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Environmental Crimes Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
Case Bulletin May 2012
This bulletin summarizes publicized investigative activity and adjudicated cases conducted by
OCEFT Criminal Investigation Division special agents, forensic specialists, and legal support
staff.
Defendants in this edition:
• Jon E. Goodrich, Mace Personal Defense, Inc. — Region I
• John R. Wiehl, Franklin Non-Ferrous Foundry, Inc. — Region I
• John C. Scheerer — Region I
• John Tetreault — Region I
• Cheng Yan Huang, Jai Ping Chen — Region 2
• Martin S. Kimber — Region 2
• Joe L. Parrish, Gregory A. Scott — Region 3
• Nature's Broom of America, Inc. — Region 4
• Peter Grimes — Region 4
• Prastana Taohim — Region 4
• Target Ship Management Pte., Ltd., Payongyut Vongvichinakul, Pakpoom Hanprap — Region 4
• Douglas Mertz, Wasim Ibrahim Bony — Region 5
• Sheila R. Kendrick — Region 5
• Cedyco Corporation — Region 6
• Philsynergy Maritime, Inc, Wildredo Sombra — Region 6
• Anthony Compton, William M. Threatt — Region 7
• Alice H. Gregory — Region 7
• Reckitt Benckiser, Inc — Region 7
• Hamilton Properties Boston Building, LLC — Region 8
• Patrick Dooley — Region 10
• David Dober, Sr., Robert H. Block Jr. - Region 10
EPA Bulletin May 2012 1
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DEFENDANT SUMMARY:
EPA REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 1
Jon E. Goodrich, Mace Personal
Defense, Inc.
RCRA/Illegal hazardous waste stor-
age
Region 1
John R. Wiehl, Franklin Non-
Ferrous Foundry, Inc.
RCRA/Illegal hazardous waste stor-
age
Region 1
John C. Scheerer
Falsifying lead abatement reports
Region 1
John Tetreault
SDWA/Falsifying water treatment
plant reports
Region 2
Cheng Yan Huang, Jai Ping Chen
Illegal distribution and sale of unreg-
istered and misbranded pesticides
Region 2
Martin S. Kimber
RCRA/Illegal use of toxic chemicals
EPA Bulletin May 2012 2
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DEFENDANT SUMMARY:
EPA REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 3
Joe L. Parrish, Gregory A. Scott
CAA/Receiving bribes to not report
asbestos violations
Region 4
Nature's Broom of America, Inc.
CWA/Illegal discharge of pollutant
into U.S. waters
Region 4
Prastana Taohim
APPS/Illegal discharge of plastic
pipe into ocean and obstruction of
justice
Region 4
Target Ship Management, Pte,
Ltd., Payongvut Vongvichinakul,
Pakpoom Hanprap
APPS/Illegal discharge of plastic
pipe into ocean and obstruction of
justice
Region 4
Peter Grimes
CW A/Creating false permit that al-
lowed gas pipeline to be constructed
under a river.
Region 5
Sheila R. Kendrick
FIFRA/Making false statements and
fabricating pesticide documents
Region 5
Douglas Mertz, Wasim Ibrahim
Bony
CAA/Delivering false document to
government agency regarding a haz-
ardous material
EPA Bulletin May 2012 3
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DEFENDANT SUMMARY:
EPA REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 6
Philsynergy Maritime, Inc.
Wilfredo Sombra
APPS/Illegal discharge of oily waste
water and making false statement
Region 6
Cedyco Corporation
CWA/Illegal discharge of oil into
navigable U.S. waters
Region 7
Anthony Crompton, William M.
Threatt
CAA/Illegal removal and disposal of
asbestos-containing materials
Region 7
Alice H. Gregory
CAA/Mail fraud and taking bribes in
processing vehicle emissions
Region 7
Reckitt Benckiser, Inc.
RCRA/illegal disposal of hazardous
waste without a permit
Region 8
Hamilton Properties Boston Build-
ing. LLC
CAA/Illegal asbestos removal
Region 10
Patrick Dooley
CW A/Illegally instructing juvenile
employee to dump hazardous chemi-
cals
Region 10
David Dober. Sr.. Robert H.
Block. Jr.
CWA, Rivers & Harbors Act, Endan-
gered Species Act/creek diversion
which destroyed habitat of threatened
species
EPA Bulletin May 2012 4
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Quick Links:
p. 5 - 12
p. 13
p. 14 - 17
p. 18 - 19
(Back to Quick Links)
Mississippi Manufacturing Company Plead Guilty and Sentenced for CWA Crimes — On May 14,
2012, NATURE'S BROOM OF AMERICA, INC., (NBA) pleaded guilty to a one count information
charging the corporation with negligently discharging a pollutant into Steele Bayou, a water of the United
States, without a permit. The corporation was sentenced to pay a $12,000 criminal fine and complete a one-
year term of probation, during which NBA must comply with an Expedited Removal Plan and a Best Man-
agement Practices Plan. NBA is an industrial manufacturing facility located in Hollandale, Mississippi,
which manufactures an absorbent material derived from wood flour, rice hulls, and mineral oil. During the
manufacturing process, NBA screens out wood flour and rice hulls that are not suitable for use in their final
product. NBA stockpiled the screened materials on property adjacent to the Yazoo National Wildlife Refuge
(YNWR) and later began pushing the materials onto YNWR property and into Steele Bayou, a water of the
United States. YNWR is a 12,941 acre wildlife refuge located in the Mississippi River Delta Region of
Western Mississippi and is an important wintering habitat for migratory birds, especially ducks and geese.
The Steele Bayou is an EPA-listed impaired waterway with Total Maximum Daily Loads for Nitrogen, Phos-
phorus, Siltation, DDT, and Toxaphene. This case was investigated by EPA's Criminal Investigation Divi-
sion, with assistance from the U.S. Fish and Wildlife Service and the Mississippi Department of Environ-
mental Quality, and was prosecuted by the U.S. Attorney's Office for the Northern District of Mississippi.
