Man operated a Ponzi scheme dealing in R22
9th September 2024
USA: A man from St Louis, Missouri has admitted operating a Ponzi scheme linked to the trade in ozone-depleting R22 refrigerant.
Robert F Rothluebbers, 68, pleaded guilty in US District Court in St Louis to one count of wire fraud, admitting that he operated the scheme that raised $350,000 from October 2014 to January 2024.
Rothluebbers solicited investments by falsely claiming that he would use investors’ 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.
He is said to have solicited investors from October 2014 to May 2017, entering into written purchase agreements in which he agreed to the purchase of specified amounts of R22 at certain prices, and a minimum resale price. But Rothluebbers admitted using investors’ money to pay earlier investors, pay relatives or for personal purchases.
Rothluebbers raised at least $350,000 from four investors. He admitted paying Ponzi scheme payments of $171,450, mostly after investors discovered his scheme.
Rothluebbers is scheduled to be sentenced on December 12. Wire fraud is punishable by up to 20 years in prison, a $250,000 fine or both prison and fine.
