Manager Pleads Guilty In Fuel Scam
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Posted: 3:22 PM Feb 4, 2009
Manager Pleads Guilty In Fuel Scam
A Nebraska man promoting the idea of selling ethanol blended gasoline at unleaded prices to store owners has plead guilty to nine charges.
Reporter: LeAnne Morman
Email Address: sixonline@wowt.com
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A Nebraska man promoting the idea of selling ethanol blended gasoline at unleaded prices to store owners has plead guilty to nine charges.

Attorney General Jon Bruning announced that Tim Kaup, the general manager of the Sapp Bros Distribution Center in West Point, pleaded guilty to nine charges in Burt County Court yesterday.

In August, a joint investigation by the Attorney General’s Office and the Nebraska Department of Agriculture’s Division of Weights and Measures showed Kaup was actively promoting the idea of ethanol at unleaded price.

“Mr. Kaup encouraged gas station owners to take advantage of unsuspecting customers,” said Bruning. “Not only is his behavior unethical, it’s illegal and won’t be tolerated."

Kaup plead guilty to charges that include aiding and abetting, theft by deception, criminal simulation and deceptive advertising. All are misdemeanors.

Kaup will be sentenced in March in Burt County Court.

The investigation also found that Tom Wiese was selling ethanol blend gasoline to customers at the higher unleaded price. He was selling customers what they thought was unleaded gas, but what was really bought was the lower priced ethanol blend.

Wiese, who owns gas stations in Scribner and Decatur plead 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 $4,000 plus court costs.

In 2008, the Attorney General’s Office received more than 90 gas complaints; including pricing, advertising and pump calibration, from consumers across Nebraska that involved 35 different gas stations.

More than a dozen stations are currently under investigation.


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