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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.

 

 
 
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