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The screened materials that were being stockpiled next to the YNWR and was running
into Steele Bayou.
EPA Bulletin May 2012 5
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President of New Hampshire Foundry and His Company Sentenced for Illegally Storing Hazardous
Waste — On May 10, 2012, JOHN R. WIEHL was sentenced to six months of home confinement and two
years of probation. The company he runs, FRANKLIN NON-FERROUS FOUNDRY, INC., was also
sentenced to two years probation in federal district court for the District of New Hampshire for unlawfully
storing hazardous waste. The company manufactures a variety of metal parts for various industrial applica-
tions. A byproduct of the foundry's operation is the production of waste containing hazardous or toxic con-
centrations of lead and cadmium. Under federal law, a generator of hazardous waste, like Franklin Non-
Ferrous Foundry, may not store hazardous waste at its facility for more than 90 days without a permit unless
it is authorized to do so. The illegal storage of hazardous waste at the foundry was discovered in April and
August 2009 during two workplace inspections conducted by the Occupational Safety and Health Admini-
stration (OSHA). OSHA inspectors reported their observations to the EPA. In December 2009, the Criminal
Investigation Division of the EPA executed a search warrant at the foundry and discovered lead and cad-
mium hazardous waste stored on the premises in 55-gallon
drums. A federal grand jury indicted both Wiehl and the
Company in August 2010 for unlawfully accumulating and
storing lead and cadmium hazardous waste at the foundry
site since July 2005. Neither Wiehl nor the company had
been issued a permit to store hazardous waste for more
than 90 days. The company had previously been cited by
the EPA for similar violations in 2002 and 2005, but nei-
ther the company nor Wiehl had faced criminal charges
until now. Wiehl pleaded guilty to the indictment in both
his individual capacity and on behalf of the company last
Photo by Alexander Cohn /Monitor staff Franklin
January. Non-Ferrous Foundry owner John Wiehl looks over
Back to Top cast bronze valves cooling down last week.
Former Vermont Defense Company President Sentenced for Illegal Hazardous Waste Storage— On
May 16, 2012, JON E. GOODRICH, of Bennington, Vermont, was sentenced to pay a $100,000 criminal
fine. He received no incarceration and no probation. GOODRICH is the former president of the Benning-
ton Operation of MACE PERSONAL DEFENSE, INC., located in Bennington, Vermont. On January 10,
2012, Goodrich pled guilty to unlawfully storing hazardous waste at the Bennington facility without a permit.
The Bennington facility of Mace produces tear gas and pepper spray products and produces hazardous waste
as part of its manufacturing process. The federal charges stem from an emergency removal action conducted
by the EPA and Vermont Department of Environmental Conservation beginning in January 2008. The emer-
gency removal action occurred after inspectors observed more than 80 drums of unlabeled chemicals in the
mill buildings. Many of these drums contained hazardous wastes based on their "ignitability" and
"reactivity." Furthermore, there were no signs indicating there was legal storage of hazardous chemicals or
hazardous waste in these areas. Goodrich, Mace, and its employees fully cooperated with this removal action.
Mace and Goodrich spent over $780,000 cleaning up the site. Mace had previously pled guilty and paid a
separate $100,000 fine involving allegations that Mace and Goodrich knowingly stored hazardous waste at
the Vermont Mill Properties facility for several years. Specifically, the allegations stated that the majority of
the hazardous waste was stored outside the facility in shipping containers in close proximity to the Walloom-
sac River. The charges also alleged that Mace and Goodrich received multiple estimates for removing the
hazardous waste beginning in the autumn of 2006 but did not take any action. According to court records,
these original removal estimates were for approximately $70,000.
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EPA Bulletin May 2012 6
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Singapore Ship Operator and Engineers Plead Guilty to Crimes Related to Pollution From Cargo
Ship Traveling to Alabama; Company Sentenced to Pay $1.2 Million Criminal Penalty — On May 30,
2012, a ship management company headquar-
tered in Singapore pleaded guilty and was sen-
tenced in Mobile, Alabama for deliberately fal-
sifying records to conceal pollution discharges
from the ship directly into the sea. TARGET
SHIP MANAGEMENT PTE., LTD , the op-
erator of the M/V Gaurav Prem, pleaded guilty
to a violation of the Act to Prevent Pollution
from Ships for failing to properly maintain an
oil record book as required by federal and inter-
national law, as well as making material false
statements during a U.S. Coast Guard inspec-
tion of the ship at the port of Mobile in Sep-
The M/V Gaurav Prem tember 2011. The company was sentenced to
pay a $1 million criminal fine along with a $200,000 community service payment to the National Fish &
Wildlife Foundation. The community service payment will be earmarked for projects in the Southern Dis-
trict of Alabama, including Mobile Bay. Target was also sentenced to three years probation. As a condition
of the probation, ships operated or managed by Target that will or may call on the United States must be
subject to an environmental compliance plan supervised by outside auditors and the court. PAVONGYUT
VONGVICHINAKUL, the ship's chief engineer, and PAKPOOM HANPRAP, the ship's second engi-
neer, also pleaded guilty to violations of the Act to Prevent Pollution from Ships and are scheduled to be
sentenced on July 19, 2012. Senior Target employees discharged and caused the overboard discharge of oily
bilge waste from the M/V Gaurav Prem on multiple occasions as the vessel sailed from South Korea to Mo-
bile in 2011. The discharges were not recorded in the vessel's oil record book as required. The deliberate
overboard discharges of oily waste were accomplished through the ship's fixed bilge piping system and by
using the ship's general service pump in a manner that intentionally bypassed required pollution prevention
equipment, including the ship's oily water separator and oil content monitor, designed to detect and prevent
discharges containing more than 15 parts per million (ppm) oil, the international standard. The bypass sys-
tem used a "spool pipe" to connect the ship's
bilge system with the ship's ballast system to
make the illegal discharges from the vessel's
bilges and bilge holding tank. This investiga-
tion was conducted by the U.S. Coast Guard
Investigative Service and the U.S. EPA
Criminal Investigation Division. Additional
assistance was provided by the Coast Guard
Sector Mobile and U.S. Coast Guard Eighth
District Legal Office. The case was prose-
cuted by the Department of Justice's Envi-
ronmental Crimes Section and the U.S. Attor-
ney's Office for the Southern District of Ala-
bama.
