FACT SHEET
United States v. Atlantic States Cast Iron Pipe Company, et al.
No. 3:03-CR-00852 (D. N. J.)
Summary of Trial Verdicts. On April 26, 2006, a jury found Atlantic States Cast Iron
Pipe Company ("Atlantic States"), a division of McWane Industries, and the plant
manager, maintenance supervisor, finishing supervisor, and former human resource
manager guilty of environmental crimes. A fifth individual defendant was acquitted.
The trial began in September 2005 and is the longest federal trial (defined in length, from
jury selection to verdict) in environmental crimes history.
Background Leading to Convictions. The government's investigation began following
public reports in the media and discussions with federal and state regulatory agencies.
Media Reports: New York Times: Workplace Safety: An investigation by the NY Times
(Dec 21 -23. 2003) and PBS' Frontline: A dangerous business (Jan 9 2003)
McWane is one of the world's largest makers of cast-iron water and sewer pipes and has
subsidiaries located throughout the United States and Canada. Atlantic States, located in
Phillipsburg, NJ, manufactures iron pipes, which involves melting scrap metal in a cupola
(a multi-story furnace) that reaches temperatures approaching 3,000 degrees Fahrenheit.
EPA's investigation revealed a corporate philosophy and management practice, including
threats and intimidation of workers, which led to an extraordinary history of
environmental crimes, workplace injuries and fatalities, and ultimately obstruction of
justice. The company and various officials routinely violated Clean Water Act permits
by discharging petroleum-contaminated water and paint into storm drains that led to the
Delaware River; repeatedly violated Clean Air Act permits by, among other things,
burning tires and excessive amounts of hazardous waste paint in the cupola;
systematically altered accident scenes; and routinely lied to federal, state, and local
officials who were investigating environmental and worker safety violations.
The defendants were charged in a 35-count indictment (one count was later dismissed)
with, among other things,
Conspiring to illegally discharge pollutants into the Delaware River; knowingly
violating Clean Air Act permit requirements; defrauding the United States by
obstructing OSHA's and EPA's investigations; lying and falsifying documents
required by OSHA and EPA for worker and environmental protection; and
obstructing justice, all for their own enrichment
Pumping 50-100 gallons of petroleum-contaminated water, at least once a week,
into a pit leading to the Delaware River, causing an 8.5 mile long oily sheen -
then lying to authorities about the spill
Discharging 150 gallons of asphalt-based paint into the Delaware River then
lying to authorities about the discharge
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Polluting the air with carbon dioxide emissions resulting from burning waste paint
and used tires, in violation of Clean Air Act permits
Deceiving environmental officials by fraudulently lowering emissions and
pollution concentrations when performing required stack tests (by melting raw
materials such as plate, structural steel and "pig iron" instead of the scrap metal
usually used when the tests were being performed).
To view all the charges against the defendants, you may access the indictment United
States of America v. Atlantic States Cast Iron Pipe Company, et al.
Verdicts. Atlantic States was named in all counts of the indictment and was convicted
on five counts of making materially false statements to state and federal environmental
agencies and the federal Occupational Safety & Health Administration (OSHA); four
counts of obstructing OSHA investigations; 22 counts of violating the federal Clean
Water Act and one count of violating the Clean Air Act. One defendant, Daniel
Yadzinski, was acquitted on all counts. The remaining defendants were each acquitted on
at least one charge, and were each convicted of criminal conspiracy. They were also
convicted of environmental and OSHA-related crimes as follows:
John Prisque, of Bethlehem, Pennsylvania (plant manager):
o Guilty of three counts of obstruction of an OSHA investigation
o Guilty on one count of violating the Clean Water Act
o Guilty on one count of violating the Clean Air Act
Scott Faubert, of Easton, Pennsylvania (former human resource manager):
o Guilty on one count of making false statements to OSHA
o Guilty on two counts of obstructing an OSHA investigation
Jeffrey Maury, of Tamaqua, Pennsylvania (maintenance supervisor):
o Guilty on one count of making false statements to the New Jersey
Department of Law and Public Safety and the FBI
o Guilty of obstruction of an OSHA investigation
o Guilty of seven counts of violating the Clean Water Act
Craig Davidson, of Nazareth, Pennsylvania (finishing supervisor):
o Guilty on one count of making false statements to the NJ Department of
Law and Public Safety and a NJ Department of Environmental Protection
emergency responder
o Guilty on 16 counts of violating the Clean Water Act
Sentences. The Company and individuals were sentenced as follows:
Atlantic States:
o $8 million fine and serve 48 months "monitored" probation that requires
the company to submit biannual reports to the court. This monitor will be
paid by Atlantic States. They were also ordered to pay a Special
Assessment of $12,000.00
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John Prisque (plant manager):
o 70 months in prison and must pay a Special Assessment of $525.00
Scott Faubert (former human resource manager):
o 41 months in prison and must pay a Special Assessment of $400.00
Jeffrey Maury (maintenance supervisor):
o 30 months in prison
Craig Davidson (finishing supervisor):
o 6 months in prison and must pay a Special Assessment of $575.00.
