JOHN RIMMASCH AND WRRC GUILTY ON ALL COUNTS

wilkinsd · **Posted:** Sun Apr 24, 2022 5:45 pm

The maximum sentence you often see published in media reports is very inaccurate. It's the maximum sentence for each charge, added together. Sometimes, in rare circumstances, a judge will "stack" a sentence like that, which means a convict would serve each sentence separately and consecutively. Most of the time, a convict serves sentence concurrently, or all at once. There are federal sentencing guidelines, which go through all of the factors to aid judges in determining sentences. Given the first offense, I don't see anyone getting the maximum.

Alexander D. Mitchell IV · **Posted:** Sun Apr 24, 2022 6:32 pm

wilkinsd wrote:

The maximum sentence you often see published in media reports is very inaccurate. It's the maximum sentence for each charge, added together. Sometimes, in rare circumstances, a judge will "stack" a sentence like that, which means a convict would serve each sentence separately and consecutively. Most of the time, a convict serves sentence concurrently, or all at once. There are federal sentencing guidelines, which go through all of the factors to aid judges in determining sentences. Given the first offense, I don't see anyone getting the maximum.

Such "stacking" of sentences is usually reserved for 1) particularly heinous crimes where 2) massive media spotlighting and coverage has made it all but impossible for a judge to apply normal sentencing guidelines without being "crucified" by the media, the "digital lynch mob" that would call for his/her removal from office, and opportunistic politicians eager to depict a judge/system as "soft on crime"........

None of those seem to apply in this case. Not even among this crowd.

co614 · **Posted:** Sun Apr 24, 2022 8:51 pm

I would think that the on going investigation into the fatal accident at the Wasatch Railroad Contractors Wyoming freight car shop would be more perilous for Rimmasch than the sentence he will receive in July???

No one thinks he'll get anything remotely close to 95 years in prison for what he was found guilty of.

We'll know soon enough. Ross Rowland

msrlha_archivist · **Joined:** Sat Mar 02, 2013 3:33 pm **Posts:** 139

Though I have no dog in this fight, as a tax payer, I have no interest in financing Rimmasch's prison sentence. Though he would be confined and removed from the social world, a prison sentence is a bit of a "cop out" as you take a vacation from your responsibilities. I'd rather see him get 20 years of public service and pay back every cent he owes.

Richard Glueck · **Posted:** Mon Apr 25, 2022 9:12 am

Rather than re-read everything in this thread, would someone cut to the chase here and post what became of the historic CNJ coach?
I shudder when I think of how that money could have been used at Steamtown shops.

co614 · **Posted:** Mon Apr 25, 2022 11:01 am

Richard makes a VERY valid point. Even in the highly red taped Scranton shop ( 16 years to restore a little 0-6-0 ) $ 800,000 could do some good ( finish the B&M Pacific ? ) .

Let's hope Rimmasch still has some of it squirreled away to help him pay the anticipated heavy fine coming at his July sentencing??

Ross Rowland

JR May · **Posted:** Mon Apr 25, 2022 11:42 am

> Rather than re-read everything in this thread, would someone cut to the chase here and post what became of the
> historic CNJ coach?

That is a bit of a mystery. To that end I submitted a FOIA request for the CNJ coach contract (INP16PC00370) to include base contract, all modifications, delivery orders, and change orders has been pending for several months now. As of February 2022, there were "4 Simple and 8 Normal requests pending ahead" of my request. 50+ pages of material have been identified under my request. This material should answer many of the questions regarding the work done on the coach beyond the asbestos. Interestingly, the DoD handles such things in a much more timely fashion which brings up the question as to why a fairly simple request is taking so long.

J.R. May

Randy Gustafson · **Posted:** Mon Apr 25, 2022 12:03 pm

In the Iowa Pacific bankruptcy, the entire corporation and subsidiaries were filed at the same time under involuntary basis including the operating companies AND the leasing company that held the equipment. I don't know what's happened here and whether or not any assets were held outside the car repair operating company, but a savvy attorney is usually aware of that.

There's nothing illegal about a subsidiary company owning assets and 'leasing' them to various operating companies; I see that all the time for locomotives. When you're looking at the profitability of an operating entity, you always want to look for sweetheart operating leases that are effectively moving profit to another subsidiary in the same ownership group. Other than it can distort the operating company and attempt to shield assets, it's relatively common.

Interestingly enough, I noted that IP's equipment leasing company under Chapter 11 is still active on the court docket as late as this month. There is a process, but Chapter 7 is pure liquidation, not reorganization.

We have a local car repair shop here that hit a relatively hefty OSHA fine that effectively liquidated as a result, sold all the assets at auction, and went away - to be replaced by an unrelated firm in the same building doing effectively the same work. And that one didn't involve any injuries at all, just safety conditions.

rem1028 · **Joined:** Tue Jan 24, 2017 10:32 am **Posts:** 272

My feeling is that no matter how much money may come in, as long as the current management remains in charge at Steamtown, the Pacific will never get done.

John

Chris Webster · **Joined:** Sat Aug 25, 2007 12:45 am **Posts:** 1029

An April 25, 2022 Press Release from the Department of Justice, U.S. Attorney's Office, District of Wyoming:

Quote:

FOR IMMEDIATE RELEASE
Monday, April 25, 2022

WASATCH RAILROAD CONTRACTORS AND ITS CHIEF EXECUTIVE OFFICER FOUND GUILTY OF ALL CHARGES

United States Attorney Bob Murray announced today that JOHN ELDON RIMMASCH, 47, of Cheyenne, Wyoming, and WASATCH RAILROAD CONTRACTORS (“WASATCH”), incorporated in Wyoming in 2005, were found guilty by a federal jury on five counts of wire fraud and one count of knowing endangerment. The trial took place April 4 through 13, 2022 before Federal District Court Judge Alan B. Johnson. Sentencing has been set for July 5, 2022.