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Spool pipe used to connect the bilge system to the ballast system on the
ship which allowed the crew to bypass the Oil Water Separator and
discharge oily waste overboard.
EPA Bulletin May 2012 7
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Tennessee Man Criminally Sentenced After Submitting False Permit for Pipeline Project — On May
25, 2012, PETER GRIMES, of Nolensville, Tennessee, was sentenced to 12 months probation and will
pay a $5,000 fine in the Western District of Kentucky after pleading guilty in December 2011 to creating a
false and fictitious permit so that two gas pipelines could be built under Barren River. Grimes admitted to
knowingly and willfully making a false permit authorization letter, and submitted it to the U.S. Army Corps
of Engineers and the Kentucky Department for Environmental Protection (KDEP). In his change of plea,
Grimes admitted that an inspector with the Division of Water, KDEP discovered that the company, Gulfstar,
had constructed a gas pipeline under the Barren River in two locations. When KDEP asked Gulfstar for its
permit, in January 2008, Gulfstar passed the request on to Energy Management Services and Grimes. At the
time, Grimes was working as a professional consultant charged with obtaining all necessary permits. Ac-
cording to an interview with Grimes, the gas pipelines had been constructed in August and September 2007.
In January 2008, Grimes manufactured and submitted a fraudulent and fictitious U.S. Army Corps of Engi-
neers permit authorization letter to an inspector for the KDEP in Bowling Green, Kentucky. The intention
was to create the false impression that construction of the pipeline in Barren River had been conducted pur-
suant to a valid permit. Grimes also submitted the permit authorization letter to an employee of the U.S.
Army Corps of Engineers in Louisville. Grimes admitted that he manufactured a written authorization on
the letterhead of the U.S. Army Corps of Engineers. This entire document was false and fictitious, and it
was material to the regulatory activities of the U.S. Army Corps of Engineers and the U.S. EPA.
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Michigan Man Sentenced for the Crime of Delivering a False Document Regarding Hazardous Materia
- On May 3, 2012, DOUGLAS MERTZ, of Wes
Bloomfield, Michigan, received a $5,000 fine for deliv-
ering a false document regarding a hazardous material
Mertz pleaded guilty to the charge on November 9
2011. In addition to the fine, Mertz was sentenced tc
one year probation and restitution up to $750. Federa
law makes it illegal to sell the refrigerant "R-22" to a
person who is not certified under a program approvec
by EPA, unless the buyer is otherwise legally allowed tc
purchase such refrigerants under Clean Air Act regula
tions. Certain refrigerants, such as R-22, can damage the
earth's ozone layer if they are released into the atmos-
phere. The EPA's certification program ensures tha
individuals who work with ozone-depleting refrigerants like R-22 are trained to properly and safely handle
these substances and minimize their release to the atmosphere. In August and September, 2009, Mertz adver
tised the sale of R-22 on Craig's List with postings such as, "If you cannot get R-22 on your own, no EPA care
or license, we can do business," and, "I have virgin 30 Ib jugs of R-22 that I will sell to anyone who can't oth-
erwise get one for EPA or license reasons and the distributors deny you." Mertz, who himself was certified
then obtained ten containers of R-22 refrigerant and sold them to a person who was neither certified nor other-
wise legally allowed to purchase the R-22. The buyer was in fact an undercover federal agent. To conceal the
illegal sale, Mertz prepared a document that falsely identified the buyer as an employee of the defendant's
business. As part of his sentence, Mertz was required to surrender his EPA certification, which allowed him tc
purchase and work with refrigerants such as R-22. Mertz's accomplice, WASIM IBRAHIM BONY, was
sentenced on April 19, 2012. Bony, who pleaded guilty to aiding and abetting Mertz, was sentenced to pay a
$1,500 criminal fine, and ordered to pay up to $750 in restitution, jointly and severally, with Mertz.
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EPA Bulletin May 2012 8
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Kansas City Man Sentenced to Incarceration for Illegally Handling Asbestos— On May 15, 2012, AN-
THONY CROMPTON was sentenced to five months incarceration and 36 months supervised release after
pleading guilty last October to improperly removing and disposing of asbestos-containing materials.
Crompton was not ordered to pay a fine or restitution as he has a $3.8 million civil judgement against him in
state court. Crompton was an operator for The Citadel Plaza Redevelopment Site and a real estate director
for Community Development Corporation of Kansas City. Crompton admitted that he violated the Clean
Air Act in the process of removing and disposing of regulated asbestos-containing materials from numerous
structures during the demolition and renovation of the Citadel Plaza site from April 2001 to July 2006.
