ANTON, TX – A Texas businessman is spending nearly 16 years behind bars after defrauding the Environmental Protection Agency (EPA) out of over $41 million in a complex biofuel scheme. Jeffrey David Gunselman, owner of Absolute Fuels, LLC, was sentenced in March 2013 following a guilty plea to charges of wire fraud, money laundering, and violations of the Clean Air Act.
According to court documents, Gunselman operated Absolute Fuels in Anton, Texas, along with a network of affiliated companies – Absolute Milling, LLC; Ellipse Energy, LLC; 21 Investments, LLC; and YGOG Holdings, LLC. However, investigators determined these entities were essentially facades, with Gunselman maintaining sole ownership, management, and control. The EPA alleges Gunselman treated them as alter egos to conceal the fraudulent activity.
Between September 2010 and October 2011, Gunselman engaged in 51 fraudulent transactions. He falsely reported to the EPA that Absolute Fuels had produced biodiesel fuel at its facility. These false claims were submitted via wire communications and resulted in the EPA issuing electronic fund transfers totaling approximately $41,762,236 to Gunselman. No biodiesel was actually produced during the period of the fraudulent claims.
Legal Ramifications
Gunselman was initially charged with four counts of violating the Clean Air Act (42 U.S.C. 7413(c)(2)(A)), which prohibits knowingly making false material statements to the EPA. He also faced 51 counts of wire fraud (18 U.S.C. 1343) and 24 counts of money laundering (18 U.S.C. 1957). After pleading guilty, Gunselman received a sentence of 188 months (15 years and 8 months) incarceration. In addition to the prison term, he was fined $175,000 and ordered to pay over $54.9 million in restitution to the government.
Investigation & Aftermath
The case was a joint effort by the EPA’s Criminal Investigation Division and the Federal Bureau of Investigation. The investigation highlighted the vulnerability of renewable fuel credit programs to fraud and the EPA’s commitment to pursuing perpetrators who attempt to exploit these systems. The substantial restitution order reflects the significant financial damage caused by Gunselman’s actions.
Key Facts
- Defendant: Jeffrey David Gunselman
- Business: Absolute Fuels, LLC (and affiliated entities)
- Location: Anton, Texas
- Scheme: Falsely claimed biodiesel production to receive EPA payments
- Fraud Amount: Approximately $41.76 million
- Restitution Ordered: Over $54.9 million
- Prison Sentence: 188 months
- Laws Violated: 18 U.S.C. 1957, 42 U.S.C. 7413(c)(2)(A), 18 U.S.C. 1343
The EPA press release regarding this case can be found here.
Source: EPA ECHO Enforcement Case Database
Related Federal Cases
- Jeffrey Wilson, Biofuel Fraud, Indiana 2024 · Illinois
- Willie Mitchell, Bank Fraud, Phoenix AZ, 2023 · Arizona
- Thao Thi Kim Nguyen, Mortgage Fraud, Orange County CA, 2018 · Connecticut
- Sarah Johnson, CARES Act Loan Fraud, Denver CO, 2023 · Washington
- Hot Springs Man Sentenced for PPP UI Fraud, Hot Springs AR, 2023 · Indiana
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime