Two Men Charged with Biodiesel RINS Fraud
CorEnergy Acquires Portland Terminal for $ 40 Million
Western Carwash to Join ICA Show
Enviro Vault Acquired by Sundance

TWO MEN CHARGED WITH BIODIESEL RINS FRAUD

LAS VEGAS, NV. — Two men have been indicted by a Federal Grand Jury here, charged with 57 counts of biodiesel RINs fraud in January.

James Jariv, 63, of Las Vegas, and Nathan Stoliar, 64, of Australia, were alleged to have committed criminal acts including conspiracy, wire fraud, false statements under the Clean Air Act, obstruction of justice, and conspiracy to engage in money laundering. It is charged the pair brought in over $37 million in proceeds from their illegal acts.

The indictment alleges that beginning around June of 2009, Jariv and Stoliar operated and controlled City Farm Biofuel in Vancouver, British Columbia, Canada and reported it was a producer of biodiesel from feedstocks such as animal fat and vegetable oils. Jariv also operated and controlled a company based in Las Vegas, called Global E Marketing.

The government alleges that "these defendants claimed to produce biodiesel at the City Farm facility, claimed to import and sell biodiesel to Global E Marketing," and then generated and sold RINs [Renewable Identification Numbers] based upon this claimed production, sale and importation.

"In reality, little to no biodiesel produced at City Farm was ever imported and sold to Global E Marketing as claimed," according to the charges.

The indictment alleges the defendants' scheme allowed them to generate approximately $7 million in RINs that were fraudulent, which were then sold to companies that needed to obtain them.

The indictment also alleges that, beginning in June 2009 and continuing through Dec. 31, 2013, the defendants, using MJ Biofuels, bought over 23 million gallons of B99 biodiesel from companies in the United States. The defendants then sold some of this biodiesel to purchasers in the U.S., claiming it was B100, produced at the City Farm facility and imported into the U.S., and falsely collecting RINs on the product.

"By claiming this biodiesel was B100 and not RIN-less B99, the defendants were able to claim the fuel was eligible to be used to generate credits and incentives, and were able to sell the fuel for significantly more than they otherwise would have been able," stated the courts.

Among the other charges levied at the duo are that the defendants created false records and made false statements to conceal their fraudulent claims of biodiesel production, importation, sale, and fraudulent RIN generation as well as engaging in a conspiracy to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to conceal the illegal nature of the funds they received, and to attempt to protect these funds from government enforcement.

As part of the investigation, the United States seized and restrained on January 16th the assets contained in a number bank accounts utilized by the defendants as well as several pieces of real and personal property in Las Vegas.

Jariv is currently in custody in Las Vegas. Stoliar is in Australia.

Jariv and Stoliar were indicted by the Federal Grand Jury, the Justice Department's Environment and Natural Resources Division's criminal division, and the U.S. Attorney's Office for the District of Nevada.

Agencies involved in the investigation included the EPA's criminal investigation division, the FBI, the U.S. Secret Service, and the Department of Homeland Security.

The court reports the case is being prosecuted by Senior Trial Attorney Wayne D. Hettenbach of the Environmental Crimes Section of the Justice Department's Environment and Natural Resources Division, Assistant U.S. Attorneys Crane M. Pomerantz and Daniel D. Hollingsworth of the U.S. Attorney's Office in Nevada, and Trial Attorney Darrin L. McCullough of the Justice Department's Criminal Division, Asset Forfeiture and Money Laundering Section, with the assistance of the Justice Department's Office of International Affairs.

CORENERGY ACQUIRES PORTLAND TERMINAL FOR $40 MILLION

PORTLAND, OR. — CorEnergy Infrastructure Trust, Inc., a property asset management company, has announced that it has acquired a petroleum products terminal facility here for $40 million in cash.

The terminal will be operated by ARC Logistics Partners under the terms of a 15-year lease.

The Portland Terminal Facility is a 39 acre rail/marine facility property with 84 tanks with a total storage capacity of 1,466,000 barrels. Although it does not occupy river frontage, it is located approximately 1,000 feet south of the Willamette River and marine facilities are accessed through a neighboring terminal facility via an owned pipeline.

"The Portland Terminal is an important addition to our asset base supported by a long term contract with a major oil company," said Vince Cubbage, CEO of Arc Logistics. "Importantly, we expect the Portland Terminal to provide the opportunity for significant incremental growth as additional customers or terminal capabilities are developed."

CorEnergy Infrastructure Trust, Inc. primarily owns midstream and downstream U.S. energy infrastructure assets including pipelines, storage tanks, transmission lines and gathering systems.

The deal closed at the end of January.

WESTERN CARWASH TO JOIN ICA SHOW

SACRAMENTO, CA. — After over 40 years of holding their own trade show, the Western Carwash Association has announced that their 2014 show will be their last.

Instead of holding an independent trade show, the WCA will join with International Carwash Association's trade show, The Car Wash Show.

"WCA has had the longest continuous running car wash trade show in the country," noted 2014 WCA President Brad Hooper of Rossmoor Carwash, Los Alamitos, CA. "This change was made after careful consideration, with a tremendous amount of research, discussion and thoughtful planning. The entire trade show industry is undergoing changes that include collaboration and consolidation."

Hooper continued, "We believe this better defines the role between International and Regional car wash associations, leaving the ICA to produce a trade show that showcases the entire industry while WCA focuses our resources to help our individual members in each state. ICA also believes this is best for the industry and will be supporting WCA's new emphasis on local member issues."

The final WCA "stand alone" trade show will be held in Las Vegas, NV., at the Rio Hotel from October 28-30, 2014.

ENVIRO VAULT ACQUIRED BY SUNDANCE

CALGARY, AB. — Enviro Vault and its associated companies have been acquired by Sundance Holdings Corporation in a deal that closed in December. The price for the purchase of the aboveground tank company was not disclosed.

The new company will be known as EnviroVault and Ian McKinnon, the principal of Sundance Holdings, has joined the company as the new president and CEO. Russ Hebblethwaite, founder and former president of the Enviro Vault group, will act as a director and special advisor to the CEO of EnviroVault Corporation.

McKinnon comes to the petroleum equipment business after a "long and successful career in the oil and gas industry, with over thirty years of experience in mergers and acquisitions, land acquisitions, business development, financing and shareholder relations." As the president of Sundance Holdings, he provided leadership services and management consulting to the oil and gas industry.

"This is an exciting time in our industry, improving environmental and safety standards are important considerations for all companies," said McKinnon. "I am looking forward to the opportunity to work with industry and provide leadership through EnviroVault's technical innovation, experienced staff and strong relationships."

Originally published in the April 2014 issue of O&A Marketing News.
Copyright 2014 by KAL Publications Inc.