Crompton failed to properly inspect the site for asbestos, did not remove asbestos materials prior to com-
mencing work that could disturb the materials, did not ensure that asbestos materials were adequately wetted
or otherwise captured in a ventilation system to reduce dust prior to disposal, did not ensure that asbestos
materials were placed in leak-tight containers bearing warn-
ing labels, did not ensure that proper shipment records were
maintained, did not ensure that a properly trained person in
asbestos removal procedures was present at all times, did
not ensure that asbestos waste was transported off-site in
properly labeled containers, and did not ensure that asbestos
waste was disposed of at approved disposal sites. WIL-
LIAM M. THREATT was the president and owner of The
Citadel Plaza Redevelopment Site located in midtown Kan-
sas City. In February 2012, Threatt pleaded guilty to im-
properly removing and disposing of asbestos-containing ma-
terials in connection with work at The Citadel Plaza Rede-
Front loader operated by untrained/unlicensed con- . n • -». T -11 1 1111
tractor during demolition of asbestos containing struc- velopment Site. No sentencing date has yet been scheduled
for Threatt.
tures in the Citadel Plaza development.
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Louisiana Corporation Sentenced for Oil Pollution Crimes — On May 16, 2012, PHILSYNERGY
MARITIME, INC., headquartered in Muntinlupa City, Philippines, was sentenced to three years probation,
ordered to pay a criminal fine of $750,000, and a community service payment of $250,000, for violating the
Act to Prevent Pollution from Ships (APPS). Philsynergy pled guilty to a one count Bill of Information on
February 9, 2012. Philsynergy operated the M/V Golden Sakura, a 39,737 gross ton ocean-going bulk car-
rier cargo ship. The vessel left China on June 11, 2011, and arrived at the Port of New Orleans on August
14, 2011, after port calls in Indonesia, Hong Kong and Panama. Philsynergy admitted that from February
23, 2011 through August 15, 2011, engineering crews aboard the M/V Golden Sakura regularly discharged
oily waste water containing more than 15 ppm of oil directly into oceans. The crew did not use the Oil Wa-
ter Separator to determine if the water being discharged overboard contained less that 15 ppm. The Chief
Engineer confessed to the Coast Guard that he used a flashlight to look at the discharge to determine if he
saw a sheen on the water and only if he saw a sheen did he instruct the M/V Golden Sakura crew to use the
Oil Water Separator. As a consequence, the entries in the Oil Record Book regarding use of the Oil Water
Separator were false. Therefore, the Oil Record Book that was presented to the U.S. Coast Guard during
inspection was false in that all disposals of oil bilge water were not fully recorded. In a related case, on
March 12, 2012, WILFREDO SOMBRA, the chief engineer of the M/V Golden Sakura, pled guilty to
making a false statement to the U.S. Coast Guard for the above conduct. Sombra is scheduled to be sen-
tenced on June 27, 2012. This case was investigated criminally by the United States Coast Guard Criminal
Investigative Services and the EPA and was prosecuted by U.S. Attorney's Office for the Eastern District of
Louisiana.
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Seattle Business Owner Sentenced to Prison for Directing Teenage Employee to Illegally Dump Haz-
ardous Chemicals — On May 25, 2012, PAT-|
RICK DOOLEY, of Seattle, owner of Bargains,
Inc., aka AAA Liquidating Services, Inc., was I
sentenced in federal district court for the Western
District of Washington to 33 months in prison and
placed on supervised release for three years for
directing a teen-age employee to illegally dispose |
of hazardous chemicals.
According to records and testimony, in August
2010 Dooley directed a juvenile employee to dis-
pose of surplus industrial strength commercial
chemical cleaning products by dumping them I
down a toilet at the company's south Seattle ware-
house. Acting under Dooley's supervision, the
juvenile employee proceeded to dispose of multiple five-gallon containers of
liquid bleach and an acidic laundry solution. Dooley failed to provide any per-
sonal protective equipment or instruction the juvenile employee to take any pre-
cautions. The two chemicals reacted in the toilet bowl to produce chlorine gas
of a sufficient concentration to cause immediate physical symptoms. Once ex-
posed to the chlorine gas, the juvenile employee got out of the warehouse. He
continued experiencing breathing difficulties, nausea and other symptoms of
chlorine gas exposure. Emergency medical personnel responded and trans-
ported the employee to a nearby hospital where he was treated and released.
Dooley instructed another employee to falsely characterize his employment
status and compensation arrangement to law enforcement officers in an attempt
to obstruct the federal investigation. At various times following the incident,
Dooley claimed the 17-year-old juvenile had simply decided to clean the toilet
on his own and had not been acting on instructions to dispose of the chemicals. The case was investigated
by EPA's Criminal Investigation Division.
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DONOTMIXmTH
AMMONIA, BLEACH, OR
OTHER CHLORINATED
COMPOUNDS. Can react to
release chlorine
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Two Former District of Columbia Department of the Environment Officials Sentenced to a Year in
Prison on Federal Bribery Charges — On May 21, 2012, JOE L. PARRISH and GREGORY A.
SCOTT, former inspectors at the District of Columbia Department of the Environment (DDOE), Air Qual-
ity Division, were sentenced to one year in prison for demanding and receiving $20,000 in cash as bribes for
not reporting asbestos contamination and assessing fines and penalties. Parrish and Scott each pled guilty in
March 2012 to one count of solicitation and receipt of a bribe by a public official. Upon completion of their
prison terms, both men will be placed on two years of supervised release. During that time, each must per-
form 100 hours of community service. As part of their plea agreements, both men have resigned from
DDOE and cannot seek employment with any federal or local government agency in the future. The
charges stem from dealings between Parrish and Scott and a general contractor and management company
at a 10-story apartment building on P Street SW. The management company had hired the contractor to per-
form demolition and renovation work at the site. On August 16, 2011, Parrish and Scott advised the general
contractor that serious issues involving asbestos needed to be addressed or it could result in significant
fines. The inspectors then reached a preliminary agreement that the general contractor would pay them
$10,000 each to avoid the asbestos-related fines at the site. On August 23, 2011, Parrish and Scott met with
a cooperating witness at the apartment building. The inspectors said they were prepared to submit a report
that could lead to proceedings against the management company to collect $280,000 to $300,000 in fines.
