Environmental Crimes Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
August 2012
This bulletin summarizes publicized investigative activity and adjudicated cases conducted
by OCEFT Criminal Investigation Division special agents, forensic specialists, and legal sup-
port staff.
Defendants in this edition:
• Kaara Doolin-Smith — Region 4
• Mari Leigh Childs — Region 4
• Jose Manuel Cabrera— Region 4
• Milton Smith — Region 4
• Timothy and Denise Smither — Region 4
• Prastana Taohim — Region 4
• Guisseppe Bottiglieri Shipping Company, Vito La Forgia— Region 4
• House of Raeford Farms, Inc. — Region 4
• Arville "Buddy" Thomas — Region 4
• William Morgan and Kendrick Covington — Region 5
• William Zirkle — Region 5
• Daniel Evan off— Region 5
• Jeffrey David Gunselman — Region 6
• Cedyco Corporation — Region 6
• Ngan Tien Tran, Nghiem Van Tran, Nghi Cong Tran, Dahn Cong Tran, Bich Dong Ngo, and Huy
Ngoc Nguyen — Region 6
• Thomas K. Tienda— Region 8
• William Duran Vizzerra, Jr. — Region 10
• Kenny Champ — Region 10
EPA Bulletin August 2012 1
-------
DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 4
Kaara Doolin-Smith
RCRA/Illegally storing hazardous
waste
Region 4
Mari Leigh Childs
CWA/Failing to maintain records
and falsifying lab reports
Region 4
Jose Manuel Cabrera
CAA/Falsifying vehicle inspections
Region 4
Milton Smith
CAA/Falsifying vehicle inspections
Region 4
Timothy Smither and Denise
Smither
FIFRA/Misuse of pesticides
Region 4
Prastana Taohim
Obstructing Coast Guard inspec-
tion, not recording illegal discharge
of plastic pipes, providing false re-
cord book
EPA Bulletin August 2012 2
-------
DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 4
Guisseppe Bottiglieri Shipping
Company and Vito La Forgia
APPS/Deliberately falsifying records
to conceal oily waste discharges
Region 4
House of Raeford Farms, Inc.
CWA/Disposing untreated waste wa-
ter into city treatment system without
notifying city officials
Region 4
Arville "Buddy" Thomas
RCRA/Illegal Storage and disposal
of hazardous waste
Region 5
William Morgan and Kendrick
Covington
CAA/Asbestos requirement violation
and bribery
Region 5
William Zirkle
CW A/Negligently discharging
wastewater into sewer system
Region 5
Daniel Evanoff
CAA/Tampering with EPA monitor-
ing devices
EPA Bulletin August 2012 3
-------
DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 6
Jeffrey David Gunselman
CAA/False renewable fuel cred-
its, wire fraud, money laundering,
false statements
Region 6
Cedyco Corporation
CWA/Negligent discharge of oil
into U.S. waters
Region 6
Ngan Tien Tran, Nghiem Van
Tran, Nghi Cong Tran, Dahn Cong
CAA/Falsifying vehicle inspec-
tions
Tran, Bich Dong Ngo, and Huy
Ngoc Nguyen
Region 8
Thomas K. Tienda
CAA/Improper asbestos removal
and improper land use
Region 10
William Duran Vizzerra, Jr.
RCRA/Illegally disposing of haz-
ardous waste
Region 10
Kenny Champ
State Case/Illegal discharge of
sewage into stream
EPA Bulletin August 2012 4
-------
Quick Links:
•
• Trials
•
•
p. 5-13
p. 14
p. 15- 17
p. 18
(Back to Quick Links)
Mississippi Wastewater Operator Sentenced for Failing to Maintain Records and Falsifying Lab Re-
ports — On August 1, 2012, MARI LEIGH CHILDS, former operator of several waste water and drink-
ing water systems in North Mississippi, was sentenced following her previous guilty plea to one count of
submitting false material statements specific to Childs'
operation of publicly owned waste water treatment fa-
cilities and public drinking water systems, and to one
count of failing to establish and maintain records,
make reports, and sample effluents as required by the
Clean Water Act. Childs admitted that she falsified
lab reports and log books to try and cover up her errors
when Mississippi Department of Environmental Qual-
ity and the Mississippi Department of Health began
asking questions about her failure to produce the re-
quired records and reports. Childs was sentenced to
probation for a period of five years, including six
months of home confinement with electronic monitor-
ing. She was also ordered to pay restitution in the
amount of $34,900. The case was investigated by
EPA's Criminal Investigation Division, along with the
Mississippi Department of Health and the Mississippi Department of Environmental Quality and was prose-
cuted by the United States Attorney's Office for the Northern District of Mississippi.
