BANGOR, Mich. (WOOD) — The former head of a Bangor-based company is heading to prison and must repay more than $1.9 million in taxes, according to the U.S. Attorney’s Office.
A judge sentenced 66-year-old John Gerald Oakley to a year and a day in prison for two counts of federal tax evasion, according to a Monday announcement by the U.S. Attorney’s Office.
Authorities say the Dimondale man was the CEO of Michigan BioDiesel, which claimed it was producing “an alternative fuel mixture,” to earn a tax exemption.
The U.S. Attorney’s Office says the judge ordered Oakley to pay back $1,867,122.50 of tax refunds improperly sent to Michigan BioDiesel, as well as $56,000 in personal federal taxes he owes.
The office says 50-year-old Mississippi resident Tracy Darin Daniels was also sentenced to two years of probation after pleading guilty to misprision in connection to the case. Authorities say Daniels provided false documents Oakley used in federal bankruptcy court.