Absolute Fuels CEO pleads guilty to fraud

Jeffrey Gunselman, the man behind US-based biofuels company Absolute Fuels, has pleaded guilty to several accounts of money laundering and federal fraud in relation to a $42 million (€31.6 million) biodiesel fraud investigation.

He pleaded guilty in federal court in Lubbock, Texas in December to 51 wire fraud counts and 24 of money laundering. He also further admitted to being guilty on four counts of making false statements in violation of the US Clean Air Act.

The charges were brought to Gunselman after it was discovered he was selling renewable fuel credits without having the actual biodiesel to back them up. Absolute Fuels was closed in mid-October and all employees lost their jobs.

It has been reported that he used his ill gotten gains to fund a lavish lifestyle of mansions, cars and expensive war memorabilia.

Each wire fraud count is punishable by up to 20 years in prison by US law, while each money-laundering count carries a 10-year maximum prison sentence.