BROKEN AND DECEIVED: Robert F. Rothluebbers, a 68-year-old man from St. Louis, has been sentenced to 14 months in prison for a long-running Ponzi scheme that left many innocent victims financially broken.
Rothluebbers, who ran the scheme from October 2014 to May 2017, promised his investors outrageous returns on their money by claiming he would purchase R-22 refrigerant in bulk and resell it to contractors and others at a 50% profit. He falsely claimed that the gradual phaseout of R-22 would increase investors’ profits.
But instead of investing the money as promised, Rothluebbers used it for his own personal purchases and to pay relatives. He also kept the scheme going by paying old investors with money from new investors and repeatedly making false promises that he would return the victims’ money. He even went so far as to provide bogus excuses for failing to pay his investors, including a claim that the money had been frozen by his financial institution and the Internal Revenue Service.
Many of Rothluebbers’ victims were semi-retired and living on fixed incomes. His scheme forced them to pay considerable sums of money on civil lawsuits and attorneys’ fees in an attempt to reclaim their money.
In all, Rothluebbers raised at least $350,000 from four investors and he never repaid the majority of these funds. The victims were left with significant losses, with some losing their life savings.
Rothluebbers pleaded guilty in September in U.S. District Court in St. Louis to one count of wire fraud. The FBI investigated the case and Assistant U.S. Attorney Jonathan Clow prosecuted the case.
The sentencing of Robert F. Rothluebbers is a small measure of justice for the many victims who were left broken and deceived by his Ponzi scheme. It is a reminder that the consequences of such crimes can be severe and that those who commit them will be held accountable.
Related Federal Cases
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Key Facts
- State: Missouri
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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