Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Wind, hydro and other renewables · United States · 2010–2023

Washakie Renewable Energy, the Kingston family and Dermen: biodiesel tax credits and RINs (United States, 2010–2018)

Short record: the main facts, with sources. A full case file has not been prepared.

Nature's voice · report
More than 511 million US dollars were paid in subsidies in my name. No one has measured what reached me.
Did nature suffer? Not measured.
Not on record
  • The record does not name which of my species, waters, soils or forests were harmed.
What the record lacks: 1 none on record · 1 insufficient · 1 not measured See the gaps

A federal criminal case concerned biodiesel tax credits and renewable identification numbers (RINs) claimed for fuel that was rotated through shipments and exports on altered documents. The Internal Revenue Service paid more than $511m; Dermen was found guilty after a jury trial in 2020 and sentenced to 40 years in April 2023, and Jacob Kingston to 18 years.

more than $511mTax credits paid by the Internal Revenue Service
More than $1bn in credits was claimed; RINs were sold for about $65m (EPA) and more than $3bn in laundering transactions is recorded.

Status As of October 2026: convictions and sentences (April 2023) are on record; no appeal outcome is recorded in the sources reviewed.

What?
Tax credits and RINs claimed for biodiesel presented as new production, which the case record describes as fuel rotated through shipments and exports on altered documents. US Department of Justice
Where?
United States, with exports routed through Panama. US Department of Justice
When?
About 2010 to 2016/2018; convicted after a 2020 trial; sentenced in April 2023. US Department of Justice
Who?
Gained
  • Dermen and members of the Kingston family (sentenced in 2023) — The case record lists tax credits of more than $511m paid and RINs sold for about $65m US Department of Justice
Lost
Harmed
None on record
Why?
Tax credits and RINs were issued on biodiesel production and sale; the case record states that the fuel was shown as newly produced when it was not. US Department of Justice
How?
Biodiesel bought from others was rotated through shipments and exports (Panama) with altered documents so that it appeared as new production. US Department of Justice
6 of 6 questions answered from the record

What happened

The record, in order.

Washakie Renewable Energy and members of the Kingston family, together with Dermen, were the subject of a federal criminal case over biodiesel tax credits and renewable identification numbers (RINs), covering about 2010 to 2016–2018. The case record, as summarised in the sources reviewed, describes biodiesel bought from others and "rotated" through shipments and exports, including to Panama, with altered documents so that the same fuel appeared as new production. Tax credits were claimed and RINs generated on that basis.

More than $1bn in credits was claimed and the Internal Revenue Service paid more than $511m. The Environmental Protection Agency records RINs sold for about $65m. The case record also lists more than $3bn in laundering transactions. Dermen was found guilty after a seven-week jury trial in 2020 of mail-fraud conspiracy, money-laundering conspiracy and money laundering.

In the week to 7 April 2023 Dermen was sentenced to 40 years, with restitution of $442,615,520 and a $181m money judgment. Jacob Kingston received 18 years, with $511m restitution and a $338m money judgment. Isaiah Kingston received 12 years, Rachel Kingston 7 years and Sally Kingston 6 years. Other US RIN prosecutions on record include Gunselman (Absolute Fuels, 188 months and more than $54.9m restitution), Hailey (Clean Green Fuel, Maryland, convicted in 2012, 151 months), Rivkin (Green Diesel, 121 months in 2016), Keystone Biofuels (jury verdict in April 2019) and Oputa (40 months in 2023).

  1. 2010Period of the scheme begins (recorded as 2010 to 2016/2018)
  2. 2020Dermen found guilty by a jury, after a seven-week trial, of mail-fraud conspiracy, money-laundering conspiracy and money laundering
  3. 2023Dermen sentenced to 40 years, Jacob Kingston to 18, Isaiah Kingston to 12, Rachel Kingston to 7 and Sally Kingston to 6 (week to 7 April)

How it looked

What was shown, beside what was recorded.

