A previous post discussed a federal indictment of an individual for allegedly selling fraudulent renewable identification numbers (RINs).
The indictment alleged that an individual using the name Philip Joseph Rivkin controlled and operated Green Diesel LLC and claimed that the company produced millions of gallons of biodiesel at its Houston facility then generated and sold about 45 million RINs based on the claim.
However, according to the indictment, Green Diesel did not actually produce any biodiesel at its facility, and the defendant allegedly made millions of dollars selling the fraudulent RINs.
Recently, Rivkin, a.k.a. Felipe Poitan Arriaga, pleaded guilty to making a false statement under the Clean Air Act and to mail fraud for his role in the scheme, which included attempts to defraud the U.S. Environmental Protection Agency.
In the plea agreement, he admitted that he falsely generated renewable fuel credits between July 2010 and July 2011 and sold them to oil companies and brokers, generating over $29 million.
Under the plea deal, Rivkin faces more than 10 years in prison and will be responsible for $51 million in restitution to reimburse victims of the scheme.
Because the fraudulent activity in this case did not involve individual green consumers and consumer products such as water bottles, cleaning supplies, or hybrid vehicles, this would not typically be thought of as a greenwashing case. But the fraudulent activity does represent a serious instance of greenwashing.
The fraud and resulting damage are recognizable when we view the putative RIN purchasers as green consumers, albeit commercial consumers instead of individuals, falling victim to false representations about the validity of renewable energy-based financial products.
You can read more about the guilty plea at Biofuels Digest here and at Biodiesel Magazine here.
