Fuels

Guilty Pleas in Nebraska Fuel Scam

Sapp Bros. employee, station owner sold ethanol blend as unleaded gas
LINCOLN, Neb. -- Nebraska Attorney General Jon Bruning said last week that Tim Kaup, the general manager of the Sapp Bros distribution center in West Point, pleaded guilty to nine charges in Burt County Court. In August, a joint investigation by the Attorney General's Office and the Nebraska Department of Agriculture's Division of Weights & Measures showed Kaup actively promoted the idea of selling ethanol-blended gasoline at unleaded prices to store owners.

"Kaup encouraged gas station owners to take advantage of unsuspecting customers," said Bruning. "Not only is his [image-nocss] behavior unethical, it's illegal and won't be tolerated."

Kaup was charged with aiding and abetting station owner Tom Wiese in committing seven counts of theft by deception, one count of criminal simulation and one count of deceptive advertising. Kaup will be sentenced March 17.

The investigation also found that Wiese was selling ethanol-blend gasoline to customers at the higher unleaded price. People pumped and purchased what they thought was unleaded gasoline, but what they really got was the lower-priced ethanol blend.

Wiese, who owns stations in Scribner (Scribner Express) and Decatur (Decatur Express), Neb., pleaded guilty to three counts of theft by deception, one count of criminal simulation and one count of deceptive advertising in November and was sentenced to pay maximum fines totaling $4,000 plus court costs. Wiese cooperated with investigators. The plea agreement was contingent upon his continued cooperation and testifying in court if needed.

Theft by deception is a class II misdemeanor with a penalty of up to six months in jail and a $1,000 fine. Criminal simulation and deceptive advertising are class III misdemeanors punishable by up to three months in jail and $500 fine.

In 2008, the Attorney General's Office received more than 90 gas complaints from consumers across Nebraska involving 35 stations. Issues raised include pricing, advertising and pump calibration. More than a dozen stations are currently under investigation.

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