News and Press Releases

Former Pinnacle Airlines Employee Pleads Guilty
In $1.1 Million Dollar Fraud Scheme

March 27, 2012

Memphis, Tenn.- Frank Richard Raasch, age 38, formerly of Lakeland, TN, 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 3:00pm. 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.

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