Shown

    Recorded

    • More than $1bn in tax credits claimed; the Internal Revenue Service paid more than $511m; RINs sold for about $65m (EPA); more than $3bn in laundering transactions.
      US Department of Justice
    • EPA's FY2023 criminal enforcement summary is a second source for these case figures.
      US Environmental Protection Agency
    • Dermen: 40 years, restitution $442,615,520 plus a $181m money judgment. Jacob Kingston: 18 years, $511m restitution plus a $338m money judgment. Isaiah Kingston 12 years, Rachel Kingston 7 years, Sally Kingston 6 years (April 2023).
      US Department of Justice
    • Gunselman (Absolute Fuels, Texas): sentenced to 188 months in federal prison, fined $175,000 and ordered to pay more than $54.9 million in restitution after pleading guilty to 51 counts of wire fraud, 24 counts of money laundering and four counts of making false statements under the Clean Air Act (EPA, 2013).
      US Environmental Protection Agency (archived 19 January 2021)
    • Hailey (Clean Green Fuel, Maryland): convicted by a jury on 25 June 2012 of wire fraud, money laundering and a Clean Air Act violation for selling over 35 million RINs for at least $9 million without producing fuel (US Attorney's Office, District of Maryland); sentenced in February 2013 to 151 months, $42 million restitution and $9 million forfeiture (EPA).
      US Department of Justice (US Attorney's Office, District of Maryland)
    • A National Law Review article of 8 July 2012 described the Hailey case as the first criminal prosecution concerning the fraudulent generation of renewable fuel credits.
      The National Law Review (Susan M. Cooke, McDermott Will & Schulte LLP)
    • Rivkin (Green Diesel, Houston): pleaded guilty in June 2015 to one count of mail fraud and one count of making a false statement under the Clean Air Act; sentenced on 7 March 2016 to 121 months in prison, ordered to pay more than $87 million in restitution and to forfeit $51 million; over 60 million fraudulent RINs, no biodiesel produced at the facility.
      US Department of Justice (Environment and Natural Resources Division)
    • Keystone Biofuels (Pennsylvania): on 24 April 2019 a jury found owners Ben T. Wootton and Race A. Miner and the company guilty of conspiring to make false statements to the EPA, making false statements and conspiring to defraud the IRS; the scheme ran from August 2009 through September 2013.
      US Department of Justice (US Attorney's Office, Middle District of Pennsylvania)
    • Oputa (Los Angeles): pleaded guilty and was sentenced on 19 May 2023 to 40 months for wire fraud over fraudulent RINs generated from 2017 through 2021 on biofuel never imported; sold for about $426,000; restitution of about $462,200 and $33,600 to two victims.
      US Department of Justice (US Attorney's Office, District of Columbia)

    In nature's name

    What was promised in nature's name, the money that moved, and what was measured.

    Money moved in nature's name

    WhatKindAmountPeriod
    Tax credits paid by the Internal Revenue Service
    Internal Revenue Service
    US Department of Justice    		Subsidy> $511m2010–2018
    Tax credits claimed
    Washakie, Kingston family and Dermen (as recorded in the case)
    US Department of Justice    		Subsidy> $1bn2010–2018
    RINs sold, per the Environmental Protection Agency
    Environmental Protection Agency record
    US Environmental Protection Agency    		Sales≈ $65m2010–2018
    Restitution ordered against Dermen
    Dermen
    US Department of Justice    		Compensation$443mApr 2023
    Money judgment against Dermen
    Dermen
    US Department of Justice    		Penalty$181mApr 2023
    Restitution ordered against Jacob Kingston
    Jacob Kingston
    US Department of Justice    		Compensation$511mApr 2023
    Money judgment against Jacob Kingston
    Jacob Kingston
    US Department of Justice    		Penalty$338mApr 2023

    What was measured

    Not measured

    No independent measurement of emissions or other environmental effect of the biodiesel, the credits or the RINs is on record in the sources reviewed. The production and export figures in the case are those of the criminal record, not an independent measurement.

    Findings on record

    • Court or regulator ruling US federal court (jury verdict) (2020) · Dermen convicted of mail-fraud conspiracy, money-laundering conspiracy and money laundering US Department of Justice
    • Court or regulator ruling US federal court (2023-04) · Sentences: Dermen 40 years; Jacob Kingston 18; Isaiah Kingston 12; Rachel Kingston 7; Sally Kingston 6 US Department of Justice

    Who gained

    Money that reached nature, beside money that stayed elsewhere.

    Reached nature or the ground

    Not published
    No figure published.

