- U.S. Department of Justice
Federal grand jury indicts Sherbacow for embezzlement of nearly $6 million from Alder Fuels
A federal grand jury in Washington, D.C., returned an indictment May 4 charging the founder and former CEO of sustainable aviation fuel (SAF) company Alder Fuels with embezzling at least $5.9 million from the company.
According to court documents, Bryan Sherbacow, 54, of Charleston, South Carolina, and Washington, D.C., allegedly engaged in a scheme to defraud the company he founded by fraudulently transferring company funds to a personal bank account and making unauthorized personal expenditures from a company bank account.
Sherbacow allegedly attempted to conceal his embezzlement by, among other things, emailing altered bank statements and other falsified financial records to a company accountant and members of the company’s board.
Sherbacow allegedly used embezzled funds to pay for such personal items as a vintage Mercedes-Benz sports car, a Range Rover sport-utility vehicle, a down payment on a condominium, payments to an art-auction operator, personal tax liens, personal credit-card payments, rent payments on personal residences, payment to a beach club, and the installation of an audio-visual system at a personal residence.
Sherbacow is charged with three counts of wire fraud and two counts of engaging in monetary transactions in property derived from specified unlawful activity.
If convicted, Sherbacow faces a maximum penalty of 20 years in prison on the top counts of the indictment.
Those who are thought to be victims in this case are urged to contact email@example.com.
Editor’s Note: Sherbacow was terminated from his position as CEO of Alder Fuels by the board of directors, the company announced Feb. 6.
In January, Alder Fuels announced that Tim Obitts was appointed by the board as acting CEO and Sherbacow’s final day leading the company was Dec. 27, but it provided no reason for Sherbacow’s unceremonious departure from his leadership position at the company.
On Feb. 6, however, Alder Fuels revealed that, “As a result of enhanced management processes, the company uncovered that the now-former CEO, Bryan Sherbacow, engaged in questionable financial transactions that benefited him personally. Upon discovery, the board immediately commenced a comprehensive review of the transactions and terminated Mr. Sherbacow for cause.”