Rousseau and five conspirators
defrauded the victims, many of whom were elderly, by selling them worthless,
unregistered securities
Posted By CotoBlogzz
Rancho Santa Margarita, CA . – Gilbert R. Rousseau, of North Hollywood, Calif., has pleaded guilty
to defrauding 157 persons of over $4 million from 2009 through 2011 by selling
them worthless, unregistered stock in a number of purported biofuels
development businesses, according to announcement by U.S. Attorney Daniel G. Bogden for the
District of Nevada.
Rousseau,
57, pleaded guilty on May 4, 2016, to one count of conspiracy to commit mail
fraud and wire fraud, and agreed to pay restitution of approximately $4.4
million. Rousseau is released on a personal recognizance bond pending
sentencing, and faces up to 20 years in prison and a $250,000 fine.
According to
the plea agreement, from January 2009 to February 2012, Rousseau and five
conspirators defrauded the victims, many of whom were elderly, by selling them
worthless, unregistered securities in the form of stock and stock purchase
warrants in four Nevada limited liability companies.
The companies, Go Green Home Stores, U.S.
Biofuels, Vista Biofuels, and G-Tec Biofuels, were not established or operated
to sell goods or services, but were actually fronts for the fraud scheme.
Rousseau and the conspirators also created and used two other Nevada companies,
G.G.H. Marketing and A.G.M. Marketing Group, to market the worthless
securities. Rousseau and the conspirators set up and operated websites
for the companies that contained material misrepresentations and false promises
to make them look legitimate and designed to get the victims to part with their
money. The victims were solicited throughout the United States by telephone
from call rooms operated by conspirators in California and Las Vegas. Some of
the companies used Las Vegas addresses to receive funds from the victims.
The case was
investigated by the FBI and prosecuted by Assistant U.S. Attorney Daniel J.
Cowhig.
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