Prison Yard, TFP File Photo

Missouri Man Sentenced To Prison For Orchestrating Refrigerant Ponzi Scheme

Prison Yard, TFP File Photo
Prison Yard, TFP File Photo

A 68-year-old Missouri man has been sentenced to federal prison for running a Ponzi scheme that defrauded investors out of hundreds of thousands of dollars.

Robert F. Rothluebbers received a 14-month prison sentence and was ordered to repay $287,000 to his victims. U.S. District Judge Audrey G. Fleissig handed down the sentence on Wednesday.

Between 2014 and 2017, Rothluebbers lured investors with false promises of high returns through investments in R-22 refrigerant. He claimed he would buy the refrigerant in bulk at a discounted price and resell it at a 50% profit, capitalizing on the gradual phaseout of R-22.

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However, instead of investing the money as promised, Rothluebbers used it for personal expenses and to pay relatives. He kept the scheme afloat by using funds from new investors to pay off older investors and by making repeated false promises about returning their money.

He also fabricated excuses for his failure to pay, including claims that his bank and the IRS froze his funds.

Many of Rothluebbers’ victims were semi-retired and living on fixed incomes. His fraudulent scheme caused them significant financial hardship, forcing them to spend substantial sums on legal fees in attempts to recover their investments.

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Rothluebbers pleaded guilty in September to one count of wire fraud. In addition to the prison sentence and restitution order, he will also be subject to three years of supervised release following his prison term.

The FBI investigated the case, and Assistant U.S. Attorney Jonathan Clow prosecuted it.

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