They also warned that the infractions could be punishable by jail sentences. The inspectors said they were
willing to "burn" their report and not inform DDOE attorneys of the infractions, provided they were paid
$20,000. The cooperating witness, who was working with law enforcement, then paid bribes of $2,500 cash
each as down payments to Parrish and Scott. The defendants agreed that they would not file their written
report and other evidence of infractions with the DDOE. On September 2, 2011, Parrish and Scott once
again met with the cooperating witness at the apartment building to pick up the final $15,000 payment for
their agreement to overlook the asbestos-related infractions. During the meeting, the cooperating witness
paid Parrish and Scott the $15,000, and the two inspectors were then arrested. This case was investigated
by the FBI, EPA's Criminal Investigation Divison, and the Office of the Inspector General for the District
of Columbia. It was prosecuted by the U.S. Attorney's Office for the District of Columbia.
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Utah Company Sentenced to Maximum Fine for Felony Asbestos Crimes— On May 16, 2012, HAMIL-
TON PROPERTIES (HP) BOSTON BUILDING, LLC, was sentenced in
federal court after pleading guilty to violating provisions of the Clean Air
Act governing asbestos removal in connection with a demolition and reno-
vation project at the Boston Building in Salt Lake City, Utah. The renova-
tion activities, which took place after the company bought the building, oc-
curred from about May 8, 2007, through September 13, 2007. The company
was sentenced to pay a $500,000 criminal fine, the maximum allowed under
law for the violation. The company was also placed on probation for 36
months, and, as a special condition of probation, ordered to conduct
asbestos training for its employees and other entities affiliated with HP
in Utah and Illinois. The company admitted that it purchased the Bos-
ton Building in April 2007 and sought to renovate it. Based on the col-
lective knowledge of its employees, the company knew that the demo-
lition or renovation activity in the Boston Building involved asbestos.
The company acknowledged that prior to engaging in the demolition
and renovation of the building, it failed to thoroughly inspect the parts
of the building where the work was being done for asbestos.
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EPA Bulletin May 2012 11
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Two Oregon Residents who Illegally Diverted Stream and Destroyed Steelhead Habitat Sentenced—
]On May 31, 2012, DAVID DOBER, SR,
69, of Gales Creek, Oregon, pleaded guilty
to violating the Rivers and Harbors Act and
the Endangered Species Act. On the same
day, Dober was sentenced to pay a $500
fine ROBERT H. BLOCK, JR, 61, also
of Gales Creek, Oregon, previously pleaded
guilty to violating the Clean Water Act and
the Endangered Species Act. Block was
sentenced to five years probation, ordered to
pay a $2,500 fine, and to implement a resto-
ration plan on his property designed to miti-
Igate the damage he caused to Gales Creek
and its threatened Upper Willamette River (UWR) Steelhead. The Judge ordered that half of each defendant's
fine be allocated to the Oregon Governor's Fund for the Environment. That Fund is dedicated to local envi-
ronmental cleanup and restoration efforts focused on preserving and protecting Oregon's rivers, watersheds,
and fish and wildlife.
Defendant Block is the owner of a parcel of property that abuts Gales Creek in Gales Creek, Oregon. In
October 2009, Block and Dober used an excavator and a wheel loader to move earthen materials within the
Gales Creek stream channel to divert the flow of the stream. During the course of the work, defendants
moved approximately 100,000 pounds of material in and around Gales Creek, impacting an area approxi-
mately 700 feet long and 50 to 90 feet wide. A National Marine Fisheries Service biologist concluded that
defendants' actions significantly modified and degraded UWR Steelhead habitat. That habitat destruction is
significant because the affected reach of Gales Creek is an important spawning, incubation, and rearing area
and an important migration route for
UWR Steelhead. The biologist concluded
that as a result of the habitat destruction,
UWR Steelhead were killed or injured.
UWR Steelhead are listed as a threatened
species pursuant to the Endangered Spe-
cies Act.
The case was investigated by the EPA
Criminal Investigation Division, the Na-
tional Marine Fisheries Service, and the
U.S. Army Corps of Engineers. The Ore-
gon Department of Justice's Environ-
mental Crimes Unit prosecuted the case.
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EPA Bulletin May 2012 12
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Trials (Back to Quick Links)
Ship's Captain Convicted of Obstructing a Coast Guard Inspection — On May 17, 2012, the former cap-
tain of a Panama-flagged cargo ship that discharged hundreds of plastic pipes into the ocean was convicted by
a jury in Mobile, Alabama, for obstructing a U.S. Coast Guard inspection of the vessel in the Port of Mobile
on September 21, 2011. PRASTANA TAOHIM, the captain of the M/V Gaurav Prem, was found guilty of
two counts of obstruction of justice. At trial, witnesses testified that Captain Taohim ordered the ship's chief
officer to throw hundreds of plastic pipes into the ocean and not record the discharge in the ship's garbage
record book as required. The garbage record book is a required log regularly inspected by the U.S. Coast
Guard. Taohim then knowingly made the garbage record book available during a Coast Guard inspection of
the vessel in the Port of Mobile on September 21, 2011. The plastic pipes had previously contained insecti-
cide and were used to fumigate a grain shipment. Taohim was found guilty in U.S. District Court in the
Southern District of Alabama for obstructing the Coast Guard's inspection of the ship. The jury also found
the defendant guilty of one count of obstruction of justice related to covering up the pollution by creating a
false and fictitious garbage log. Sentencing is set for August 15, 2012. This investigation was conducted by
the U.S. Coast Guard Investigative Service and EPA's Criminal Investigation Division. Additional assistance
was provided by the Coast Guard Sector Mobile and U.S. Coast Guard Eighth District Legal Office. The case
was prosecuted by the Justice Department's Environmental Crimes Section and the U.S. Attorney's Office for
the Southern District of Alabama.
