A St. Louis man pleaded guilty on Monday in U.S. District Court to operating a Ponzi scheme that raised $350,000 over nearly a decade. Robert F. Rothluebbers, 68, admitted to one count of wire fraud, confessing that he ran the scheme from October 2014 through January 2024.
Rothluebbers enticed investors by falsely claiming he would use their funds to purchase R-22 refrigerant in bulk at a discounted price and resell it to contractors at a 50% profit. He also told investors that the gradual phaseout of R-22 would boost their profits significantly, however, Rothluebbers never made these bulk purchases and instead used the funds from new investors to repay earlier investors and finance personal expenses.
Between October 2014 and May 2017, Rothluebbers entered into written purchase agreements with investors, agreeing to buy specific amounts of R-22 at set prices and guarantee a minimum resale price. In reality, the investments never materialized, and Rothluebbers provided false explanations for not making the payments, claiming issues with financial institutions and the Internal Revenue Service.
Rothluebbers admitted to collecting at least $350,000 from four investors and making Ponzi scheme payments totaling $171,450, mostly after investors began to uncover the fraud.
Sentencing for Rothluebbers is scheduled for December 12. The charge of wire fraud carries a penalty of up to 20 years in prison and a $250,000 fine, or both.
The FBI investigated the case, and Assistant U.S. Attorney Jonathan Clow is handling the prosecution.
