On the heels of yesterday’s story about the federal government going after a Renewable Identification Number (RIN) defrauder, it looks like the Securities and Exchange Commission is now going after a biodiesel company owner for a different crime. Biodiesel Magazine reports Paul Marshall, Executive Director of FOGFuels Inc., has been charged with breaking federal securities laws for misappropriating client funds.

According to the commission’s complaint, since at least 2011, Marshall, an investment adviser representative of the Bridge Entities, misappropriated at least $2 million from advisory clients. In its complaint, the commission alleges that Marshall instructed clients, some of whom were elderly, to transfer funds to bank accounts under his control for purported investment in various securities, including mutual funds. Instead, Marshall used those client funds to pay personal expenses, including luxury vacations and private school tuition for his children. The complaint further alleges that Marshall concealed his fraud by providing advisory clients with fabricated account statements.

The charges also say that Marshall misappropriated $100,000 from an advisory client who invested in FOGFuels.

A federal judge froze the assets of Marshall, the Bridge Entities and FOGFuels and is preventing them from destroying documents. A hearing is scheduled for today.