A co-founder and former CEO of a sustainable fuel company pleaded guilty Thursday to wire fraud in connection to a multimillion-dollar embezzlement scheme.
Bryan Sherbacow, 55, of Charleston, South Carolina, and Washington, D.C. was indicted by federal prosecutors in May 2023 for allegedly embezzling at least $5.9 million and defrauding investors out of $15 million when CEO of the biomass aviation fuel startup Alder Fuels.
In court documents, federal prosecutors alleged Sherbacow defrauded the company he co-founded between 2021 and 2022 by transferring company funds to his personal bank account, and by making unauthorized personal expenditures from a company bank account.
The federal indictment accused Sherbacow of attempting to conceal his embezzlement scheme by emailing altered bank statements and other fraudulent financial records to the company’s accounting firm.
The millions of dollars in embezzled funds were allegedly used by Sherbacow to pay for several luxury items, including a vintage Mercedes-Benz sports car, a Range Rover sport utility vehicle, payments to an art auction operator and a beach club, a down payment on a condo, and electronics.
Sherbacow pleaded guilty to one count of wire fraud Thursday, a charge that carries a maximum penalty of 20 years in prison.
He is scheduled to be sentenced on May 16, 2024.