Headquartered in Cheyenne, Wyoming, Wasatch also operated a facility in Shoshoni, Wyoming. The company performed repair and restoration on freight cars and its Wasatch Railroad Contractors division purported to specialize in restoring historic railroad equipment. John Eldon Rimmasch is the founder and owner of Wasatch and served as its Chief Executive Officer.

This case arose after Wasatch entered a contract to restore a historic railcar owned by the National Park Service. Wasatch failed to complete the restoration, and in the process, endangered its employees by exposing them to asbestos without proper safety measures. Nevertheless, through directives of its owner, John Rimmasch, Wasatch invoiced the National Park Service certifying that it performed the asbestos abatement pursuant to the contract, knowing full well it had not. The contract also obligated Wasatch to pay Davis Bacon wages to its laborers, which Wasatch failed to do. Rimmasch, however, directed others to knowingly submit false certified payrolls to the National Park Service stating his employees were paid the minimum Davis Bacon wage. Rimmasch knew that compliance with the contract was necessary to receive the $800,000 payment from the National Park Service, which was received.

Wasatch and Rimmasch were indicted on 5 counts of wire fraud for knowingly submitting false invoices and payrolls to the NPS for payment. Both were also indicted on one count of knowingly releasing asbestos and placing Wasatch’s employees in imminent danger of death or serious bodily injury.

If convicted on all counts, Rimmasch faces up to 115 years imprisonment and up to $1.5 million in fines, $600 in special assessments and up to three years of supervised release. Wasatch could face up to $2.25 million in fines.

The crimes were investigated by the United States Department of the Interior, Office of the Inspector General, and the United States Environmental Protection Agency. Assistant United States Attorney Stephanie I. Sprecher and Special Assistant United States Attorney Richard Baird are prosecuting the case.

Dave · **Posted:** Mon Apr 25, 2022 5:46 pm

Eldon?

Kelly Anderson · **Joined:** Tue Sep 14, 2004 7:52 am **Posts:** 2477

Richard Glueck wrote:

Rather than re-read everything in this thread, would someone cut to the chase here and post what became of the historic CNJ coach?
I shudder when I think of how that money could have been used at Steamtown shops.

I suspect that the car is still at the former Wasatch shops in Shasoni, WY.

Had this boondoggle never happened, I suspect Steamtown never would have seen a penny of that money. Like how I understand the RRMPA's situation, the state museum commission takes every cent they take in, then gives them back the budgeted amount, and not a penny more.

Overmod · **Joined:** Thu May 24, 2012 1:37 pm **Posts:** 2492

Is that the actual wording of the April 25th press release? If so, it's mightly sloppy in what may be an interesting way.

Note that the things it says Rimmasch was fould guilty of were the five invoices stating the abatement had been accomplished, and the submission of documentation that Davis-Bacon wages had been paid when they weren't.

Mention is made later of the objectively more serious failure to handle asbestos safely, and the worker deaths. As if there had been no trial verdict yet.

My education in these matters (by one of the agents tasked to fish, and then hammer, violations of Federal fair housing policies) is that the press coverage and general 'publicity efforts' by the government stress ALL the infractions that can be found under strict scrutiny, in the least favorable light, pour encourager les autres. I was given to understand that Rimmasch had been found guilty of the actual asbestos and death charges -- therefore, the press release's concentration on nominal paper offenses more than puzzles me. Were there two trials? And, if so, why is the one reported 'earlier' -- it was the original subject of this all-capitals-titled thread -- apparently unknown to the Feds as late as yesterday?

co614 · **Posted:** Tue Apr 26, 2022 9:15 am

Mr. Ellsworth, the trial was limited to the matters concerning the NPS ex-CNJ coach and did not include any matters relating to the fatal accident which killed two Wasatch RR Contractors workers.

It is my understanding that the fatal accident incident is under active investigation by OSHA with a finding to be issued in several months.

Perhaps attorney Wilkins will have thoughts on your other points??

It appears that the guesstimates on the street are that he'll get somewhere between 0-3 years prison time, 2-5 years probation and a stiff fine.

We'll all know come July. Ross Rowland

RailMech3 · **Joined:** Sun Jan 02, 2022 10:21 am **Posts:** 56

BSFSRYFAN wrote:

Yesterday a federal judge entered an order begining the process to seize the home of John Rimmasch and the car shop facility in Shoshone WY. Its attached below. Properties will be sold to pay back the 861,000$ the federal government paid WRRC.

In my opinion this is going a little too far. Why don’t we let the guy have piece and just await the sentencing…

There is a lot sad here, I mean anyone with a heart should be able to see that. His wife and kids will have to live with this for the rest of their lives. I think we should give them SOME privacy.

But BSFSRYFAN, you’re probably just beyond excited because you wanted to see this happen. Sadly enough for you, it doesn’t sound like their will be much left over to pay back for the other lawsuit. $861,000 is a lot of money. I imagine this is probably really bad new for the K&T because the federal government probably will get their money first. Then creditors, then if there’s any pennys leftover that’ll go to K&T…

So can we now let the guy and his family have some peace? At least until the sentencing…

JOHN RIMMASCH AND WRRC GUILTY ON ALL COUNTS

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