Bryan Sher Bacow, founder and ex-CEO of a sustainable fuel company, was today sentenced to three years in prison for leading a scheme to thieve at least $5.9 million and defraud investors of about $15 million.
Sher Bacow, 55, of Charleston, South Carolina, and Washington, D.C., engaged in his scheme from 2021 through early 2022. As alleged in the charging documents, Sher Bacow fraudulently transferred company funds into his personal account and used company accounts to pay for unauthorized personal expenses, including a vintage Mercedes-Benz sports car, a Range Rover SUV, art auction payments, personal tax liens, credit card bills, personal residential rent, a beach club membership, electronics, and a condominium down payment.
How Bryan Sher Bacow Generated Fake Documents ?
To cover up his activities, Sher Bacow furnished the outside accounting firm for the company and board members with falsified financial records and doctored bank statements. He prepared bank statements doctored in minute details to conceal the transfers to his personal account, believing that his account would give the illusory impression that the company’s financial situation was significantly better than reality. This fraud was also committed against the investors and potential investors whom Sher Bacow solicited to inject more money into the company.
How Bryan Sher Bacow Executes his Plans for Investor Fraud
Sher Bacow conducted his fraud by providing doctored bank statements and other falsified financial documents to investors. For example, Sher Bacow provided two investors with the bank statement of another investor, removing any indication of unauthorized transfers into his personal account. He also falsified the amounts of account balances to artificially inflate the amount of cash reserves held by the company. Relying on the information provided by Sher Bacow, three investors collectively invested $15 million in the company, believing it was in good financial standing.
Sher Bacow also misled an individual who had loaned money to the company regarding its financial position, compounding the financial chaos he created. By providing such false information and in such large quantities, Sher Bacow has shown the extent to which he defrauded the company and its investors.
Bryan Sher Bacow’s Fraudulent Schemes
Principal deputy assistant attorney general Nicole M. Argientieri of the justice department criminal division and FBI (Federal Bureau of Investigation) officials make the announcement. The FBI’s Washington Field Office and the Defense Criminal Investigative Service’s (DCIS) Charleston Resident Agency conducted the investigation, and after that, they uncovered the extent of Sher Bacow’s fraud schemes.
Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, Assistant Director in Charge David Sundberg of the FBI Washington Field Office, and Director Kelly Mayo of the DCIS contributed important efforts to the case. The case was prosecuted by Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section.
Bryan Sher Bacow Behind the bars
The sentence by Sher Bacow is there to remind us of the consequences of financial fraud and thieving. The case highlights the importance of transparency and accountability in corporate governance, especially in industries like sustainable fuel, which heavily rely on investor trust and funding. The swiftness of the action through law enforcement and the justice system shows protection of investors and maintenance of the integrity of the financial system.
What Bryan Sher Bacow did was act in a fraudulent manner, not only damaging the very financial health of the company he co-founded but also betraying the trust of investors and stakeholders. Bryan Sher Bacow finally pleaded guilty on February 8, 2024, for his frauds and schemes. His three-year prison sentence really does reflect the gravity of his offenses and serves as a deterrent to others who might consider similar schemes.