Prior Environmental Crimes and Violations. Prior to the April 26, 2006 conviction of
Atlantic States Cast Iron Pipe Company and the four individual defendants, three other
Me Wane divisions, along with individual defendants, have been convicted following
trials, or pled guilty, for committing environmental crimes. The investigation of a fifth
Me Wane division, McWane Cast Iron Pipe Company, is ongoing.
Pacific States Cast Iron Pipe Company - Provo, UT (February 2006)
McWane Union Foundry - Anniston, AL (September 2005)
Tyler Pipe Company - Tyler, TX (March 2005)
Pacific States Cast Iron Pipe Company - Provo, UT
In February 2006, cast-iron pipe manufacturer McWane, Inc. (McWane) and former vice
president and general manager, Charles Matlock, pleaded guilty to environmental crimes
in connection with the operation of Pacific States Cast Iron Pipe Company (Pacific
States). McWane pleaded guilty to two counts of submitting a document to the State of
Utah containing falsified emission test results. Matlock pleaded guilty to one count of
rendering inaccurate a testing method required by the Clean Air Act (CAA). McWane
was ordered to pay a $3 million finethe largest criminal environmental fine in the state
of Utahand to serve a three-year period of probation. Charles Matlock was sentenced
to!2 months and one day in prison and a $20,000 fine. Read the case summary on
Pacific States Pipe from 2006
McWane Union Foundry - Anniston, AL
In September 2005, the Union Foundry Company, of Birmingham, Ala., was sentenced to
pay a $3.5 million criminal fine, perform a $750,000 environmental community service
project and serve five years probation following a guilty plea to charges of violating both
the Resource Conservation and Recovery Act and an Occupational Safety and Health
Administration regulation. Union Foundry allowed a maintenance employee to work in
the area of a conveyor belt while it was operating without a safety guard. The employee
was caught in the unguarded pulley of the conveyor belt and was crushed to death. The
company also treated hazardous waste generated by the foundry without a permit from
EPA or the State of Alabama. The hazardous waste was dust from air emissions of the
iron furnace, which contained lead and cadmium.
Read the 09/22/2005: Alabama Foundry Sentenced to Pay $4.25 Million for RCRA and
OSHA Violations Press Release
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Tyler Pipe Company - Tyler, TX
In March 2005, Tyler Pipe Company, one of the largest manufacturers of iron pipes and
castings in the U.S., pled guilty to two felony counts in the first criminal prosecution for
violations of the new source review/prevention of significant deterioration provisions of
the Clean Air Act. The company paid a $4.5 million criminal fine and will undertake an
estimated $11 million in upgrades to the facility to reduce future pollution. The
prosecution arose from Tyler Pipe's illegal construction and operation of a scrap metal
furnace at its facility near Tyler, Texas. The furnaces melt scrap metal to produce molten
iron, which generates substantial air pollution, including significant emissions of
particulate matter, carbon monoxide and lead. Tyler Pipe razed its old plant furnace and
replaced it with a new one. Under the CAA's prevention of significant deterioration
provisions, Tyler Pipe was required to apply to the Texas Commission on Environmental
Quality for permission to construct and operate the new furnace using the best available
control technology. Instead, Tyler Pipe concealed the construction of the new furnace
from the state commission and connected it to the existing pollution control device, a
water scrubber designed and built in the 1960s.
Read the 03/22/2005: McWane Pipe Manufacturing Facility in Texas Will Plead Guilty
to Air Violations, Pay $4.5 Million Press Release
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