Fuel Delivery Company Allegedly Sold Petroleum Diesel Fuel But Charged For Biodiesel – Energy and Natural Resources – United States – Mondaq News Alerts

United States: Fuel Delivery Company Allegedly Sold Petroleum Diesel Fuel But Charged For Biodiesel

To print this article, all you need is to be registered or login on Mondaq.com.

  • 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
    the contract.
  • 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.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Energy and Natural Resources from United States

Leave a Reply

Your email address will not be published. Required fields are marked *