Lubbock man must stay in custody in fraud case

July 25, 2012 6:20:44 AM PDT
One judge has reversed another and ordered a West Texas businessman named in a $50 million biodiesel fuel fraud investigation to remain in custody.

U.S. District Judge Sam Cummings in Lubbock on Tuesday did not immediately set a hearing date for Jeffrey David Gunselman. The Lubbock man recently moved to a $2 million home in Boerne (BER'-nee), about 25 miles northwest of San Antonio.

Prosecutors say Gunselman, who was arrested July 19, did not get required government permission to relocate.

A complaint charges Gunselman and his now-defunct Absolute Fuels LLC with wire fraud.

A magistrate in San Antonio earlier Tuesday agreed to bond for Gunselman. His attorney says Gunselman has cooperated to help investigators retrieve $15 million in assets.

Cummings stayed the bond after being advised by prosecutors.

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