    Gained elsewhere

    Not totalled
    Tax credits claimed> $1bn
    Paid by the Internal Revenue Service> $511m
    RINs sold, per the Environmental Protection Agency≈ $65m
    Restitution ordered against Dermen (April 2023)$443m
    Restitution ordered against Jacob Kingston (April 2023)$511m
    Currency: USD · Window: 2010–2018. All figures cover the same period. * Estimate built from cited figures.

    In court and with insurers

    Every proceeding and every insurer decision on record.

    Lawsuits and rulings

    1. 2023-04Claimant won$442.62m Restitution ordered
      United States v. Dermen: mail-fraud conspiracy, money-laundering conspiracy, money laundering
      US District Court for the District of Utah (Judge Jill N. Parrish) · Criminal · United States → Dermen

      A jury found Dermen guilty after a seven-week trial in 2020. In April 2023 he was sentenced to 40 years, with restitution of $442,615,520 and a $181m money judgment. US Department of Justice

    2. 2023-04Claimant won$511m Restitution ordered
      United States v. Jacob Kingston
      US District Court for the District of Utah (Judge Jill N. Parrish) · Criminal · United States → Jacob Kingston

      Sentenced in April 2023 to 18 years, with $511m restitution and a $338m money judgment. US Department of Justice

    3. 2023-04Claimant won
      United States v. Isaiah, Rachel and Sally Kingston
      US District Court for the District of Utah (Judge Jill N. Parrish) · Criminal · United States → Isaiah Kingston, Rachel Kingston, Sally Kingston

      Sentenced in April 2023 to 12, 7 and 6 years respectively. US Department of Justice

    Insurers

    No insurer decision on record.

    What we don't know

    Undisclosed, unproven, untried: recorded as data.
    Court ruling existsBenefit not measured

    Nature

    • Not measured Harm to nature: The record holds no measurement of harm to nature.

    Record

    • Insufficient Unconfirmed: the overseas destinations of the laundered money; the sources reviewed do not give them.
    • None on record Not on record: the exact day of each sentencing; the Justice Department release of 7 April 2023 says the five were sentenced "this week", and the date of the jury verdict is not given in the release.

    Did the harm stop?

    The sources reviewed do not state when the scheme ended; they give the period as 2010 to 2016/2018.

    Who paid?

    The Internal Revenue Service paid more than $511m in credits. In April 2023 restitution of $442,615,520 was ordered against Dermen and $511m against Jacob Kingston, with money judgments of $181m and $338m. No payment to nature or to an environmental fund is on record in the sources reviewed.

    Sources

    Voices on record: — Company or project✓ Government and regulators— Courts✓ Press and investigations— Communities and civil society— Researchers

    Government and regulators

    2. Criminal enforcement FY2023 annual results
      US Environmental Protection Agency · 2023
    3. 2013 Major Criminal Cases
      US Environmental Protection Agency (archived 19 January 2021) ·
    4. Houston Man Sentenced to More Than 10 Years in Prison for Biodiesel Fraud Scheme
      US Department of Justice (Environment and Natural Resources Division) · 2016-03-07
    5. Jury Finds Pennsylvania Biofuel Company Owners Guilty Of Tax And False Statements Conspiracy
      US Department of Justice (US Attorney's Office, Middle District of Pennsylvania) · 2019-04-24
    7. California Man Admits to Fraud Scheme Involving Renewable Fuel Credits
      US Department of Justice (US Attorney's Office, District of Columbia) · 2023-05-19

    Press and investigations

    1. Federal Authorities Obtain First-Ever Criminal Conviction Regarding Fraudulent Generation of Renewable Fuel Credits
      The National Law Review (Susan M. Cooke, McDermott Will & Schulte LLP) · 2012-07-08

    Connected cases

    Related matters, and cases linked to this one through the same organisations, with the role each played in both.
    Terms used on this page

    Institutions

    EPA
    The US Environmental Protection Agency.

    Law and courts

    Plea
    In a criminal case, the defendant's formal answer to a charge. A plea agreement settles a case with a guilty plea on agreed terms.

    Science and environment

    PFOA (C8) and PFAS
    PFAS are a large family of human-made chemicals that persist in the environment and the body; PFOA, also called C8, is one of them and was used to make Teflon.
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