The former owners and the company that developed a biomass power plant in Colorado have agreed to pay $2.6 million to the federal government to resolve fraud allegations.
The Vail Daily reports U.S. Attorney Jason Dunn announced the settlement Tuesday following allegations that Eagle Valley Clean Energy LLC violated the federal False Claims Act.
Former Gypsum plant owners Dean Rostrom and Kendric Wait had ownership interests in Eagle Valley Clean Energy LLC, Evergreen Clean Energy Corp. and Evergreen Clean Energy LLC.
Federal prosecutors say Eagle Valley Clean Energy LLC was reimbursed 30% of a payment it never made to Evergreen Clean Energy LLC.
The company agreed to pay $2.3 million while Rostrom and Wait each agreed to pay $125,000.
The company said it and its principals deny the allegations.
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