPAL DEFENDANT: Rodney Rashawn Hailey
D. Maryland 1:11-CR-00540-WDQ

Hailey owned Clean Green Fuel, LLC, located in the Baltimore, Md. area. Hailey registered Clean Green Fuel with EPA under the Renewable Fuel Standard (RFS) program as a producer of bio-diesel fuel, a motor vehicle fuel derived from renewable resources. To encourage the production of renewable fuel and lessen the nation’s dependence on foreign oil, all oil companies that market petroleum in the U.S. are required to produce a given quantity of renewable fuel or to purchase credits, called renewable identification numbers (RINs) from producers of renewable fuels to satisfy their renewable fuel requirements.

Between March 2009 and December 2010, Hailey engaged in a massive fraud scheme, selling over 35 million RINs (representing 23 million gallons of bio-diesel fuel) to brokers and oil companies, when in fact Clean Green Fuel had produced no fuel at all and Hailey did not have a facility capable of producing bio-diesel fuel.

November 8, 2011

Hailey was charged with wire fraud, a violation of 18 U.S.C. 1343; Engaging in monetary transactions in property derived from specified unlawful activity, a violation of 18 U.S.C. 1957; and violating the CAA {42 U.S.C. 7413(c)(2)(A) - knowingly makes false statements}.

CITATION: 18 U.S.C. 1343, 18 U.S.C. 1957, 42 U.S.C. 7413(c)(2)(A)

June 25, 2013

Hailey was convicted of 8 counts of wire fraud, 32 counts of money laundering, and 2 counts of violating the Clean Air Act.

February 22, 2013

Hailey was sentenced to 12 years and 6 months incarceration and ordered to pay restitution of approximately $ 42.2 million to over 20 companies and forfeit $9.1 million in proceeds from the fraud, including cars, jewelry, his home and bank accounts, seized by the government.