Former Absolute Fuels CEO arrested, criminal proceedings begin

By Ron Kotrba | July 23, 2012

Criminal proceedings are underway against Jeffrey David Gunselman, former CEO of Texas-based Absolute Fuels, in U.S. District Court as Judge Sam Cummings filed an official complaint last week authorizing Gunselman’s arrest. Daryl Fields, public affairs officer for the U.S. Attorney's office in the Western District of Texas, told Biodiesel Magazine that Gunselman was arrested in the Western District of Texas pursuant to the criminal complaint filed in the Northern District. Kathy Colvin with the Northern District of Texas said Gunselman was arrested Thursday, July 19, in San Antonio. She also said Gunselman had his initial appearance, and the government moved to detain. Gunselman is in federal custody being held without bond pending a detention hearing scheduled for July 24 at 11:30 a.m. before U.S. Magistrate Judge Pamela Mathy in San Antonio.

Absolute Fuels LLC out of Lubbock, Texas, is alleged to have sold 48 million fraudulent renewable identification number (RIN) credits in 2010 and 2011. The U.S. EPA, the agency that runs the renewable fuel standard program, issued Absolute Fuels a notice of violation (NOV) earlier this year for suspicion of generating fraudulent RINs.

The arrest of Gunselman follows U.S. House subcommittee hearings on biodiesel RIN fraud nearly two weeks ago, during which panelists from the biodiesel industry urged EPA to swiftly move forward with pending RIN fraud cases so the market can regain some semblance of stability.  

Last month, Rodney Hailey, owner of Maryland-based Clean Green Fuel, was convicted on multiple counts of wire fraud, money laundering and violating the Clean Air Act, for similar activity.



5 Responses

  1. TD



    I'm surprised that you guys haven't heard about a raid that took place last Wednesday in Bethlehem, PA. More than 50 Federal Agents from the FBI, EPA, USDA , Treasury, and Other agencies raided Greenworks Holdings a grease collector (Environmental Energy and Recycling Corp and Smarter Fuel Inc). They removed all files and computer equipment and all employees were questioned.

  2. Andrew Davison



    What do you know about this raid, we have been trying to find out information about this company for quite sometime now.

  3. BC



    We would also like to know more

  4. John Smith



    TD: I have heard nothing about this raid. It's been over a week since this allegedly happened. No local news stories, official statements, nothing. Curious where you heard this from. -Interested

  5. TD



    I heard it from employees who were present at the time of the raid. I'm not sure why reporters haven't picked up on this story. I guess sometimes reporters pick up on stories or ignore stories for there own reasons. I'm really surprised there's been no coverage as this was a significant situation with multiple agencies.


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