EPA recently denied it knew the program was susceptible to fraud.
“Justice Department attorneys say that the Environmental Protection Agency’s requirement that gasoline and diesel refiners either use a certain amount of green fuel that is not commercially available or purchase an exemption provided the financing for a scam artist to buy $15 million worth of art.”
Programs and policies built upon idealism will always collide adversely with the Law of Unintended Consequences. This is directly due to the fact that those who hold the ideals around which these policies and programs are created are necessarily naive, and completely unable to perform second-order thinking: considering how OTHER people, who may not necessarily wish to comply with the policies and programs, will react/respond/exploit the situations created by those policies and programs.
It should be axiomatic that wherever government is involved in the manipulation of large amounts of cash, some people will seek (and most likely find) ways to cash in for personal profit.
It should also be axiomatic that direct government involvement in any sector of the economy diminishes the strength, freedom, assets, flexibility, adaptability of that economic sector. This is because government cannot create, allocate, redistribute, or even tax resources ‘fairly’ due to it’s incomplete knowledge and understanding of the capital-based economy.