Wyoming railroad company, CEO found guilty of wire fraud, endangerment; could face millions in fines

CASPER, Wyo. — A federal grand jury have discovered Cheyenne-based Wasatch Railroad Contractors and the corporate’s CEO John Eldon Rimmasch, 47, responsible of 5 counts of wire fraud and one depend of understanding endangerment, the U.S. Legal professional’s Workplace for the District of Wyoming stated in a press launch Monday.

“This case arose after Wasatch entered a contract to revive a historic railcar owned by the Nationwide Park Service,” the press launch states. “Wasatch failed to finish the restoration, and within the course of, endangered its staff by exposing them to asbestos with out correct security measures.”

Regardless of Wasatch failing to finish the restoration, the corporate invoiced the Nationwide Park Service to certify that it had carried out asbestos abatement pursuant to the contract “understanding full effectively it had not.”

“The contract additionally obligated Wasatch to pay Davis Bacon wages to its laborers, which Wasatch didn’t do,” the press launch provides. “Rimmasch, nevertheless, directed others to knowingly submit false licensed payrolls to the Nationwide Park Service stating his staff have been paid the minimal Davis Bacon wage.”

“Rimmasch knew that compliance with the contract was essential to obtain the $800,000 fee from the Nationwide Park Service, which was obtained.”

The federal grand jury discovered Wasatch and Rimmasch responsible on the conclusion of a trial that came about from April 4-13 earlier than Federal District Court docket Decide Alan B. Johnson, based on the press launch. A sentencing listening to has been set for July 5.

Rimmasch might resist 115 years in jail and as much as $1.5 million in fines. He might additionally resist a $600 particular evaluation and as much as three years supervised launch. Wasatch might resist $2.25 million in fines.

“The crimes have been investigated by the USA Division of the Inside, Workplace of the Inspector Common, and the USA Environmental Safety Company,” thhe press launch states. “Assistant United States Legal professional Stephanie I. Sprecher and Particular Assistant United States Legal professional Richard Baird are prosecuting the case.”