Van Zandt electrical contractor sentenced for wire fraud

TYLER – A Canton man has been sentenced to federal prison for his role in a wire fraud conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr. James Derr, 55, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 46 months in federal prison by U.S. District Judge Jeremy Kernodle on March 18, 2025. Derr was also ordered to pay $2,615,585.93 in restitution.According to information presented in court, Derr, an electrical contractor with J&D Electric, was involved in a conspiracy with Rebekah Mitchell and Brittany Burton to divert equipment for their own financial gain.

Between March of 2017 and May of 2021, Mitchell used her position at Schneider Electric in Athens to steal Schneider Electric circuit breakers from their inventory and direct the shipment of the stolen circuit breakers to locations where Derr could take possession of them. Mitchell paid Burton to use her position at J&K Storage in Flint to receive shipments of stolen Schneider Electric circuit breakers at J&K Storage. Mitchell created fraudulent documentation in the purchase order and/or bill of lading logistics systems depicting fictional customers that resulted in the shipment of Schneider Electric circuit breakers to locations that she and Derr agreed upon, which included, on approximately 11 occasions in 2017 and 2018, J&K Storage. Derr took possession of the Schneider Electric products at various locations and sold them to various buyers. Derr shared the proceeds of these sales with Mitchell in consideration for her role in the conspiracy. As a result, Derr, Mitchell and Burton caused Schneider Electric to suffer a financial loss of approximately $2,615,585.93.

On February 18, 2025, Mitchell was sentenced to 34 months in federal prison and was also ordered to pay $2.6 million in restitution to Schneider Electric. Burton pleaded guilty to her role in the conspiracy and is currently awaiting sentencing.