AUSA VICKIE E. LEDUC at 410-209-4885

October 12, 2006

FLORIDA MAN PLEADS GUILTY TO MAKING PHONE THREATS

BALTIMORE, Maryland - James Riechert, age 42, of Cape Coral, Florida, pleaded guilty today to interstate communication of a threat, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

According to the statement of facts provided to the court as part of the plea agreement, in August 2004, FBI agents learned of a threat against an individual, who became a confidential source (CS)of the FBI, for the failure to make a timely payment on an extortionate loan. The CS advised that a co-conspirator of Reichert had made a $15,000 loan to the CS with a monthly interest rate of 15%, which is approximately 180% per annum. The CS made monthly payments of $2,250 for six months. On August 12, 2004, Reichert, in a monitored call to the CS about CS’s late August payment, threatened that failure to pay the debt would result in reprisal. Reichert identified the co-conspirator as his employee, calling him his "negotiator." On August 16, 2004, the co-conspirator told the CS in a monitored telephone conversation that the payments were "just interest;" thus, no credit had been made against the principal. When the CS told the co-conspirator that he was still putting together the payment for August, the co-conspirator threatened to shoot the CS.

Reichert faces a maximum sentence of 20 years in prison, followed by three years of supervised release and a $250,000 fine. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 8, 2006 at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the investigative work performed by the Federal Bureau of Investigation. Mr. Rosenstein also thanked Assistant U.S. Attorney Steve Levin, who is prosecuting the case.