Summary

Gregory Federico, owner of Capital Fuels, Mountainside, NJ, was sentenced by a U.S. District Court judge in Newark, NJ, to six years in jail for his role in a scheme to evade motor fuel excise taxes. Capital Fuels provided false invoices to strings of nonexistent (daisy chain) operators to hide the tax liability of transactions involving bootleg fuel. Federico also received payments from bootleg operators in return for use of his company in the schemes. Federico pleaded guilty to criminal conspiracy to commit tax evasion in 1994.