Former Pinnacle Airlines Employee Pleads Guilty in $1.1 Million Fraud Scheme

MEMPHIS—Frank Richard Raasch, age 38, formerly of Lakeland, Tennessee, pled guilty to one count of wire fraud yesterday before U.S. District Court Judge Samuel Hardy Mays, Jr., announced United States Attorney Edward L. Stanton, III.

According to the one-count criminal information and statement of facts made by Assistant United States Attorney, Carroll L. Andre, III to U.S. District Judge Samuel Hardy Mays, Jr., Raasch was employed as director of information technology-major projects and transition by Pinnacle and previously by Mesaba Airlines. Mesaba was purchased by Pinnacle in June 2010. Between 2007 and November 2011, when Raasch was terminated, Raasch submitted fraudulent invoices in the name of a fictitious company, Friday Consulting Group, which Raasch controlled. Once the invoices were approved, Pinnacle issued checks for payment, and Raasch deposited the checks to bank accounts he controlled and withdrew the funds. As a result of the scheme, Raasch fraudulently obtained approximately $1.1 million.

Raasch will be sentenced on June 28, 2012 at 3:00 p.m. He faces up to 20 years’ imprisonment and a fine of up to $250,000.

“The United States Attorney’s Office is committed to not only prosecuting violent crime, but white collar crime such as wire fraud,” stated United States Attorney Edward L. Stanton, III. “When employees put into motion fraudulent schemes to illegally divert funds and place those funds in accounts for their own selfish gain, they will be prosecuted. Our office will make sure that these individuals are held accountable for their actions and vigorously prosecuted to the fullest extent of the law.”

This case was investigated by Federal Bureau of Investigation and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Carroll L. Andre, III on behalf of the government.