Man sentenced for $2M wire conspiracy fraud

CANTON – A Van Zandt County contractor was sentenced on Tuesday for his role in a wire fraud conspiracy that cost an electric company more than $2 million.

According to the U.S. Attorney Office’s of the Eastern District Court of Texas, James Derr, 55, was involved in a group conspiracy with Rebekah Mitchell and Brittany Burton that diverted electrical equipment for financial gain. Our news partner, KETK, reports that for five years, Derr, Mitchell, and Burton reportedly worked together to steal circuit breakers and resell them to various buyers. Derr worked as an electrical contractor with J&D Electric, and Mitchell worked for Schneider Electric in Athens.

The attorney’s office said Mitchell used her position at the company to steal inventory and direct the stolen equipment to a secure location. Derr took possession of the stolen equipment while Mitchell paid Burton to use her position at J&K Storage in Flint to receive shipments of stolen circuit breakers. Derr then distributed the proceeds of the stolen equipment with Mitchell.

As a result, Schneider Electric suffered a financial loss of approximately $2.6 million.

Derr was sentenced to 46 months for his role in the conspiracy on Tuesday. Mitchell was sentenced in February to 34 months in federal prison and was also required to pay $2.6 million in restitution to Schneider Electric.

Burton pleaded guilty to her role in the conspiracy and is currently awaiting sentencing according to Acting U.S. Attorney Abe McGlothin, Jr.