Alder Fuels founder jailed for embezzlement

Bryan Sherbacow, former CEO and founder of company Alder Fuels, was sentenced to three years in prison today for embezzling millions of dollars and defrauding investors.

Sherbacow, 55, used his position to steal $5.9m for personal expenses between January 2021 to December 2022. This included a vintage Mercedes-Benz sports car, a Range Rover sport utility vehicle, payments to an art auction house, personal tax liens, personal credit card payments, rent payments on personal residences, payment to a beach club, electronics, and a down payment on a condo.

In a bid to avoid harsher penalties, Sherbacow admitted guilt on February 8th to a single count of wire fraud. This plea deal came on the heels of two more serious charges: additional counts of wire fraud and engaging in financial transactions with money derived from illegal activity.

According to court documents, Sherbacow tried to hide his crimes by sending fake financial statements to the company’s accountants and board members.

He also misled investors with fabricated bank statements showing the company had more cash than it actually did. This resulted in at least $15m in investments based on false information.

Alder Fuels board terminated Sherbacow in February 2023. The company in a detailed statement said Sherbacow had been using company funds for personal use.

“As a result of enhanced management processes, the company uncovered that the now-former CEO, Bryan Sherbacow, engaged in questionable financial transactions that benefited him personally. Upon discovery, the Board immediately commenced a comprehensive review of the transactions and terminated Mr. Sherbacow for cause. Simultaneously, the Board appointed Tim Obitts as Acting CEO to lead the company forward,” said a statement issued by Alder Fuels.