The founder and former CEO of a sustainable fuel company, Bryan Sherbacow, 55, was sentenced to three years in prison today for embezzling at least $5.9 million and defrauding investors of approximately $15 million.
Between 2021 and 2022, Sherbacow, from Charleston, South Carolina, and Washington, D.C., misappropriated funds from the company he co-founded by transferring them to his personal bank account and making unauthorized expenditures from a company account. To cover his tracks, Sherbacow sent altered bank statements and falsified financial records to the company's accounting firm and board members. He used the embezzled funds to purchase a vintage Mercedes-Benz, a Range Rover, art, pay personal tax liens and credit card bills, cover rent, and make other personal expenses, including a down payment on a condominium.
In his attempts to raise additional funds, Sherbacow also sent falsified financial records to investors. This included sending a fabricated bank statement that concealed his unauthorized transfers and overstated the company's available cash. This deception led three investors to contribute approximately $15 million to the company. Additionally, Sherbacow misled an individual lender about the company's financial condition.
Sherbacow pleaded guilty to wire fraud on February 8. Principal Deputy Assistant Attorney General Nicole M. Argentieri, FBI Assistant Director Michael Nordwall, FBI Washington Field Office Assistant Director in Charge David Sundberg, and DCIS Director Kelly Mayo announced the sentencing. The FBI Washington Field Office and DCIS Charleston Resident Agency conducted the investigation, and Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section prosecuted the case.
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