Chicago (IL) - The cleantech industry has its first prominent scandal, as a former state official of North Carolina was sentenced to 40 months in prison for accepting a $200,000 bribe for the expedition of permits for a proposed ethanol plant. Boyce Hudson admitted that he accepted a fake bribe from executives of Agri-Ethanol Products to aid them in the expedition of the air quality permit process for their proposed $220 million plant.

Hudson was caught during an FBI sting operation in which an agent posed as an Agri-Ethanol investor. Hudson then met with Agri-Ethanol executives, which included CEO David Brady, and reached what he believed was a deal. The FBI was tipped off to Hudson’s actions when executives at Agri-Ethanol were telling investors that a state official was aiding them in the expedition of the permit process. One of the investors felt uncomfortable and notified the authorities.

Jim Perry, former Wake Forest mayor, and Dave Brady, a Raleigh businessman, founded Agri-Ethanol in 2004. The company issued a press release in the middle of 2006 stating they had raised enough money to open as many as 20 ethanol plants on the East Coast. Authorities reported that the money never materialized and there was no land purchased for the proposed plants. Prosecutors claim that the company was attempting to rush the permit so that they would be able to utilize the plant as leverage for further investment. The company’s website and phones have both been shut down and disconnected.

Hudson was reported to have been cooperative with authorities and wore a wire, and also allowed his calls to be monitored in what authorities say was an ongoing investigation of Agri-Ethanol. No other indictments have yet been made, causing the judge to not reduce Hudson’s jail time for his dirty cleantech mishap.