United States: Fuel Delivery Company Allegedly Sold Petroleum Diesel Fuel But Charged For Biodiesel
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- Massachusetts AG Maura Healey reached a
settlement with fuel delivery company Diesel Direct, LLC and
related individuals (collectively “Diesel Direct”) to
resolve allegations that it delivered nonconforming diesel fuel
products to state agencies, overcharged state agencies for fuel
delivery, and did not fulfill contract diversity requirements in
violation of the Massachusetts False Claims Act.
- According to the AG’s office, the complaint brought by a
whistleblower alleged that Diesel Direct delivered petroleum diesel
fuel to state agencies, while charging these agencies the higher
rates applicable to biodiesel. The complaint further alleged that
Diesel Direct overcharged state agencies by improperly charging a
federal fuel excise tax and by using an incorrect higher benchmark
price to determine its per-gallon price. In addition, the complaint
alleged that Diesel Direct failed to spend two percent of its
contract-generated sales with diverse businesses, as required by
- Under the terms of the settlement, Diesel Direct will pay
$850,000 to the state. Diesel Direct will also be precluded from
bidding or otherwise participating in any contract with the state
or any state agency for five years.
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