KENNEWICK — The owner of a Pasco controversial biofuels company will remain in federal custody over his alleged role in defrauding investors.
Green Power CEO Michael Spitzauer was denied bail by U.S. Magistrate Judge James P. Hutton on Friday.
At this time, Spitzauer will remain in federal custody in Yakima pending further court hearings.
Spitzauer has pleaded innocent in U.S. District Court to wire fraud, aggravated identity theft and money laundering.
He is accused of defrauding investors of at least $6.7 million in the past seven years, although his debts reportedly total at least $21.4 million, according to court documents.
The Kennewick man claims to have developed technology to turn municipal waste into biofuels, although he never finished building a plant in the Port of Pasco’s Big Pasco Industrial Park.
The state Department of Ecology closed the unfinished plant in 2009 because he lacked the necessary air quality permits.
His lease at the port will expire on Dec. 31, and will not be continued, according to officials.