U. S. Attorney Sayler A. Fleming | US Attorney - Eastern District of Missouri
U. S. Attorney Sayler A. Fleming | US Attorney - Eastern District of Missouri
A St. Louis, Missouri man admitted on Monday to operating a Ponzi scheme for nearly a decade, raising $350,000.
Robert F. Rothluebbers, 68, pleaded guilty in U.S. District Court in St. Louis to one count of wire fraud. He acknowledged running the scheme from October 2014 through January 2024. Rothluebbers solicited investments by falsely claiming he would use their money to purchase R-22 refrigerant in bulk at a discount and then resell it to contractors and others at a 50% profit. He asserted that the gradual phaseout of R-22 would enable him to increase investors’ profits.
From October 2014 to May 2017, Rothluebbers entered into written purchase agreements with investors, agreeing to buy specified amounts of R-22 at certain prices and guaranteeing a minimum resale price. However, he admitted using investors' money to pay earlier investors, relatives, or for personal purchases.
Rothluebbers provided false excuses for failing to pay investors back, including claims that his financial institution and the Internal Revenue Service had frozen the funds.
He confessed to raising at least $350,000 from four investors and making Ponzi scheme payments totaling $171,450 after investors discovered his fraudulent activities.
Rothluebbers is scheduled for sentencing on December 12. Wire fraud carries a potential penalty of up to 20 years in prison and a $250,000 fine or both.
The FBI investigated the case while Assistant U.S. Attorney Jonathan Clow is prosecuting it.
Alerts Sign-up