Bryan Sherbacow, the founder and former CEO of sustainable aviation fuel company Alder Fuels, was charged in a multimillion-dollar embezzlement scheme by the US Department of Justice (DOJ) on Friday (May 5).
Sherbacow had already been fired from the fuel company in late December after its board of directors found evidence he stole company profits. Now, Sherbacow is criminally accused of embezzling at least $5.9 million in company funds. He’s been charged with two counts of wire fraud and two counts of engaging in transactions derived from unlawful activity.
The indictment revealed the former CEO allegedly used the profits to buy expensive sports cars, a beach club membership, and the installation of an audio-visual system in a personal residence.
According to federal authorities, Sherbacow attempted to hide his crimes by falsifying financial records to other employees at the company, including members of the board of directors. If convicted, he could face a maximum penalty of 20 years in prison.
What is Alder Fuels?
Alder Fuels, headquartered in Washington D.C., produces sustainable aviation fuel by liquifying biomass residues—things like corn stover, cereal straw, or brush made from forest thinning—into something called “greencrude.”
The company then ships the product to refineries to process it into finished fuel, creating low-carbon alternatives for an industry (aviation) that is difficult to decarbonize.
In 2021, Alder Fuels said it received a multimillion-dollar investment from United and Honeywell, two major aviation companies. United also agreed to purchase 1.5 billion gallons of the company’s fuel.
Alder Fuels did not immediately respond to a request for comment about the charges against Bryan Sherbacow.
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