News and Press Releases

Former Pinnacle Airlines Employee Sentenced
For $1.1 Million Dollar Fraud Scheme

FOR IMMEDIATE RELEASE
June 29, 2012

Memphis, TN - Frank Richard Raasch, age 38, of San Diego California, formerly of Memphis,
was sentenced by United States District Judge Samuel Hardy Mays to 41 months imprisonment
for wire fraud in violation of Title 18, U.S.C., Section 1343, announced United States Attorney
Edward L. Stanton, III; Special Agent in Charge of the Federal Bureau of Investigation’s
Memphis Division, Aaron T. Ford; and Keith Morris, Inspector in Charge of the Atlanta Division
of the United States Postal Inspection Service.

Raasch, the former Director of Information Technology, Major Projects and Transition at
Pinnacle Airlines and its predecessor Mesaba Airlines, pleaded guilty in March to one count of
wire fraud arising from a scheme to defraud Pinnacle and Mesaba of approximately $1.1 million
between 2007 and November 2011. According to the criminal information, 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. Raasch was also
ordered to pay restitution to Pinnacle and Chubb Insurance Group in the total amount of
$1,100,384.

“The United States Attorney’s Office is committed to prosecuting 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, 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 the Federal Bureau of Investigation and United States Postal
Inspection Service. The case was prosecuted by Carroll L. Andre III, on behalf of the
government.

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