The former CEO of Alder Fuels has been jailed for embezzling $5.9 million and defrauding investors of around $15 million.
Bryan Sherbacow, 55, the founder of the sustainable fuel provider, made unauthorized fund transfers from the company’s accounts to his personal bank account.
According to the Justice Department, these transactions happened between January 2021 and December 2022.
Prosecutors said Sherbacow used the embezzled funds to purchase luxury items.
These included:
- A vintage Mercedes-Benz sports car
- A Range Rover SUV
- A down payment on a condominium in Charleston, S.C
To conceal his actions, Sherbacow emailed altered bank statements and falsified financial documents to Alder Fuels’ external accounting firm and board members.
This deceit led to his termination in late 2022, as confirmed by a spokesperson for Boulder, Colo.-based Alder Renewables, the company’s new name following its rebranding in 2023.
Sherbacow’s lawyers did not respond to requests for comment.
In his efforts to raise investment capital, Sherbacow also sent manipulated bank statements and other falsified financial documents to current and prospective investors.
In one instance, he removed transactions indicating personal fund transfers and fabricated the company’s cash reserves to appear higher than they were.
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This deception resulted in three investors collectively contributing $15 million to the company.
Additionally, the Justice Department says Sherbacow misled an individual lender about the company’s true financial status.
Alder Renewables expressed satisfaction with the sentence, acknowledging the substantial amount stolen by Sherbacow.
The company stated it was eager to move past this difficult chapter.
The case highlights the severe repercussions of financial misconduct and the importance of transparency and accountability in corporate governance.
