United States Attorney David Capp Northern District of Indiana 204 South M ain Street, Room M 01 South Bend, IN 46601

PRESS RELEASE

The United States Attorney’s Office announced that a Grand Jury sitting in South Bend, Indiana, returned a 24-count indictment charging John A. Frederick, Phillip A. Montorsi, Victor A. Montorsi, William J. Montorsi, Ryan P. Mrozinski, James B. Newland, John R. Patrick, and Joseph R. Phelps with possessing stolen goods shipped in interstate commerce, disabling railroad equipment, breaking seals on railroad cars containing interstate freight shipments, entering railroad cars containing interstate freight shipments, possessing more than 10,000 contraband cigarettes that bore no evidence of payment of state cigarette taxes, and obstructing a federal investigation, in violation of 18 U.S.C. §§ 2, 371, 659, 1512(b)(3), 1992(a)(1), 1992(b)(1), 2117, and 2342.

Particularly, the indictment charges that, from 2006 through 2008, these individuals conspired to steal items from Norfolk Southern and CSX trains in the Northern District of Indiana and to either keep the items or sell them for profit. James Newland, Victor Montorsi, and John Frederick worked for Norfolk Southern. Various of the defendants would meet late at night, board slowed or stopped trains, open train cars with bold cutters, and remove the freight.

The indictment identifies 18 different train thefts. Items stolen from trains include Clan MacGregor blended scotch whiskey, Crown Royal whiskey, Smirnoff vodka, Nike tennis shoes, Wilson golf balls, Ryobi power tools, Rigid power tools, tackle boxes, Tide detergent boxes, Huggies diapers, Craftsman lawnmowers, numerous cases of Marlboro cigarettes, IBM and Envision computer monitors, and televisions manufactured by Sharp, Sony, Sanyo, and Samsung. The indictment alleges 17 different instances when the defendants sold these items.

These charges were filed as a result of an investigation by the Federal Bureau of Investigation. Also participating in the investigation were the Laporte Police Department, Laporte County Sheriff’s Department, Indiana State Excise Police, Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, and Gary Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Jesse M. Barrett.

The specific sentences to be imposed upon conviction will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The United States Attorney's Office emphasizes that an indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.