(The following story by Eric Torbenson appeared on The Dallas Morning News website on April 14, 2010.)
DALLAS, Texas — A federal jury in Fort Worth has convicted Robert Steele, 64, of Gardner, Kan., on seven counts of wire fraud and conspiracy to commit wire fraud against Fort Worth-based Burlington Northern Santa Fe Corp.
The verdict came after a two-day trial, according to U.S. Attorney James Jacks. Steele faces up to 20 years in prison and a fine of up to $250,000 for each of the seven counts. His co-conspirator in the scheme to defraud BNSF, Mathew Wyrick, 35, pleaded guilty to charges in March and testified for the government against Steele.
The scheme involved false billings for services and hardware sent to the railroad. The two men set up companies that billed BNSF for more than $2 million, many of which were false.
Steele will be sentenced July 23; Wyrick will be sentenced June 18.
BNSF is owned by Warren Buffett’s Berkshire Hathaway Inc., based in Omaha, Neb.