United States:
Fuel supplier allegedly sold diesel fuel but billed biodiesel
July 27, 2021
Cozen O’Connor
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- Massachusetts AG Maura Healey reached an agreement with fuel delivery company Diesel Direct, LLC and related parties (collectively “Diesel Direct”) to investigate allegations that it supplied non-compliant diesel fuel products to government agencies, overcharged government agencies for fuel delivery, and failed to comply has contract diversity requirements that violate the Massachusetts False Claims Act.
- According to the AG office, a whistleblower’s complaint alleged that Diesel Direct had supplied petroleum diesel fuel to government agencies while charging these agencies the higher rates applicable to biodiesel. The complaint also alleged that Diesel Direct overcharged government agencies by improperly imposing a state fuel excise tax and using a false higher reference price to determine the price per gallon. In addition, the complaint alleged that Diesel Direct failed to contractually spend two percent of its contractual sales with various companies.
- Under the terms of the settlement, Diesel Direct will pay the state $ 850,000. Diesel Direct is also excluded from submitting offers or otherwise entering into contracts with the state or any government agency for five years.
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