Chad, Chris, and Craig Ducey pleaded guilty to conspiracy, false claims against the Internal Revenue Service (IRS), wire fraud and lying to the EPA and the IRS in connection with their roles in a multi-state scheme to defraud biodiesel buyers by fraudulently selling biodiesel incentives.

The Ducey brothers operated Middletown, Indiana-based E-biofuels LLC.  As part of the scheme, they allegedly sold over 35 million gallons of biodiesel to customers for more than $145 million by falsely claiming that the fuel was eligible for federal renewable energy incentives, when they knew it was not.

Craig Ducey also pleaded guilty to a related $58.9 million securities fraud, which the Department of Justice says victimized more than 625 investors and shareholders of Imperial Petroleum, a publicly-traded company and the parent company of E-biofuels.

The brothers face up to 20 years in prison.