News & Reviews News Wire Railcar restoration firm and owner convicted of fraud, exposing workers to asbestos

Railcar restoration firm and owner convicted of fraud, exposing workers to asbestos

By Trains Staff | April 25, 2022

| Last updated on March 18, 2024


Charges stem from contract to restore passenger car for use at Steamtown

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Logo of Wasatch Railroad ContractorsCHEYENNE, Wyo. — The owner of a Wyoming railcar refurbishment company has been convicted of wire fraud and for intentionally exposing his employees to asbestos.

The Cowboy State Daily reports John Eldon Rimmasch, 47, faces a maximum penalty of 95 years in prison and $1.2 million in fines, while his company, Wasatch Railroad Contractors, faces $2 million in fines. The company has filed for bankruptcy.

Rimmasch and the company were convicted on April 13 of five counts of wire fraud and one count of knowing endangerment.

The latter charge stems from a contract with the National Park Service to restore a 1923 Central of New Jersey passenger car for use at Steamtown National Historic Site. When the Park Service sought bids for the restoration in 2016, it informed contractors that the car contained asbestos and that a contract would require safety measures to protect workers. An indictment handed down last November accuses Rimmasch and Wasatch of billing the Park Service almost $39,000 for asbestos abatement even though the work was not done, and that Rimmasch did not intend to comply with the safety measures.

The project was never completed and Rimmasch was accused of failing to pay employees who worked on the project.

2 thoughts on “Railcar restoration firm and owner convicted of fraud, exposing workers to asbestos

  1. I hope that everyone in management involved in this fraud gets their due. that includes the company’s attorneys that had to know what was about to happen when approving contracts. That may nullify any attorney – client privilege?

    Unfortunately, the fraud charges gave time for the company and many management persons to hide assets from bankruptcy filings.

    Did this company lease their facilities from say UP RR? Owner of building may now have to do asbestos abatement?

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