The holding company Icahn Enterprises was subpoenaed for information about its founder’s attempts to change U.S. biofuel policy while he was an informal White House advisor, reported Bloomberg. Investor Carl Icahn sought to persuade the EPA to shift the “point of obligation” for compliance with the ethanol mandate, which would have benefited a refinery owned by Icahn.
Icahn Enterprises disclosed that the U.S. attorney in New York City had issued a subpoena “seeking production of information” in documents filed with the Securities and Exchange Commission. The company said it was “providing information in response to the subpoena” and that “the U.S. attorney’s office has not made any claim or allegations against us or Mr. Icahn.” The U.S. attorney also subpoenaed CVR Energy, the oil refinery owned by Icahn, asking about its activities “as well as those of CVR Refining and Icahn, according to a separate filing by that company,” said the wire service.
At present, refiners are responsible for meeting EPA targets for blending ethanol into the gasoline supply. If refiners cannot use enough biofuels on their own, they can make up the difference by buying credits known as RINs. Some refiners have paid huge amounts to acquire the credits. Icahn supported a plan to move the point of obligation to retailers. For the opening months of the Trump administration, he was a special regulatory advisor to the president. He has denied profiting from the role.