On Monday, it was announced that the former Chief Executive Officer of Michigan BioDiesel had been sentenced to prison on two counts of federal tax evasion. 66-year-old John Gerald Oakley has been sentenced to a year and a day in prison, after he pleaded guilty to two counts of federal tax evasion. The resident of Dimondale, Michigan was the CEO of Michigan BioDiesel, which operates out of Bangor, Michigan.
At the time, the company claimed it was producing “an alternative fuel mixture”, which allegedly made it eligible as an excise tax-exempt fuel. For his involvement in the scheme, Oakley has been ordered to pay $1,923,443.50 to the Internal Revenue Service. The restitution includes $1,867,122.50 of tax refunds that were improperly sent to Michigan BioDiesel.
The remaining $56,000 accounts for personal federal taxes owed by the defendant. Co-defendant, 50-year-old Tracy Darin Daniels of Mississippi, was sentenced to two years of probation. He previously pleaded guilty to misprision of bankruptcy fraud. It was discovered that Daniels provided Oakley with false documents.
Oakley then submitted those documents to a Bankruptcy Court in the Western District of Michigan.