Founder and Former CEO of Sustainable Fuel Company Charged in Multimillion-Dollar Embezzlement Scheme

(U.S. Department of Justice) A federal grand jury in Washington, D.C., returned an indictment yesterday charging the founder and former CEO of a sustainable fuel company with embezzling at least $5.9 million from the company.

According to court documents, Bryan Sherbacow, 54, of Charleston, South Carolina, and Washington, D.C., allegedly engaged in a scheme to defraud the company he founded by fraudulently transferring company funds to a personal bank account and making unauthorized personal expenditures from a company bank account. Sherbacow allegedly attempted to conceal his embezzlement by, among other things, emailing altered bank statements and other falsified financial records to a company accountant and members of the company’s board. Sherbacow allegedly used embezzled funds to pay for such personal items as a vintage Mercedes-Benz sports car, a Range Rover sport utility vehicle, a down payment on a condo, payments to an art auction operator, personal tax liens, personal credit card payments, rent payments on personal residences, payment to a beach club, and the installation of an audio-visual system at a personal residence.

Sherbacow is charged with three counts of wire fraud and two counts of engaging in monetary transactions in property derived from specified unlawful activity. If convicted, Sherbacow faces a maximum penalty of 20 years in prison on the top counts of the indictment.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Wayne Jacobs of the FBI Washington Field Office’s Criminal and Cyber Division made the announcement.

The FBI Washington Field Office and the Defense Criminal Investigative Service, Charleston Resident Agency are investigating the case.

Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. READ MORE

Excerpt from Biofuels Digest: In Washington, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Assistant Director in Charge David Sundberg of the FBI Washington Field Office announced that Bryan Sherbacow, founder and former CEO of a sustainable fuel company Alder Renewables (originally, Alder Fuels) pleaded guilty today one count of wire fraud in connection with a scheme to embezzle at least $5.9 million from the company and to defraud several investors out of $15 million. Sherbacow is scheduled to be sentenced on May 16 and faces a maximum penalty of 20 years in prison.

According to court documents, between 2021 and 2022, 55, of Charleston, South Carolina, and Washington, D.C., defrauded the company he co-founded by transferring company funds without authorization to his personal bank account and by making unauthorized personal expenditures from a company bank account. Sherbacow attempted to conceal his actions by, among other things, emailing altered bank statements and other falsified financial records to the company’s outside accounting firm and members of the company’s board. To raise additional funds for the company, Sherbacow also sent or caused to be sent altered bank statements and other falsified financial records to prospective and current investors. As an example, the federal officials detailed that Mr. Sherbacow caused a false and fabricated bank statement to be sent to two investors, in which Sherbacow intentionally removed transactions showing transfers from the company bank account to his personal bank account and falsified account balance information to make it appear that the company possessed more cash on hand than it possessed, due in part to the unauthorized transfer of funds. He also caused a balance sheet containing false and misleading financial information to be sent to another investor.

In at least partial reliance on the fabricated bank statement and false and misleading financial information, three investors collectively invested approximately $15 million. according to the Justice Department. READ MORE

n Washington DC, Alder Fuels founder and former CEO Bryan Sherbacow was sentenced Tuesday to three years in prison in connection with a scheme to embezzle at least $5.9 million and to defraud several investors out of approximately $15 million.

According to court documents, between 2021 and 2022, Bryan Sherbacow, 55, of Charleston, South Carolina, and Washington, D.C., defrauded the company he co-founded by transferring company funds without authorization to his personal bank account and by making unauthorized personal expenditures from a company bank account. Sherbacow attempted to conceal his actions by, among other things, emailing altered bank statements and other falsified financial records to the company’s outside accounting firm and members of the company’s board.

To raise additional funds for the company, Sherbacow also sent or caused to be sent altered bank statements and other falsified financial records to prospective and current investors. For example, Sherbacow caused a false and fabricated bank statement to be sent to two investors, in which Sherbacow intentionally removed transactions showing transfers from the company bank account to his personal bank account and falsified account balance information to make it appear that the company possessed more cash on hand than it possessed, due in part to Sherbacow’s unauthorized transfer of funds. Sherbacow also caused a balance sheet containing false and misleading financial information to be sent to another investor. In at least partial reliance on the fabricated bank statement and false and misleading financial information, three investors collectively invested approximately $15 million. Sherbacow also misled an individual who loaned funds to the company regarding the company’s financial state.

The company he founded, now Alder Renewables, continues to develop its advanced sustaiunable fuels technology with an emphasis on SAF. READ MORE