Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

TexasTowelie

(116,301 posts)
Wed May 8, 2019, 05:10 AM May 2019

Owners Of Colorado Biomass Plant Pay $2.6 Million To Resolve Allegations They Defrauded A Renewable

Last edited Wed May 8, 2019, 06:13 AM - Edit history (1)

Owners Of Colorado Biomass Plant Pay $2.6 Million To Resolve Allegations They Defrauded A Renewable Energy Program


DENVER – Three companies and two individuals have agreed to pay a total of $2.6 million to resolve allegations that they violated the False Claims Act by obtaining reimbursements from a federal renewable energy program to pay for costs they never actually incurred, U.S. Attorney Jason Dunn announced today.

Under a program created by Congress in the American Recovery and Reinvestment Act of 2009, companies that place into service “renewable energy properties,” including biomass power plants, can apply to get reimbursements for up to 30 percent of the costs they incurred in placing those properties into service. Companies submitted applications for these payments to the National Renewable Energy Laboratory (“NREL”) in Golden, Colorado. The funds for the reimbursement came from the U.S. Treasury. Those funds were set aside under section 1603 of the 2009 Act, under a program commonly known in the renewable energy industry as the “1603 Program.”

The resolution at issue involves three companies that developed a biomass power plant in Gypsum, Colorado. The companies were Eagle Valley Clean Energy, LLC (“Eagle Valley”), its parent company Evergreen Clean Energy Corporation (the “Corporation”), and Evergreen Clean Energy, LLC (“Evergreen”). Dean Rostrom and Kendric Wait were principals and had ownership interests in the three corporate entities.

The United States contends that in 2014, Eagle Valley applied to the 1603 Program, seeking reimbursement for its investment in the Gypsum plant. As part of its application, Eagle Valley contracted with Evergreen to perform “development services.” The contract entitled Evergreen to a fee based on a percentage of the cost of building the plant. Based on this contract, Treasury reimbursed Eagle Valley 30 percent of the costs associated with the fee Eagle Valley would pay Evergreen under the development services agreement. After receiving these funds from Treasury, Eagle Valley did not pay the fee. Instead, it wrote off the development fee owed to Evergreen, and Evergreen never requested or demanded payment of the fees Eagle Valley owed Evergreen under the contract. Because the fee was written off, Treasury, in effect, reimbursed Eagle Valley for 30% of a payment Eagle Valley never made. Once Eagle Valley decided that it would not be paying the Evergreen the fee for the development services, Eagle Valley was required to notify Treasury and return the money it received. But Eagle Valley never notified Treasury, and the United States alleged that this conduct violated the False Claims Act.

Read more: https://www.justice.gov/usao-co/pr/owners-colorado-biomass-plant-pay-26-million-resolve-allegations-they-defrauded-renewable
2 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Owners Of Colorado Biomass Plant Pay $2.6 Million To Resolve Allegations They Defrauded A Renewable (Original Post) TexasTowelie May 2019 OP
Did the benefits of the fraud outweigh the settlement? OneBro May 2019 #1
Thanks Texas Towelie locks May 2019 #2

OneBro

(1,159 posts)
1. Did the benefits of the fraud outweigh the settlement?
Wed May 8, 2019, 06:07 AM
May 2019

These sorts of announcements rarely note whether the bad guys made so much money on the underlying fraud that the fines just become the cost of doing business. And, of course, no mention of criminal investigations or charges.

locks

(2,012 posts)
2. Thanks Texas Towelie
Wed May 8, 2019, 08:01 PM
May 2019

Corruption and fraud are so wide and deep in every aspect of our lives how can we ever know if justice has been done especially with the amount of regulation that has been cut under this administration.

Latest Discussions»Region Forums»Colorado»Owners Of Colorado Biomas...