Former investors sue over fraudulent biodiesel company
by Associated Press
Published: February 27,2013
PONTOTOC — Two former investors in a biodiesel operation in north Mississippi have sued a Tennessee partner alleging they were duped into getting involved in a scam that defrauded a federal subsidy program.
The Northeast Mississippi Daily Journal reports W. Tommy Tacker II and Janey Tyner, both of Martin, Tenn., are seeking compensatory and punitive damages. The lawsuit was filed this past week in Pontotoc County against H. Max Speight of Martin, Tenn.
Tacker founded Biodiesel of Miss. Inc. with then-Tennessee lawyer H. Max Speight and Janey Tyner. Records show he held 52 percent, with Speight and Tyner with 24 percent each. The company built a soybean biodiesel refinery in the Nettleton area but went bankrupt in 2006.
Tacker and Speight were indicted in 2009 on federal charges of conspiracy and fraud totaling some $2.89 million in biodiesel subsidies from the U.S. Department of Agriculture. Tyner was not indicted.
Speight ultimately pleaded guilty to using more than $1 million in clients’ money to fund the Biodiesel operation. He was disbarred and sentenced to prison for 26 months. He testified against Tacker.
A jury convicted Tacker in 2010 on 10 counts that he conspired and defrauded the U.S. Department of Agriculture out of $2.8 million in a biofuels subsidy program. He was sentenced to five years.
In the lawsuit was filed in Pontotoc County because, it states, Tacker lived there and suffered harm from Speight there.
The lawsuit alleges, claims Speight intentionally defrauded Tacker and Tyner, whom it claims were “ignorant” of Speight’s lies and misrepresentations.
— Northeast Mississippi Daily Journal
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Alumni-couple donate $12.3M to Mississippi State
- IKE TROTTER: There are primary changes in Social Security for 2014
- MAN OF STEEL: Madhu Ranade leading Severstal Columbus
- Town given Obamacare insurance break, but faces additional costs in 2015
- Expert on airlines predicts Jackson-Evers will keep remaining carriers
- TRIP releases report on state's crumbling roads, bridges
- Butler Snow Advisory Services adds Jimmy Bailey
- C Spire launches next phase of 1-gig service rollout
- MDA to lead delegation on mission to Europe
- Public meeting called to mull future of convention center