Lubbock businessman locked up on $50 million fraud charges - KCBD NewsChannel 11 Lubbock

Lubbock businessman locked up on $50 million fraud charges

Jeff and Crissy Gunselman Jeff and Crissy Gunselman

Jeffrey Gunselman, 30, cannot go free from custody in San Antonio, as ruled Tuesday by a federal judge. A federal Magistrate in San Antonio intended to let Gunsleman out of jail on conditions of release. Federal prosecutors objected, so his release, at least for now, was overruled by the judge.

Gunselman is the CEO of Lubbock-based Absolute Fuels. Until recently, he lived in Lubbock. 

Prosecutors say in court records, ".. .Gunselman is a flight risk because he violated and failed to abide by voluntary agreements entered into by him, his lawyers, and the government that he was reside in Lubbock..."

Gunselman and his company are accused of $50 million in wire fraud related to Renewable Identification Numbers or RINs.  The company did try to create bio-diesel fuel associated with the renewable energy credits.  However, none of the fuel could pass quality standards.  And the feds argue in court records that Gunselman knew the status of his production and sold the credits anyway.

On Tuesday prosecutors took it a step further, saying in court records, "Gunselman is a danger to the community because of his continued false and fraudulent misrepresentations regarding his production of bio-diesel fuel, and continuing to represent to others ... that his facilities produced and are capable of producing bio-diesel fuel."

Gunselman's attorney, according to court records revealed on Tuesday, is Dan Cogdell.  That's the same attorney who represented Lubbock's nationally known terror suspect Khalid Aldawsari.

Gunselman has not yet had an arraignment so he has neither pleaded guilty nor not guilty.  

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