Absolute Fuels Owner Jeffrey Gunselman Charged in 79-Count Indictment

[Updated December 2025 to include updated information:]

On March 29, 2013, 30-year-old Jeffrey David Gunselman was sentenced to over 15 years in prison after pleading guilty to a total of 79 criminal charges including wire fraud, money laundering, and making false statements.

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

Gunselman's Charges in Lubbock

Prior to his guilty plea, Gunselman was indicted on 51 counts of wire fraud, 24 counts of money laundering, and four counts of making false statements regarding environmental regulations.

The presiding judge ordered Gunselman to forfeit $54,973,137.50 in restitution to the victims of his fraudulent business scheme. These included the following companies:

• Tesoro Refining & Marketing Co. - $13,204,318.10
• Citgo Petroleum Corporation - $8,205,500.00
• Marathon Petroleum Company, L.P. - $6,960,491.44
• Petro-Diamond, Inc. - $6,805,900.96

Prosecutors allege that Gunselman, through Absolute Fuels and other corporate entities, schemed to defraud funds from the Environmental Protection Agency (EPA), brokers, energy companies, and others from September 2010 through October 2011.

The case was prosecuted by Assistant U.S. Attorney Paulina Jacobo of the U.S. Attorney’s Office in Lubbock.

What Was Gunselman Accused of Doing?

The indictment alleges that Gunselman falsely represented that he and each corporate defendant was in the business of producing bio-diesel fuel, yet did not have a bio-diesel fuel production facility, so the business entailed falsely generating renewable fuel credits, and then selling them to oil companies and brokers.

During this period, according to court documents, Gunselman and others purchased vehicles, an airplane, and property valued at around $12 million using funds derived from the wire fraud.

Gunselman also made false statements under the clean water act, claiming that the bio-diesel fuel had been produced and generated renewable fuel credits, when he knew that no bio-diesel fuel had been produced.

Gunselman's 15-and-a-Half-Year Prison Sentence

Gunselman was sentenced to a total of 188 months, or 15 and a half years, in federal prison. Following his sentence, he will be under court supervision for three years, along with other special conditions.

These conditions include not being able to own or work for a renewable/non-renewable fuel company without express permission, allowing the probation office full access of his financial accounts, and not being able to open any new credit lines without permission.

[Originally published on August 9, 2012:]

The owner of a bio-diesel fuel company has been indicted in the Hub City.

30-year-old Jeffrey David Gunselman has been indicted with felony offenses that include wire fraud, money laundering, and making false statements.

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

Gunselman has been indicted on 51 counts of wire fraud, 24 counts of money laundering, and four counts of making false statements.

If he is convicted, Gunselman will also be required to forfeit approximately $42 million, real estate, automobiles, jewelry, an airplane, and other property related to his offenses.

Prosecutors allege that Gunselman, through Absolute Fuels and other corporate entities, schemed to defraud funds from the Environmental Protection Agency, brokers, energy companies, and others from September 2010 through October 2011.

The indictment alleges that Gunselman falsely represented that he and each corporate defendant was in the business of producing bio-diesel fuel, yet did not have a bio-diesel fuel production facility, so the business entailed falsely generating renewable fuel credits, and then selling them to oil companies and brokers.

During this period, according to court documents, Gunselman and others purchased vehicles, an airplane, and property valued at around $12 million using funds derived from the wire fraud.

During that time, according to prosecutors, Gunselman made false statements under the clean water act, claiming that the bio-diesel fuel had been produced and generated renewable fuel credits, when he knew that no bio-diesel fuel had been produced.

If Gunselman is convicted, he will face a maximum sentence of 20 years in prison and a $250,000 fine for each of the wire fraud counts, 10 years in prison and a $250,000 fine for each of the money laundering counts, and at least two years in prison and a $250,000 fine for each of the false statement counts.

The case is being prosecuted by Assistant U.S. Attorney Paulina Jacobo of the U.S. Attorney’s Office in Lubbock.