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Lawyer Pleads Guilty to Charges Related to Scrap Metal Export Scheme

Richard Luthmann, a Staten Island, New York, lawyer, pleaded guilty to wire fraud conspiracy and extortion on March 18, the Justice Department said in a news release. "Beginning in summer 2015, Luthmann, co-defendant George Padula and the victim participated in…

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a scheme in which they contracted with overseas companies to sell and ship them containers of valuable scrap metal, but instead packed the containers with cheap filler material, such as concrete blocks," the DOJ said. "As part of the scheme, Luthmann registered shell companies, including Omni Metal Corporation, with the New York Department of State and recruited a client of his law practice to be the nominal president of Omni." In late 2016, the victim was threatened with a gun in the presence of Padula not to contact police.