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M/V Gaurav Prem crew members carrying out their orders from Captain Taohim to dispose of the plastic piping at sea be-
tween South Korea and Panama.
Plastic piping floating in the sea
EPA Bulletin May 2012 13
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Plea Agreements (Back to Quick Links)
Missouri Corporation Pleads Guilty to Hazardous Waste Crime — On May 7, 2012, RECKITT
BENCKISER, INC. (RB) entered a
guilty plea in the Western District of
Missouri. The corporation pled guilty
to one count of violating RCRA for the
illegal disposal of hazardous waste
without a permit. RB is a billion dollar
global producer of consumer goods,
including household cleaning products
and Pharmaceuticals. RB operates a
distribution center in Springfield, MO.
During September 2008, RB - Spring-
field illegally disposed of more than
22,000 pounds of hazardous waste by truck to an unpermitted municipal landfill using a non-hazardous
waste manifest. RB was notified by an employee after the illegal disposal and conducted an internal waste
audit using an outside environmental company. The company's own waste audit determined the hazardous
waste was illegally disposed of, however, RB failed to notify EPA or the Missouri Department of Natural
Resources. RB's failure to report the illegal disposal saved the company the cost of remediation and proper
disposal costs.
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Reckitt Benckiser facility in Springfield, MO
Connecticut Contractor Pleads Guilty to Falsifying Lead Inspection Reports - - On May 3, 2012,
JOHN C. SCHEERER, of Thomaston, Connecticut, waived his right to indictment and pleaded guilty to
one count of making a false statement in connection with home improvement projects funded by the U.S.
Department of Housing and Urban Development (HUD). According to court documents and statements
made in court, Scheerer had been hired to perform home improvement and lead abatement work on several
residential properties throughout Connecticut. His work was funded in part by HUD as part of a revitaliza-
tion program that provides federal funds to various cities and towns in the state of Connecticut to be used to
assist homeowners in repairing and updating residential homes. Upon completing his work at each property,
Scheerer was required to hire an independent lead inspector to test for lead hazards and to obtain and submit
a final lead clearance report stating that the testing was in compliance with HUD standards. From March
2006 to March 2010, Scheerer falsified and fraudulently submitted approximately 30 lead abatement clear-
ance reports for properties where he performed work funded by HUD. Instead of hiring an independent lead
inspector to perform final lead clearance testing upon completion of his work, Scheerer fraudulently pre-
pared and submitted false reports of compliance using the letterhead of a third-party lead inspection com-
pany. The reports falsely stated that the lead inspection company had conducted a post lead abatement visual
assessment and lead dust wipe sampling at each property, that the visual assessment and dust wipe samples
were conducted in accordance with HUD regulations, that the visual assessment confirmed that no residual
dust and/or paint chips were present at the completion of the work, and that the dust wipe analysis met HUD
clearance standards. Scheerer fraudulently added a signature purporting to be that of the president of the lead
inspection company at the end of each report. As a result of Scheerer's fraud, the affected cities and towns
had to expend additional funds to test the homes to ensure they were clear of lead hazards. The testing re-
vealed that no significant lead hazards remained. Sentencing is scheduled for August 2, 2012, at which time
Scheerer faces a maximum term of imprisonment of five years.
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EPA Bulletin May 2012 14
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Manhattan Man Pleads Guilty To Distributing And Selling Illegal Pesticides In Chinatown - On May
14, 2012, CHENG YAN HUANG, the owner of a store in the Chinatown area of Manhattan, pled guilty in
Manhattan federal court to distributing and selling at least 2,010 packages of unregistered and unauthorized
pesticides. HUANG was arrested and charged in September 2011 as part of a multi-agency illegal pesticides
crackdown that resulted in 12 arrests and the seizure of thousands of packages of unregistered and mis-
branded pesticides that were sold out of multiple locations in Manhattan. The pesticides were particularly
dangerous because their packaging and appearance were deceptive and could have led them to being mistaken
for cookies or cough medicine, and in one case, actually did. They were not registered by EPA and were
missing required label warnings, so consumers had no way of knowing how dangerous the products were or
how best to protect themselves from harmful exposure. Federal criminal charges were filed against Huang
and delivery driver, JAI PING CHEN, who pled guilty in February 2012.
According to the complaints and informa-
tions, in December 2010, an individual be-
,.«,r«*»: came gravely ill after ingesting a pesticide
0.5%i!Hit^iS »««. «*»»«<* she mistook for medicine. Later investigation
revealed that the pesticide, a small vial of
blue-green liquid labeled primarily in Chi-
nese with the words "The Cat Be Unem-
ployed," was being sold illegally in the Chi-
natown section of Manhattan. The pesticide
was not registered by the EPA nor was it
properly labeled, as required by both state
and federal law. The investigation further
revealed that the product contained almost 61
times the amount of brodifacoum - a rodenti-
cide - than is allowed by the EPA. Addition-
"The Cat Be Unemployed," a rodenticide containing brodifacoum,
which is one of the most toxic products being sold in local Chinatown
stores. Photograph from the Manhattan District Attorney's Office.
ally, brodifacoum is not approved for direct consumer use; it may only be used by licensed professionals. In
response to the poisoning, various law enforcement agencies began a joint undercover investigation of the
illegal sale of toxic pesticides in and around New York City. The multi-agency criminal investigation re-
vealed at least a dozen unregistered and misbranded pesticide products, some with extremely high levels of
toxicity, being sold by more than a dozen vendors in and around Manhattan's Chinatown.
