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Van Zandt County, Texas News

Canton Man Sentenced to Federal Prison for Multi-Million Dollar Wire Fraud Scheme

James Derr, 55, of Canton, has been sentenced to 46 months in federal prison for his role in a wire fraud conspiracy that defrauded Schneider Electric of over $2.6 million.

Acting U.S. Attorney Abe McGlothin, Jr., announced the sentencing, which was handed down by U.S. District Judge Jeremy Kernodle on March 18, 2025. Derr was also ordered to pay $2,615,585.93 in restitution.

Derr, an electrical contractor with J&D Electric, conspired with Rebekah Mitchell and Brittany Burton to divert Schneider Electric equipment for personal financial gain. Mitchell, who worked at Schneider Electric in Athens, stole circuit breakers from the company's inventory and directed their shipment to locations where Derr could take possession. Burton, employed at J&K Storage in Flint, received shipments of the stolen equipment.

Mitchell created fraudulent documentation to facilitate the shipments, including approximately 11 shipments to J&K Storage in 2017 and 2018. Derr then sold the stolen products and shared the proceeds with Mitchell.

Rebekah Mitchell was previously sentenced to 34 months in federal prison and ordered to pay $2.6 million in restitution. Brittany Burton has pleaded guilty and is awaiting sentencing.

The FBI Tyler Field Office investigated the case, and Assistant U.S. Attorney James Noble prosecuted it.

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