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2 Men Get Prison For ‘Oil-From-Soil’ Tax Scam

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LOS ANGELES (AP) — Two Southern California men who claimed to be developing a revolutionary way to remove waste oil from dirt are going to federal prison for tax fraud.

Federal prosecutors say they diverted at least $3 million in company money to themselves.

The U.S. attorney’s office says David Feuerborn of Camarillo was given a two-year prison term on Friday. Thomas Jennings of Anaheim Hills received the same sentence on Monday.

They were convicted earlier this year of conspiracy and tax fraud charges and ordered to pay more than $1 million in restitution.

Prosecutors say that for the past decade, the men ran a series of “oil-from-soil” companies, siphoning off money and avoiding taxes by falsely claiming the money as loans and business expenses.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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