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Monday, May 09, 2016

Gilbert R. Rousseau, of North Hollywood, Calif.,Guilty in Biofules Stock Fraud


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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