Rankin sentenced to one year in prison over lavish Derby, golf trips
May 16—Former utility cooperative CEO Drew Rankin was sentenced to 12 months in prison and three years of probation Tuesday, the first of three former utility officials to be sentenced this week after they were convicted in December 2021 of theft in connection with lavish trips to the Kentucky Derby and a West Virginia golf resort in 2015.
Judge Jeffrey A. Meyer also sentenced Rankin, 62, to three years of probation for his leadership role in organizing the trips hosted by the Connecticut Municipal Electric Energy Cooperative to the horse race and The Greenbrier golf resort.
CMEEC hosted trips from 2013 to 2016, and made deposits for a 2017 trip to the Kentucky Derby that was canceled following public outcry over the practice.
When imposing the sentence, Meyer said he took into consideration many factors, including Rankin's well respected reputation in his career, his family support and the likelihood that he would not be a repeat offender in imposing a lighter sentence than the calculation made for his offense.
Meyer also weighed what he called "horizontal equity" to the case, noting that dozens of participants in the lavish trips were never indicted criminally and were never asked to reimburse CMEEC for the costs of their participation.
Rankin was ordered to voluntarily submit to imprisonment on July 11, and has 14 days from Tuesday to appeal the case to the Second District Court of Appeals in New York. His attorney, Craig A. Raabe, said he plans to appeal, telling he court Tuesday there are significant issues to raise in an appeal.
Rankin declined to give a statement during the sentencing and declined to comment afterward.
Meyer reduced the recommended sentence of 41 to 51 months but said he could not agree with Rankin's attorney's recommendation for no prison time, given the seriousness of the crime and the need to protect public trust in government agencies.
During a three-hour sentencing hearing Tuesday Meyer found that Rankin violated a position of public trust, lied on the witness stand during the 2021 trial and should be held liable personally for the entire $502,242.18 cost of three 2015 luxurious trips and for deposits made that year for the 2016 Kentucky Derby trip.
Rankin's attorneys argued for a sentence of no prison time and little to no restitution payments. They pledged in documents filed in U.S. District Court in New Haven to appeal the conviction to the U.S. Second District Court of Appeals in New York.
Raabe objected to all provisions used in the sentencing guideline.
Prior to the sentencing, Meyer announced he would consider a possible enhancement to Rankin's sentence if he found Rankin had obstructed justice with alleged falsehoods during his trial testimony.
Meyer specifically cited Rankin's claim that during a four-day August 2015 so-called "scouting trip" to The Greenbrier, Rankin, former Norwich Public Utilities General Manager John Bilda, former CMEEC board and Norwich utility commission chairman James Sullivan and former Groton Utilities commissioner Edward DeMuzzio, spent 35-40 hours discussing CMEEC business. The trip itinerary, though, included no business meetings, but listed golf outings, tours and dinners.
Raabe said Rankin's testimony, deemed not credible by Judge Meyer, was a matter of opinion. He added that Rankin did not attempt to hide the costs or purpose of the August 2015 trip to The Greenbrier, maintaining that the trip had legitimate business.
But during Tuesday's sentencing hearing, Meyer said he recalled the specific trial testimony and found it not credible at the time.
"I remember the testimony," Meyer said, looking directly at Rankin in the courtroom. "I could tell right then, Mr. Rankin, you were lying."
Although Rankin was convicted on only one theft count for the 2015 trips, prosecutors sought a prison sentence ranging from 41 to 51 months and for restitution for the collective costs of all trips from 2013 to 2016 totaling $1.1 million.
Meyer rejected the $1.1 million loss calculation, but said Rankin's conduct as CEO and organizer of all the trips for all four years could be considered as background for imposing the sentence.
During the sentencing, Meyer said Rankin's personal financial gain for the trips was just a small fraction of the loss incurred by CMEEC for the four 2015 events, but said as organizer of the trips, he bore responsibility.
Meyer imposed no personal fine with the sentence. Restitution requirements will be set at a future date.
The jury convicted Rankin, Bilda and Sullivan of one count each of theft from a program receiving federal funds for the 2015 CMEEC trips. The jury acquitted the three and two other defendants, DeMuzzio and former CMEEC CFO Edward Pryor on conspiracy charges and theft charges stemming from the 2014 Kentucky Derby trip. U.S. prosecutors withdrew charges related to the 2016 trips during the trial.
Sullivan is scheduled to be sentenced at 10 a.m. Wednesday and Bilda at 10 a.m. Thursday.
During the first 90 minutes of Tuesday's sentencing hearing, Judge Meyer overruled numerous objections Rankin had filed against prosecutors' presentencing reports, including Rankin's objections to repeated statements by prosecutors that CMEEC revenue used for the Kentucky Derby and Greenbrier trips was meant to be turned over to member municipal utilities for electric rate stabilization.
In overruling an objection to the statement that Rankin diverted funds to plan elaborate trips for personal benefit, Meyer said the evidence showed, "Mr. Rankin did just that."
Meyer did agree with Rankin's objection to applying the entire collective cost of four years of lavish retreats, totaling $1.1 million as the basis for calculating financial loss to the member utilities.
Meyer ruled that the $502,242 cost of the 2015 Kentucky Derby and Greenbrier trips and deposits made for the 2016 Kentucky Derby trip be considered the actual loss total. Meyer rejected Rankin's objection to the government's label of "extravagant" on the costs of the trips.
"The trips expenses in my view were extravagant," Meyer said.
Meyer also rejected Rankin's claim that CMEEC did not object to the trips before the criminal indictment, as no participants were required to reimburse their costs and four trip participants remain on the CMEEC board.
The trips' guest lists and scale of luxury grew each year, including private chartered jets, dinners costing tens of thousands of dollars, gifts and box seats to the Kentucky Derby, totaling $1.1 million.
But Rankin and his attorneys, led by Raabe, argued the trips were legal, strategic retreats for the CMEEC board designed to foster bonding, trust and cooperation among the disparate board members.
Rankin and Sullivan face a second federal indictment charging each with one count of conspiracy and three counts of theft from a program receiving federal funds in allegedly using CMEEC funds to pay for nearly $100,000 of Sullivan's personal expenses and travel costs from 2013 through 2015. That case is on hold, pending resolution of the current proceedings.