Back to Top
Wastewater lagoon at Chapman Subdivision Publicly
Owned Treatment Works (POTW). Childs falsified lab
results and monitoring reports for multiple POTWs.
Wastewater influent pipe at Rising Sun Subdivision
POTW
Wastewater lagoon at Rising Sun Subdivision POTW
EPA Bulletin August 2012 5
-------
Alaskan Septic Pumper Sentenced to Jail for Dumping Wastes and Theft — On August 29, 2012,
Houston, Alaska resident KENNY CHAMP, 49,
pled guilty in Palmer Superior Court to one count of
Theft in the Second Degree, a Class C felony, and
one count of Pollution of Land/Air/Water, a Class A
misdemeanor. Champ admitted that he dumped hu-
man waste into a stream that flowed onto his
neighbor's property and into the Little Susitna River.
As part of his plea agreement, Kenny Champ was
sentenced to serve 305 days in jail, including 5 days
for the pollution charge, and he will be on probation
for three years. Kenny Champ must pay full restitu-
tion to the City of Houston to restore the City's land
after blockading its roadway, constructing a well,
storing sewage trucks, tires, and barrels. In addition,
he must pay full restitution to the State of Alaska's
Department of Environmental Conservation for any clean-up costs associated polluting the land and wa-
ters of the state from dumping tires and raw sewage. Champ is also required to pay the State a $10,000
fine for polluting the land and waters of the State. The convictions are the result of concerned neighbors
coming forward to report the sewage dumping that threatened a salmon-bearing stream and waters from
which residents frequently obtain drinking water. Those complaints led to a lengthy investigation con-
ducted by the Alaska Department of Environmental Conservation's Environmental Crimes Unit (ECU)
with the assistance of the of the U.S. EPA's Criminal Investigation Division.
Back to Top
Picture taken by a concerned neighbor of
Kenny Champ believed to be discharging sewage
Ohio Man Sentenced for Negligently Discharging Untreated Wastewater into Sewer System — On
August 3, 2012, WILLIAM ZIRLKE was sentenced in federal court in the Northern District of Ohio to
200 hours community service and six months probation after he admitted to negligently failing to ensure
that wastewater was pretreated prior to its discharge into the City of Defiance sewer system. This is a mis-
demeanor in violation of the Clean Water Act. Zirkle worked at the former SK Hand Tool Corporation
manufacturing facility in Defiance, Ohio. That facility discharged wastewater into the city of Defiance
sewer system and was considered an industrial user. Prior to discharging wastewater from the facility into
the sewer system, the wastewater was processed using a pretreatment system. On April 21, 2008, there
was an accident and approximately 210 gallons of chrome plating solution spilled into a cement pit near
the pretreatment system. Once becoming aware of the spill, Zirkle took steps to address the spill by adding
chemicals and attempting to treat it in the pretreatment system instead I
of pumping the spilled chrome solution from the pit into a holding
tank for proper disposal. As a result of Zirkle's negligence, improp-
erly treated wastewater was discharged into the sewer system. The
high concentration chrome wastewater caused damage to the treatment
processes at the City of Defiance sewage treatment plant. This case
was prosecuted by the U.S. Attorney's Office for the Northern District
of Ohio following an investigation by the U.S. EPA's Criminal Inves-
tigation Division, the Ohio Bureau of Criminal Identification and In-
. . Flow entering the Defiance WWTP Grit
vestigation, and the Ohio Environmental Protection Agency Office of Building. This is the location where
Special Investigations, all are members of the Northwest Ohio Envi- fluorescent yellow wastewater was first
ronmental Crimes Task Force. observed entering theplant
Back to Top
EPA Bulletin August 2012 6
-------
Former Owner of North Carolina Hazardous Waste Transportation Company Sentenced for Haz-
ardous Waste Crimes — From July to November 2010, Brian K. Smith and Kaara Doolin-Smith were the
owner-employees of Dove Environmental Management ("Dove"), a licensed hazardous waste transporter.
