Statement of Reasons Pursuant to 18 U.S.C. §3553(c)(2) I. Introduction Defendant Richard Luthmann (“Luthmann” or “Defendant”) abused his status as a lawyer and conspired to commit fraud and extortion. He, together with others, devised a scheme to defraud export companies purchasing scrap metal for shipment to foreign customers, and then organized a scheme to extort a coconspirator. While on pretrial release following his arrest, Luthmann engaged in witness tampering and provided evidence to third parties in violation of a court order. Following a forensic mental health evaluation, Defendant pled guilty to wire fraud conspiracy, under 18 U.S.C. §§1348, 1349, and extortionate collection of credit conspiracy, under 18 U.S.C. §894(a). Although he is remorseful for his conduct and in alcohol and drug abuse recovery, his crimes were absurd, bizarre, and ruthless. The case illustrates the danger in ignoring mental health problems of practicing lawyers. Defendant is sentenced to 48 months’ incarceration, to be followed by three years’ supervised release. II. Offense Luthmann began operating his own law firm in 2010. Presentence Investigation Report (“PSR”) 109. Through his law practice, Defendant met the clients who became his coconspirators and codefendants. For several years, Luthmann represented an individual in litigation relating to the scrap metal business (“Coconspirator 1″). PSR 10. Scrap metal from the United States is sent abroad in large shipping containers. Id. Foreign customers pay a price per unit of weight for scrap metal, separated and charged for by value. Id. In 2015, following Defendant’s introduction of Coconspirator 1 to another client (“Coconspirator 2″), the three individuals devised a scheme to defraud companies seeking to buy scrap metal. PSR 12. Coconspirator 1 identified potential victims; Luthmann registered two companies to operate the fraud, facilitated the opening of bank accounts for the fraud, and corresponded with “customers”; Luthmann brought Coconspirator 2 into the scheme because Luthmann believed he had organized crime connections and could help settle disputes. PSR
12-13. Using the companies Defendant created, which were named to closely match legitimate scrap and recycling businesses, the conspirators defrauded eight companies. PSR 34; Gov’t Sent. Mem. 2, ECF No. 207. In early October 2015, one of the fraudulent companies contracted to sell $31,500 worth of scrap metal. PSR 15. The purchaser wired the funds to an Interest on Lawyer Account (“IOLA”) belonging to Luthmann. Id. Those funds were then wired to an account controlled by Coconspirator 1. PSR 16. When no scrap metal delivery was made to the purchaser, it threatened criminal charges. PSR
