A local heating oil company has agreed to pay $450,000 to settle allegations that it was selling below-quality fuel that caused problems in heating systems.
On Wednesday, March 3, Worcester-based Peterson Oil resolved claims it violated the False Claims Act as part of a state contract, according to This Week In Worcester. The claims were pressed by State Attorney General Maura Healey’s office.
The resolution requires Peterson to pay $450,000 and improve its record-keeping.
Peterson had two contracts with Massachusetts to deliver fuel that contained 5 percent biodiesel by volume.
The claim alleged Peterson was delivering fuel that contained 40 percent or more biodiesel by volume. Several state entities complained that the fuel had damaged their heating systems.
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