Iowa Ethanol Executives Charged With Federal Tax Violations

– by Associated Press, January 27, 2016, Bristol Herald Courier

ethanol-factory

Photo: Gas2.org

Managers of an eastern Iowa ethanol company face multiple charges of federal tax violations.

U.S. Attorney Kevin W. Techau announced Wednesday a Cedar Rapids grand jury on Jan. 21 indicted Randy Less and Darrell Smith on multiple counts of willfully failing to pay federal taxes. Prosecutors allege they withheld federal income, Social Security, and Medicare taxes from employees but didn’t pay those taxes to the Internal Revenue Services.

The indictment says Less was majority owner and general manager of Permeate Refining in Hopkinton when he didn’t pay more than $116,000 from 2009 to 2010.

Smith was a corporate officer and manager of Algae Energae, which bought Permeate in 2009.

They’re charged with not paying over $307,000 in 2011 and 2012.

Attorneys for the men weren’t immediately available for comment.

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