Between July and August 201 1, Huang and Chen distributed and sold more than 4,500 individual packages
of unregistered and misbranded pesticide products to undercover agents. Many of the packages misrepre-
sented the amount of the chemical the pesticide contained, none contained the required ingredient statement,
and none had been approved by the EPA for commercial sale. The products provided to undercover agents by
Huang and Chen contained high levels of Brofidacoum and Fipronil, another active ingredient in insecticides,
and were sold under various names, including "Fuzhou Control Termite Company - Cockroachkiller Bait"
and "Mie Zhang Qing." Huang illegally sold the pesticides at his store in Chinatown, and Chen made multiple
deliveries of pesticides to at least two locations in Manhattan, including Huang's store. During one meeting,
Huang told undercover agents he could provide as many packages of pesticides as they wanted. During a
search of Huang's store on September 14, 2011, agents found over 800 packages of unregistered pesticides.
That same day, agents also found thousands of packages of pesticides in Chen's home. Huang, of New York,
New York, faces a maximum sentence of one year in prison, and a maximum fine of $25,000. He is scheduled
to be sentenced on August 14, 2012. Chen, of Flushing, New York, faces a maximum sentence of one year in
prison, and a maximum fine of $25,000. He is scheduled to be sentenced on June 11, 2012.
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EPA Bulletin May 2012 15
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May 18, 2008 Inspection photo showing emulsified oil
in the marsh. Cedyco Well #10
Delaware Company Pleads Guilty to Criminal Discharges of Oil in Jefferson Parish, Louisiana —
On May 23, 2012, CEDYCO CORPORATION
(CEDYCO) pleaded guilty in federal court in the Eastern
District of Louisiana to negligently discharging oil into
the bayous of Jefferson Parish, a violation of the CWA.
According to the plea agreement, Cedyco agreed to pay a
criminal fine of $557,000. All of the fine money will be
directed to the Oil Spill Liability Trust Fund to aid the
U.S. Coast Guard in responding to future oil spills. Ce-
dyco also agreed to cease operations and divest itself of
all hydrocarbon business interests in the state of Louisi-
ana. Cedyco owned and operated several hydrocarbon
facilities, including fixed barges, platforms, and wells in
the brackish bayous of South Louisiana. As a general
matter, Cedyco's facilities were poorly maintained and
operated without plans and permits required by regula-
tions issued by the Louisiana Department of Environ-
mental Quality as administrator of the federal Clean Wa-
ter Act. Cedyco's negligent operation and poor mainte-
nance of three of its facilities in Jefferson Parish, Louisi-
ana led to harmful discharges of oil into the navigable
waters of the United States. The three facilities are the
tank battery known as the "Bayou St. Denis facility", the
production and storage facility known as the "Bayou Du-
pont facility", and the production well adjacent to the
Bayou Dupont facility known as "Well #10". The Court
set a sentencing date for Cedyco on August 15, 2012.
The case was investigated by agents of CGIS and EPA's
Criminal Investigation Division and by USCG and
LDEQ inspectors. The case is being prosecuted by the
Justice Department's Environmental Crimes Section and
the U.S. Attorney's Office in New Orleans.
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May 29, 2008 Inspection photo showing oil on deck.
Cedyco Bayou St. Denis Facility
May 18, 2008 Inspection photo showing spill from slop
oil tank. Cedyco Bayou Dupont Facility
May 29, 2008 Inspection photo showing oiled outfall. Ce-
dyco Bayou St. Denis Facility
EPA Bulletin May 2012 16
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Former Scott's Miracle-Gro Company Employee Pleads Guilty to Falsifying EPA Pesticide Approvals
— On May 25, 2012, SHEILA R. KENDRICK, pleaded guilty in federal
court to charges that she fabricated EPA registration and other documents I
when she was employed as the Federal Registrations Manager for Scotts
Miracle-Gro Company ("Scotts"). The fraud occurred between 2004 and
2007. Kendrick was charged with making false statements, a felony, as
well as fabricating pesticide documents, a misdemeanor under the Federal
Insecticide, Fungicide and Rodenticide Act. Kendrick was responsible for
obtaining and maintaining federal registrations for Scotts pesticide prod-
ucts and coordinating the labeling requirements with the company depart-
ments that created labels, marketed the products, and registered the prod-
ucts for sale in states. Between 2004 and 2007, EPA officials received
inquiries about two Scotts pesticide products that did not appear in EPA's
official public files as having been registered. EPA sought information
from Kendrick about these products. Kendrick provided EPA with what
she represented to be copies of EPA documents indicating that EPA had properly reviewed and registered
the Scotts products in question, though she knew full well that she had fabricated these documents, that they
were not authentic EPA files, and that the products were not currently registered by EPA. To further con-
ceal her fraud, Kendrick suggested to EPA that the agency must have lost its copies of the documents she
had fabricated. Kendrick also provided false registration documents to other Scotts employees knowing
that they would submit the false documents to state regulatory agencies which, under the mistaken belief
that they were valid, would improperly issue state registrations for the pesticide products. According to
Scotts sales data for five of the products, and as a direct result of Kendrick's fraud, Scott's sold over $39.5
million of products which were not properly registered by EPA at the time of their sale.
When the fabricated pesticide registration documents came to light, EPA ordered Scotts to stop selling
the products, and Scotts issued a recall. Scotts undertook a review of all its registered pesticidal products
and additional criminal violations surfaced that were unrelated to Kendrick's actions. Scotts pleaded guilty
to criminal charges arising from Kendrick's fabrications as well as the other criminal violations which came
to light. Scotts sentencing on those charges is pending, although a plea agreement filed in the case calls for
Scotts to pay a $4 million criminal fine, and to fund environmental projects costing an additional $500,000.
This case was investigated by the EPA's Criminal Investigation Division and the Environmental Enforce-
ment Unit of the Ohio Attorney General's Office, Bureau of Criminal Identification & Investigation. It was
prosecuted by the Justice Department's Environmental Crimes Section and the U.S. Attorney's Office for
the Southern District of Ohio.
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Clerk at St. Louis Vehicle Registration Office Admits Taking Bribes — On May 8, 2012, ALICE H.
