Annapolis, MD (January 23, 2008) - Reaffirming his commitment to enforce all of Maryland's tax laws to ensure everyone pays their fair share, Comptroller Peter Franchot announced today that agents from his Field Enforcement Division recently investigated and cited seven individuals for fuel tax violations.

"Protecting Maryland consumers from inferior and potentially harmful products and ensuring that everyone pays their fair share are top priorities," said Comptroller Franchot. "My Field Enforcement Division will continue to diligently enforce motor fuel tax laws, as well as all other state and federal laws to make sure all businesses are competing on a level playing field and no one is cheating the people of Maryland."

Earlier this month, Timothy F. Judy of Greenwood, Delaware was found distributing home heating fuel in Caroline County while not registered with the Motor Fuel, Alcohol & Tobacco Tax Regulatory (MATT) Division of the Maryland Comptroller's Office. Selling special fuel while not registered with the state is a violation of the Tax General Article of the Annotated Code of Maryland. It is a misdemeanor offense carrying a possible fine of $1,000 and/or imprisonment not exceeding 6 months.

In addition, the vehicle being operated by Judy was not properly identified (marked with owner or company name) as required by law, which is also is a misdemeanor resulting in a possible fine of $1,000. Citations were issued for both violations requiring subsequent appearance in District Court where the case will be heard.

In a separate investigation, agents and inspectors from the Field Enforcement Division observed numerous independent dump truck operators in the area of the State Highway salt storage facility in Jessup, Maryland. After inspecting a total of ten vehicles for compliance with Motor Fuel Tax laws and regulations, three were found to be operating with dyed (untaxed) fuel in their propulsion tanks. All three vehicles were independently owned, but all were working for the King Pallet Company of 7941 Pulaski Highway, Baltimore, MD 21222. Citations were issued to vehicle operators Bonnie Lynn Bennett, Noe Ambrocio and Helen Balk, all of the Baltimore area and reported to be working for King Pallet.

Members of the Maryland State Police Commercial Vehicle Enforcement Division also participated in the vehicle inspections at this location and discovered other violations for which traffic citations were issued.

A further investigation, conducted in conjunction with the Baltimore County Police Traffic Safety Division, found several other vehicles associated with King Pallet operating with dyed (untaxed) fuel in their propulsion tanks. Agents of the Comptroller's office responded and wrote additional citations to Joseph Paul DeMarco in the Carney area, and Robert Raspi and James Thomas Padgett, Jr. in the Towson area of Baltimore County. All three individuals were reported to be working for King Pallet. An investigation of this company is continuing, and may include a potential audit of all fuel purchases and use.

The use of dyed (untaxed) fuel requires constant monitoring, as it is an economic and environmental challenge. Not only does it involve failure to pay motor fuel taxes, but the use of this fuel also violates clean air standards.

###

Contact: Caron Brace, (410) 260-7438 (office), (410) 212-9414 (cell)