Jail for operator of R22 Ponzi scheme
16th January 2025
USA: A man from St Louis, Missouri, has been jailed for operating a Ponzi scheme based on trading in ozone-depleting R22.
Robert F Rothluebbers solicited investments by falsely claiming that he would use the money to purchase R22 refrigerant in bulk, at a discount, and then re-sell the refrigerant to contractors and others at a 50% profit. Rothluebbers claimed that the gradual phaseout of R22 would enable him to increase investors’ profits.
Between October 2014 and May of 2017, 68-year-old Rothluebbers, raised at least $350,000 from four investors.
Rothluebbers used the investors’ money for personal purchases and to pay relatives. He also kept the scheme alive by paying old investors with money from new investors and by repeatedly making false promises that he would return the victims’ money. He then provided bogus excuses for failing to pay his investors, including a claim that the money had been frozen by his financial institution and the Internal Revenue Service.
Many of Rothluebbers’ victims were semi-retired and living on fixed incomes. His scheme also forced them to pay considerable sums of money on civil lawsuits and attorneys’ fees in an attempt to reclaim their money.
The majority of the funds were never repaid.
Rothluebbers pleaded guilty in September to one count of wire fraud. He was sentenced yesterday to 14 months in prison and ordered to repay $287,000 to victims.
