Cheyenne, WY – Wasatch Railroad Contractors, a Cheyenne-based railway repair and restoration company, and its founder, John Eldon Rimmasch, have been brought to justice for a scheme that knowingly exposed employees to dangerous asbestos levels and defrauded the National Park Service. The case, culminating in a federal jury verdict and sentencing in July 2022, reveals a callous disregard for worker safety and a calculated effort to prioritize profit over human well-being.
The investigation began after Wasatch entered into a contract with the National Park Service to restore a historic railcar. Instead of fulfilling the terms of the agreement, Rimmasch directed the company to proceed with the restoration despite known asbestos contamination, failing to implement necessary safety measures to protect his 30 employees. These employees were placed in imminent danger of death or serious bodily injury through prolonged exposure to the hazardous material.
Prosecutors presented evidence demonstrating that Rimmasch not only knowingly endangered his workforce but also actively concealed the truth from the National Park Service. Wasatch submitted invoices falsely certifying that asbestos abatement had been completed, allowing the company to receive payment for work that was never performed. This constituted a clear case of wire fraud, leveraging interstate communication to facilitate a criminal scheme.
Legal Ramifications
The federal jury found Wasatch Railroad Contractors and Rimmasch guilty on five counts of wire fraud, violating 18 U.S.C. 1343, and one count of knowing endangerment, a violation of the Clean Air Act – specifically 42 U.S.C. 7413(c)(5). During sentencing, Judge Johnson highlighted Rimmasch’s attempt to obstruct justice by introducing fraudulent evidence during the trial and his abuse of trust as a company executive.
Sentencing & Restitution
On July 11, 2022, Rimmasch received a 30-month term of imprisonment, along with a mandate to perform 100 hours of community service and serve three years of supervised release upon completion of his sentence. He was also ordered to pay $7,428 in restitution, jointly with the now-defunct Wasatch Railroad Contractors. The company itself is no longer operational, effectively ending its fraudulent and dangerous practices.
Key Facts
- Defendant: Wasatch Railroad Contractors & John Eldon Rimmasch
- Location: Cheyenne & Shoshoni, Wyoming
- Victim: National Park Service & 30 Wasatch Employees
- Crime: Wire Fraud & Knowing Endangerment (Asbestos Exposure)
- Statutes Violated: 42 U.S.C. 7413(c)(5), 18 U.S.C. 1343
- Sentence: 30 months imprisonment, $7,428 restitution, community service, supervised release
This case serves as a stark reminder of the potential consequences of prioritizing profits over worker safety and underscores the EPA’s commitment to vigorously prosecuting environmental crimes and holding responsible parties accountable.
Source: EPA ECHO Enforcement Case Database
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