John Eldon Rimmasch, Wire Fraud, Wyoming 2022

Cheyenne, WY – Wasatch Railroad Contractors, a Cheyenne-based company specializing in railcar restoration, and its founder, John Eldon Rimmasch, have been convicted of federal crimes stemming from a fraudulent contract with the National Park Service and the subsequent endangerment of employees through asbestos exposure. The case, brought to light by an EPA criminal investigation, highlights a blatant disregard for worker safety and a calculated attempt to deceive a government agency.

According to court documents, Wasatch entered into an agreement to restore a historic railcar owned by the National Park Service. However, the company failed to complete the work and, more disturbingly, knowingly exposed 30 employees to dangerous levels of asbestos while performing the restoration at their Shoshoni, Wyoming facility. Despite lacking proper safety measures, Rimmasch directed the company to invoice the National Park Service, falsely certifying that asbestos abatement had been correctly performed – a clear act of wire fraud.

The case unfolded after concerns were raised regarding the lack of completion of the railcar restoration and potential safety violations. Investigators discovered that Wasatch, under Rimmasch’s direction, deliberately circumvented safety protocols designed to protect workers from the deadly effects of asbestos. Employees were put in imminent danger of both serious bodily injury and death due to the negligent handling of the hazardous material.

A federal jury found both Wasatch Railroad Contractors and Rimmasch guilty on five counts of wire fraud, violating 18 U.S.C. 1343, and one count of knowingly endangering employees, violating 42 U.S.C. 7413(c)(5) of the Clean Air Act. The prosecution successfully argued that Rimmasch not only permitted the unsafe conditions but actively concealed them through fraudulent billing practices.

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Sentencing and Obstruction

At the sentencing hearing, Judge Johnson noted that Rimmasch attempted to obstruct justice by presenting a fraudulent exhibit during the jury trial, further demonstrating a pattern of deceitful behavior. The judge also found that Rimmasch abused his position of trust as CEO during the commission of the crimes. On July 11, 2022, Rimmasch was sentenced to 30 months of imprisonment, along with 100 hours of community service and three years of supervised release on each count, to run concurrently. He was also ordered to pay $7,428 in restitution, jointly with the now-defunct Wasatch Railroad Contractors.

Key Facts

Defendant: Wasatch Railroad Contractors & John Eldon Rimmasch
Location: Cheyenne & Shoshoni, Wyoming
Victim: National Park Service & 30 Wasatch Employees
Crimes: Wire Fraud & Knowing Endangerment (Asbestos Exposure)
Statutes Violated: 18 U.S.C. 1343, 42 U.S.C. 7413(c)(5)
Penalties: 30 months imprisonment, $7,428 restitution, supervised release, community service

The case serves as a stark reminder of the importance of adhering to safety regulations, particularly when dealing with hazardous materials like asbestos. Federal authorities are committed to prosecuting individuals and companies who prioritize profit over the well-being of their employees and attempt to defraud government agencies.

Source: EPA ECHO Enforcement Case Database

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