The much trumpeted reason by the Nigerian government to attempt forcing water up mount Everest (removal of subsidy without adequate planning) is the fraud in the subsidy management system. You would think this is unique, but take a look at what happened in the USA.

The fact is that whereever there is a potential to get something for nothing there are risk takers anywhere who would try to take advantage, whether we are talking NIGERIA or the USA. But there are differences between the two countries:

1. A detailed documentation & monitoring system that enables a greaters than 50% chance than fraud would be detected - mind you not 100%
2. Top-notch law enforcement - by this I don't mean an ANGEL system, but the fact that no matter how "high and mighty" an offender may be he gets punished once caught.
3. Nobody in their right mind thinks the solution to this problem is to yank the program.

In reality all the above boils down to one difference - governments incompetence.

Enjoy.

Clean Green Fuel owner faces federal RIN fraud chargeshttp://www.biodieselmagazine.com/articles/8094/clean-green-fuel-owner-faces-federal-rin-fraud-charges

By U.S. Department of Justice | October 06, 2011

A criminal information was filed Oct. 3 charging Rodney R. Hailey, age 33, of Perry Hall, Md., with wire fraud, money laundering and a violation of the Clean Air Act, in connection with a scheme in which he allegedly sold $9 million in renewable fuel credits purportedly produced by his company, Clean Green Fuel LLC, when in fact the company did not produce any renewable fuel.

The criminal charges were announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David G. McLeod of U.S. EPA’s Criminal Investigation Division-Philadelphia Area Office; Postal Inspector in Charge Daniel S. Cortez of the U.S. Postal Inspection Service-Washington Division; Acting Special Agent in Charge Jeannine A. Hammett of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Thomas Muskett of the EPA Office of Inspector General-Office of Investigations-Washington Field Office; U.S. Marshal for Maryland Johnny Hughes; and Chief James W. Johnson of the Baltimore County Police Department.

“The information alleges that as the owner of Clean Green Fuel LLC, Rodney Hailey, specialized in producing 38-digit ‘renewable identification numbers,’ each of which supposedly corresponded to the production of two-thirds of a gallon of biodiesel fuel; in fact, he allegedly sold more than 32 million RINs for over $9 million,” said U.S. Attorney Rod J. Rosenstein. “Oil companies bought RINs in order to comply with EPA regulations requiring them to support the production of renewable fuel. However, the information alleges that in reality Mr. Hailey did not produce any renewable fuel; he just made up RINs.”

According to the criminal information, Rodney Hailey was the owner of Clean Green Fuel LLC, with several locations in the Baltimore area. Hailey registered Clean Green Fuel with the EPA as a producer of biodiesel fuel, a motor vehicle fuel derived from renewable resources that can be used like any other motor vehicle fuel.

In order to encourage the production of renewable fuel and lessen the nation’s dependence on foreign oil, all oil companies that market petroleum in the U.S. are required to produce a given quantity of renewable fuel or to purchase credits, called renewable identification numbers (RINs) from producers of renewable fuels to satisfy their renewable fuel requirements.

The criminal information alleges that between March 2009 and December 2010, Hailey sold over 32 million RINs (representing 22 million gallons of biodiesel fuel) to brokers and oil companies for at least $9 million, when in fact Clean Green Fuel had produced no fuel at all. According to the criminal information, Hailey did not have a facility capable of producing biodiesel fuel and his business operation consisted solely of generating false RINs on his computer and marketing them to brokers and oil companies.

Hailey allegedly used the proceeds of the wire fraud scheme to purchase luxury vehicles, including BMWs, Mercedes Benz’, a Rolls Royce Phantom, a Lamborghini, Ferrari, Maserati and others, as well as real estate and jewelry. According to the information, during the investigation Hailey made numerous false statements to EPA investigators, including that he manufactured the fuel from waste vegetable oil collected from 2,700 restaurants.

Finally, the criminal information seeks the forfeiture of over $9 million, alleged to be the proceeds of the scheme.

Hailey faces a maximum sentence of 20 years in prison for wire fraud; 10 years in prison for money laundering and two years in prison for violating the Clean Air Act. An initial appearance and arraignment are scheduled for Oct. 13, 2011 at 1:00 p.m. before U.S. District Judge William D. Quarles, Jr.

A criminal information is not a finding of guilt. An individual charged by criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.

For their work in this investigation, United States Attorney Rod J. Rosenstein praised the members of the District of Maryland Asset Forfeiture/Money Laundering Task Force, including the U.S. Marshals Service, the Baltimore County Police Department and IRS-Criminal Investigation; and the EPA Criminal Investigation Division, U.S. Postal Inspection Service, and EPA Office of Inspector General-Office of Investigations. Mr. Rosenstein thanked Assistant United States Attorneys Stefan Cassella and Tonya Kelly Kowitz, who are prosecuting the case.

Sounds really close to what the "cabal" is doing in Nigeria.

Quote: The criminal information alleges that between March 2009 and December 2010, Hailey sold over 32 million RINs (representing 22 million gallons of biodiesel fuel) to brokers and oil companies for at least $9 million, when in fact Clean Green Fuel had produced no fuel at all. According to the criminal information, Hailey did not have a facility capable of producing biodiesel fuel and his business operation consisted solely of generating false RINs on his computer and marketing them to brokers and oil companies.