GREGORY, a clerk at a privately run Department of Revenue office in St. Louis, pleaded guilty to a federal
mail fraud charge and admitted taking bribes to process false or fraudulent paperwork at least 37 times.
Gregory admitted taking cash in exchange for processing vehicle registrations and titles where the required
paperwork was missing, including safety and emissions certificates, insurance documents and personal prop-
erty tax receipts. Motor vehicles are a leading source of air pollution in the St. Louis area due to the large
number of vehicles on the road and amount of miles traveled daily. EPA has designated the counties of St.
Charles, St. Louis, Franklin, Jefferson and St. Louis City as an ozone nonattainment area. The area does not
meet the federal health-based air quality standards for ground-level ozone, a strong lung irritant. At her sen-
tencing July 31, 2012, she could face eight to 14 months in prison under federal sentencing guidelines.
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EPA Bulletin May 2012 17
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Indictments/Informations (Back to Quick Links)
Massachusetts Water Department Superintendent Charged with Crimes of False Reporting at Wa-
ter Treatment Facilities — On May 9, 2012, the superintendent of the Avon Water Department was
charged in an Information with making false representations in federally required reports, regarding the
disinfectant levels at two water treatment facilities. JOHN TETREAULT has agreed to plead guilty to
two counts of knowingly and willfully submitting to the Massachusetts Department of Environmental Pro-
tection federally required reports that included materially false representations. On four different dates in
2010, Tetreault reported that residual disinfectant levels at two water treatment facilities in Avon met or
exceeded minimum required disinfectant levels, when, in fact, the residual disinfectant levels for each of
the dates was below the required level for more than four hours at each of the facilities.
On October 10, 11, and 12, 2010, at the Memorial water treatment facility, and on May 27, 2010, at the
Porter water treatment facility, residual chlorine levels at the facilities fell below the minimum required
level of .75 mg/L, for more than four hours. In the required monthly reports, Tetreault reported that resid-
ual chlorine levels at the facilities met or exceeded the minimum levels.
Under the federal Safe Drinking Water Act, EPA has established the drinking water standards, reporting
requirements, record keeping requirements and enforcement provisions for states and municipalities for
different types of drinking water sources and drinking water treatment facilities. In 2010, the type of treat-
ment facilities and systems maintained by the town of Avon (groundwater) required the facilities to main-
tain the state-determined residual disinfectant concentration (chlorine) every day that groundwater was
served to the public. If a treatment system such as Avon's failed to maintain the requisite chlorine treat-
ment level, it would be in violation of the treatment technique requirement if the failure was not corrected
within four hours.
Under the federal regulations the Avon Water Department was also required to file routine monthly re-
ports with the Massachusetts DEP that tracked daily residual disinfectant concentrations and that reported
any incidents when the concentrations fell below the state-determined level of .75 mg/L of chlorine. In ad-
dition to filing routine monthly reports with the DEP, a system such as Avon's must also promptly notify
the state any time the system fails to meet the minimum residual disinfectant concentration and that con-
centration.
The allegations in the indictment are mere accusations and all persons are presumed innocent unless and
until proven guilty beyond a reasonable doubt in a court of law.
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EPA Bulletin May 2012 18
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New York Man Criminally Charged with Using Mercury as a Chemical Weapon— On May 16, 2012,
MARTIN S. KIMBER, of Ruby, New York, was charged in three counts with violations of the chemical
weapon statute (counts one and two), which prohibits individuals from possessing, stockpiling, or using a
toxic chemical as a weapon; and with a violation of the consumer product tampering statute (count three).
The indictment alleges that in December 10, 2010, and December 23, 2010, Kimber received medical care at
the Albany Medical Center and that on January 24, 2011, he wrote to complain about having to pay for his
treatment. It further alleges that on February 22, 2011, the Albany Medical Center Associate Medical Director
wrote back to explain why the bills were appropriate and discussed the outcome associated with the defendant
having provided inaccurate information about his injury and his decision not to complete the care proscribed
by his treating physician. The indictment alleges that on four separate occasions, Kimber spread mercury, a
known toxic substance, throughout various areas of the Albany Medical Center cafeteria, including in and
around food served to customers, and on and around heating elements use in food preparation. The indict-
ment alleges that on March 2, 2012, Kimber's activities were captured on hospital video surveillance cameras
in the Albany Medical Center cafeteria—where mercury was subsequently found—including on food con-
sumed by at least one patron. The person who ate the contaminated food was subsequently treated in the hos-
pital's emergency room. An emergency chemical response team at the Albany Medical Center responded
promptly to the mercury contamination on each occasion and removed it from the premises.
A complaint filed in support of an arrest warrant alleged that a search warrant executed at Kimber's house
and automobile resulted in the seizure of two jars of mercury. Besides the seizure of two canisters of mer-
cury, the complaint further alleged that approximately 21 guns were removed from Kimber's residence. Lit-
erature reflecting sympathy for domestic terrorism (The Turner Diaries) was observed during the search.
Searching officers further observed a Nazi swastika on a wall of Kimber's home. The defendant was arrested
on April 25, 2012 and is in jail, being held in pretrial detention.
The two chemical weapons counts each contain a maximum possible term of life in jail and a fine of
$250,000 or twice the gross loss to any victim. The consumer product tampering charge contains a maximum
possible penalty of 10 years in jail and a fine of $250,000 or twice the gross loss to any victim. The allega-
tions in the indictment and criminal complaint are mere accusations and all persons are presumed innocent
unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by special agents from EPA, the Food and Drug Administration-Office of
Criminal Investigations, and the FBI. Assistance has been provided by the towns of Albany and Ulster Police
Departments. The case is being prosecuted by the U.S. Attorney's Office for the Northern District of New
York.
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EPA Pub. 310-N-12-004
EPA Bulletin May 2012 19
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