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Rahm sentenced to prison

Former CVB director to serve more than three years for theft

MARSHALL — The former director of the Marshall Convention and Visitors Bureau will serve more than three years in prison for multiple counts of theft by swindle, a Lyon County District Court judge ruled Monday.

Darin Rahm, 49, of Marshall, was sentenced for a total of seven counts of theft. Each count carried a separate sentence, ranging from 366 days in prison to 68 months in prison. However, a judge ruled that Rahm will serve all the sentences concurrently. He will serve at least two thirds of the 68-month sentence in prison, with up to one third of the sentence on supervised release.

This means Rahm will serve around 45 months in prison. His sentence also includes paying more than $265,000 in restitution and a $1,000 fine. The judge granted a request from prosecutors that Rahm’s frozen assets be turned over to court administration and used to pay restitution.

Rahm pleaded guilty to the counts of theft in May. He admitted to using “phantom” vendor accounts to direct more than $256,000 to himself between 2015 and 2018 when he was terminated from the CVB. In court, Rahm had described setting up online accounts and using them to create invoices directed back to his own account.

More than 30 people were present in the courtroom for Monday’s sentencing hearing.

Written victim impact statements from Marshall city officials, the Marshall Economic Development Authority, the CVB, and businesses including Marshall hotel and restaurant owners were all read in court. Local businesspeople said the money Rahm stole, which was taken from local lodging and prepared food and beverage taxes, should have been used to promote tourism and business in the community, and to organize events at the Red Baron Arena and Expo.

“He lied to us. He stole from all of us. He broke our trust,” said a statement from a group of Marshall restaurant owners.

Steve Klinkhammer, of the AmericInn in Marshall, said the lack of promotion hurt local businesses. During Rahm’s time as CVB director, local hotel rooms were sitting empty on weekends when they should have been full, he said.

“Our employees were impacted tremendously,” Klinkhammer said. “These crimes hurt people from every economic background.”

In a written statement, Marshall Mayor Bob Byrnes estimated that while Rahm was CVB director, he stole almost half of the $165,000 a year the organization received from local taxes. Local businesses and citizens were all victims.

Byrnes said Rahm’s actions “leave a dark stain on our city.”

Kelly Loft, of the Marshall CVB Board, said the organization now has to work to overcome the stigma and loss of trust caused by Rahm’s criminal actions. Loft was one of several people who asked the judge to give Rahm the maximum sentence.

In a written statement, Cal Brink, former executive director of the Marshall Area Chamber of Commerce, said Rahm’s actions were “all part of a laid-out plan,” and asked that he receive the maximum sentence.

“There was nothing accidental about his actions,” Brink’s statement said.

The court also heard arguments from both Assistant Lyon County Attorney Abby Wikelius and attorney Joel Solie about sentencing. Wikelius said the prosecution was seeking a sentence on the “high end” of what guidelines allowed, including a 68-month prison sentence, fines and more than $265,000 in restitution.

But Solie said there were “substantial and compelling reasons” to stay the execution of Rahm’s sentence. Completing probation instead of going to prison would allow Rahm to get treatment for gambling addiction, Solie said.

“I have so much guilt for what I did,” Rahm told the judge Monday. He said he looked forward to getting the help he needed to cope with a gambling addiction.

However, after a short court recess, Judge Tricia Zimmer handed down sentences including 68 months in prison for the theft charges.

“I do believe that you have guilt in some way,” Zimmer told Rahm. But in the court’s opinion, she said, Rahm “lacked a genuine remorse” for his victims.

After the hearing Monday, current Marshall CVB Director Lauren Deutz said the organization would be working to regain the public’s trust.

“After a difficult year, the CVB is pleased that we can start putting these crimes behind us,” Deutz said in a statement. “Darin spent years deceiving our board and the entire community of Marshall. We are content with the sentence that Darin has received and are thankful to the Lyon County justice system for the time, energy and resources put into determining a suitable punishment.

“As a board, we remain steadfast in our commitment to the tourism industry of Marshall,” she said. “We have and continue to implement new policies and procedures to endure that our financial system is secure. We appreciate the support we have received and will continue working hard to regain lost trust.”

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