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Former Sustainable Fuel Company CEO Accused of Embezzling $5.9M

He was fired following a review of “questionable financial transactions.”

A federal grand jury in Washington, D.C., returned an indictment that charges a founder and former CEO of a sustainable aviation fuel company with three counts of wire fraud and two counts of engaging in monetary transactions in property derived from unlawful activity.

The accused, Bryan Sherbacow, allegedly embezzled nearly $6 million from his former company, Alder Fuels, according to a Department of Justice release.

Court documents accuse Sherbacow of fraudulently transferring company funds to a personal bank account and making unauthorized personal expenditures from a company bank account. 

Sherbacow’s alleged expenses with the embezzled funds include personal tax liens, personal credit card payments, rent payments on his residences, a Range Rover, a vintage Mercedes-Benz, payments to an art auction operator, a down payment on a condo, a payment to a beach club and the installation of an audio-visual system at one of his residences.

Sherbacow allegedly tried to cover up his scheme by emailing altered bank statements and falsified financial records to an Alder Fuels accountant and company board members. 

A conviction could mean a maximum of 20 years in prison.

Sherbacow’s shady practices have been in the news since February when Alder Fuels announced it terminated the former CEO in December after a comprehensive review of “questionable financial transactions.”

Founded in 2021, Alder Fuels aims to replace fossil-based products and convert natural biomass into sustainable aviation fuel. Backers of the company include Honeywell, United Airlines, Boeing and the Department of Energy.

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