JACKSONVILLE, Fla. – A federal grand jury has charged a 58-year-old Jacksonville man with two separate conspiracies to commit mail fraud and wire fraud, and 10 counts of wire fraud.
Andrew A. Rooks was arrested and made his initial appearance in federal court Wednesday. He was released on bond and an arraignment has been scheduled for Monday, April 27, 2015.
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U.S. Attorney A. Lee Bentley III said Andrew A. Rooks was arrested Wednesday and was released on bond. If convicted, Rook faces a maximum penalty of 20 years in federal prison on each count. The government is also seeking a money judgment for $2.1 million, which represents the proceeds of the fraud.
Rooks worked from 2001 to July 2011 in the Jacksonville office Sea Star Line LLC, which transports goods by vessel in interstate and foreign commerce and has operations at the port of Jacksonville. Rooks last served as the assistant vice president of operations.
The indictment alleges that starting November 2005 or before, Rooks authorized the payment of phony invoices for container and equipment decals submitted on behalf of a co-conspirator, Keith Beavers.
Beginning around the same time, Rooks is accused of carrying on a second conspiracy, allegedly authorizing the payment of phony invoices to two companies controlled by Russell Cody. The invoices were for inspection and transportation services of Sea Star's containers and equipment. They were false because those services were never provided by Tiburon Transportation Services or Lancer Logistics, which were the front companies controlled by Cody.
Instead, the indictment alleges that Beavers and Cody made kickback payments to Rooks, and to a company controlled by Rooks. The payments were approximately 40 to 60 percent of the amount paid by Sea Star on the phony invoices.
The indictment also alleges that after Rooks was terminated by Sea Star, he got a job with another Jacksonville company, Trailer Bridge Inc., and continued the conspiracies. Trailer Bridge paid $107,000 as a result of phony invoices.
In separate cases, Beavers and Cody previously pleaded guilty for their roles in the conspiracies, and are currently awaiting sentencing.