Texas Man Faces Sentencing in Biodiesel Scam

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A West Texas businessman who pleaded guilty to federal fraud and money laundering charges stemming from a $42 million biodiesel scam is scheduled to be sentenced Friday.

Jeffrey David Gunselman of Lubbock will appear before U.S. District Judge Sam Cummings for sentencing on 51 counts of wire fraud and 24 counts of money laundering.

Gunselman pleaded guilty in December to those charges as well as four counts of making false statements in violation of the Clean Air Act.

The 30-year-old Gunselman orchestrated a scheme that sold federal renewable fuel credits to oil refiners and brokers without making the biodiesel to go with the credits.

Some of the proceeds went to buy a $2.65 million house, a $1.6 million Gulfstream G3 jet and $166,720 in San Antonio Spurs season tickets.