Transammonia Petroleum, a Houston-based unit of Transammonia Inc., New York City, is out a total of $4.4 million due to the theft of stolen petroleum products from Petroleos Mexicanos (PEMEX). Donald Schroeder, the president of Trammo Petroleum, was charged in the Southern District of Texas in May and pleaded guilty to conspiring to receive approximately $2 million in stolen Mexican petroleum products. Schroeder, who is out on bond, faces a maximum punishment of five years imprisonment and a fine of $250,000 at his sentencing in December 2009.
“Immediately on learning of the government investigation, Trammo Petroleum offered its full cooperation and assistance to the government,” according to a statement from the company. “Mr. Donald Schroeder’s behavior was unacceptable and a violation of company policy. He has been terminated. We have been informed by the government that no other employee had any knowledge that there was any problem with the source of this product.”
“The government has agreed not to prosecute Trammo Petroleum,” according to the statement. “We have taken steps to prevent any recurrence of this type of behavior. We also agreed to provide restitution of $2.4 million to the Mexican company PEMEX and a fine of $2 million to the US government. We will continue to cooperate with the government in any way we can.”
The Houston U.S. Attorney’s office told Green Markets that Schroeder acknowledged that in February 2009 he and others were responsible for the loading of a barge containing stolen condensate valued at $2 million in Brownsvillle, Texas, and arranged for the shipment to be transported for resale to a company near the Houston area. Trammo profited approximately $150,000 from this transaction.
In June 2007, U.S. Immigration and Customs Enforcement and a Mexican customs administrator provided information regarding the smuggling of stolen PEMEX products into the U.S. Under Mexican law, only PEMEX and its authorized agents have the legal authority to sell and distribute its products abroad. During the investigation, ICE agents from San Antonio and Houston executed 10 federal search warrants on bank accounts in Texas. The investigation continues, with additional individuals and companies still under investigation.