Jeffrey Gunselman Pleads Guilty to 79-Count Indictment in Bio-Diesel Company Fraud

The former owner of a bio-diesel fuel company has pleaded guilty to a 79-count indictment charging wire fraud and money laundering.

Jeffrey David Gunselman of Lubbock pleaded guilty Friday to the indictment which charges 51 counts of wire fraud, 24 counts of money laundering, and four counts of making false statements in violation of the Clean Air Act.

The 30-year-old Gunselman reportedly schemed to defraud funds from the Environmental Protection Agency, brokers, energy companies, and others from September 2010 through October 2011.

The offenses are related to the operation of his now-defunct company, Absolute Fuels, LLC.

Gunselman falsely represented that he and each corporate defendant were in the business of producing bio-diesel fuel, despite not having a bio-diesel fuel production facility. The business falsely generated renewable fuel credits from the EPA, which he then sold to oil companies and brokers.

Gunselman made 51 fraudulent transactions and received more than $41,762,000.

During that time, Gunselman purchased around $12 million in real and personal property, including vehicles such as a Bentley, Mercedes Benz, Lexus, Cadillac, and a Shelby Cobra. He also purchased a Patton Military Tank, a Gulfstream Airplane, and professional basketball season tickets and corporate sponsorship.

All property obtained as a result of the fraudulent actions will be forfeited.

Each of the wire fraud counts carries a maximum penalty of 20 years in prison, each of the money laundering counts carries a maximum penalty of 10 years in prison, and each of the false statement counts carries a maximum penalty of two years in prison.

Each count also carries a maximum fine of $250,000.

The case is being prosecuted by Assistant U.S. Attorneys Paulina Jacobo and Justin Cunningham of the U.S. Attorney’s Office in Lubbock. Assistant U.S. Attorney John J. de la Garza is handling the forfeiture.