Rolf Ramelmeier, Mail Fraud & Money Laundering, Maryland 2024

Baltimore, Maryland – A brazen scheme to swindle Northrop Grumman Corporation of more than $11 million has finally come to an end, with Rolf Ramelmeier, a 78-year-old Sykesville, Maryland business owner, pleading guilty to mail fraud and money laundering charges.

According to court documents, Ramelmeier, who owned and operated JADM. Inc., a company that sold or brokered natural gas sales, engaged in a scheme to defraud Northrop Grumman Corporation of more than $11 million between 2003 and December 2013. Ramelmeier, who exercised complete control and authority over JADM, obtained natural gas from suppliers UGI Energy Services (UGI) or Potomac Electric Power Company (PEPCO) and had Baltimore Gas and Electric Company (BG&E) transport the gas to Northrop Grumman facilities in Linthicum, Maryland.

Ramelmeier would then issue monthly invoices to Northrop Grumman, specifying the units of gas delivered and the cost per unit. However, Ramelmeier deliberately overcharged Northrop Grumman for the amount of natural gas delivered, falsifying invoices and other documents to conceal the scheme. He also used a false corporate identity and bank accounts in the names of shell entities to carry out the fraud.

Specifically, Ramelmeier represented himself as a gas broker and led UGI or PEPCO personnel to believe that their company was entering into a sales contract directly with Northrop Grumman when, in fact, Northrop Grumman had no knowledge of these agreements. Under the agreements, UGI and PEPCO were required to submit their invoices to Northrop Grumman by mailing them to a post office box in Roanoke Rapids, North Carolina, and by emailing a copy of each invoice to Ramelmeier at JADM.

Ramelmeier created invoices on JADM letterhead that charged Northrop Grumman for more than the amount of natural gas that UGI or PEPCO had invoiced. Northrop Grumman then paid JADM on the inflated invoices, first by check and then by wire transfer to JADM’s bank account. Ramelmeier transferred those payments from the JADM account into a bank account in the name of Consolidated Fuel Atlantic (Consolidated), a shell company with no assets or business.

As a result of the fraudulent scheme, Ramelmeier caused Northrop Grumman to pay him at least $11,238,519 for natural gas that was never actually provided. Ramelmeier’s scheme was finally uncovered in December 2013, when Northrop Grumman noticed unusual charges by JADM for natural gas purportedly used at the Linthicum facilities.

Ramelmeier is currently facing a sentence of up to 20 years in prison, fines, and restitution. He is expected to be sentenced by a federal court in the near future. The case is a stark reminder of the devastating consequences of white-collar crime and the importance of vigilant financial oversight.

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