On June 10, 2015, in Spokane, Washington, Michael Peter Spitzauer
, of Kennewick, Washington, was sentenced to 48 months in prison, one year of supervised release and ordered to pay $10,365,000 in restitution to the victims of his
fraud scheme and $2,585,177 in restitution to the IRS
previously pleaded guilty to filing a false tax return and failing to file a tax return.
Spitzauer served as the CEO and President of Green Power, Inc., a biodiesel fuel business, which Spitzauer asserted possessed the technology to turn waste into biofuel.
defrauded various investors by representing that he
would maintain their investment deposits in accounts controlled by an attorney, and not be utilized without the parties' written agreement.
In fact, Spitzauer
controlled the bank accounts, and spent the investors' deposits in unauthorized ways, such as on luxury goods, and repaying prior investors who sought return of their funds.
also defrauded additional investors by falsely representing that their funds would be used to pay state agency fees or insurance bonds.
From 2007 to 2013, Spitzauer
stole more than $10.3 million from the various victims, who reside across the globe, including in China, Spain, the Netherlands, Ireland, Australia, Slovenia, Canada, Texas, and Maryland.
In addition, Spitzauer
filed false tax returns for tax years 2007 and 2009, when he
reported that he
received no income and failed to disclose the funds he
fraudulently obtained from his
investors, which totaled approximately $4.5 million in taxable income for 2007 and 2009.
For tax year 2008, Spitzauer
failed to file a tax return, despite receiving approximately $3.2 million in taxable income, which represented funds he
stole from the defrauded investors.
As a result, Spitzauer
evaded the assessment of approximately $2.5 million in taxes.