During that time, they unlawfully stored more than 90 containers of regulated hazardous waste in public
rental storage units. The containers were discovered during an inspection in October 2010 by the rental fa-
cility, after Dove failed to make numerous monthly payments. North Carolina's Department of Environ-
ment and Natural Resources, Hazardous Waste Section, was notified and the investigation prompted an
emergency response by EPA Superfund's Emergency Response and Removal Branch. Several generators
listed on the hazardous waste containers advised that they had contracted with Dove to remove and dispose
of the waste as far back as 2007. Both Doolin-Smith and Smith pled guilty to one count of illegally storing
hazardous waste. On August 28, 2012, KAARA DOOLIN-SMITH was sentenced to 2 years probation, 6
months home detention, 80 hours community service, $150 court fee, restitution to the victim (Waters/
ABR Storage) in the amount of $17,643.36 for compliance and disposal of RCRA materials as well as
$14,500 in legal fees (75% ) incurred by the victim in the matter. Both Kaara Doolin-Smith and Brian
Smith were held jointly and severally liable for the restitution. Brian Smith has not been sentenced and no
sentencing date has been set. EPA's Emergency Response and Removal Division provided a great deal of
support to the investigation.
Back to Top
Containers of hazardous waste left at a storage facility by the defendants. Their discovery prompted an emergency response
by EPA Superfund's Emergency Response and Removal Branch.
EPA Bulletin August 2012 7
-------
Husband and Wife Sentenced in North Carolina to Federal Prison for Misuse of Pesticides— On
August 8, 2012, a husband and wife were sentenced in federal court for the Eastern District of North Caro-
lina for their involvement in the misuse of pesticides. TIMONTY TERRELL SMITHER, former man-
ager of a North Carolina pesticide company, was sentenced to 12 months and one day imprisonment fol-
lowed by three years supervised release. His wife, DENISE SMITHER, former office assistant at the pes-
ticide company, received two years probation with five months of home confinement. On March 14, 2012,
Timothy Smither pled guilty to conspiracy to commit mail fraud and wire fraud and to violating the FI-
FRA. That same day, Denise Smither pled guilty to violating FIFRA.
Beginning in 1995, Steve Miller (now deceased),
I the owner and operator of the Miller Trophy Room, for-
merly known as Love Bug Pest Control, Inc, began to fo-
cus the business on treating animal trophy mounts. In
2001, the company began advertising on the Internet and
claimed to engage in business in 48 states, including
Mount Pleasant, North Carolina. In 2000, Miller decided
to use Termidor SC to treat indoor mounts and began pur-
chasing large quantities of the product. Termidor SC is a
pesticide that is not authorized for indoor use except for
applications into wall voids. As required by law, pesti-
cides must be labeled. FIFRA makes it unlawful to de-
Termidor SC bottles re-labeled by Miller Trophy Room . . . „ . , , , • • • ,
tach, alter, deface, or destroy any labeling on pesticide
containers. The act also makes it unlawful to use any registered pesticide in a manner inconsistent with its
labeling.
In 2002 and again in 2005, Miller and another co-conspirator purchased thousands of labels with
the company's name and address printed on them. From the initial purchase through 2009, Smither and co
-conspirators relabeled the containers of Termidor SC with the company labels. From 2004 to 2009, the
conspirators shipped the relabeled Termidor SC to independent contract employees in other states for ap-
plication and treatment of indoor trophy mounts.
As a consequence of the conspiracy, customers were
unaware that the product sent to them contained Termidor SC,
and proceeded to treat large trophy mounts indoors by mixing
the pesticide with water, and saturating the mounts as they sat
on tarps. The mounts would then be left to air dry. During the '
application process, some customers were directly exposed to
Termidor. Several reported holding the mounts while they were
being sprayed and that the chemical made contact with their
arms and hands. One customer reported that his wife ran a day
care center out of their home and that children played on and AnimaltrophyafterTermMorSCwasappli£d
petted the mounts from time to time after the treatments. Cus-
tomers were told that the chemical being applied was completely safe, would not hurt them, and was a
Miller Trophy Room "secret" chemical. To conceal the use of Termidor SC, the conspirators created false
Material Safety Data Sheets that stated in Section II - Hazardous Ingredients/Identity Information,
"Ingredients are considered a 'TRADE SECRET'". A restitution hearing is set for November 7, 2012.
Investigation of the case was conducted by the U.S. EPA's Criminal Investigation Division, the
EPA Region 4 - Civil, the North Carolina Department of Agriculture Structural Pest Control and Pesticides
Division, and the North Carolina State Bureau of Investigation. It was prosecuted by U.S. Attorney's Of-
fice for the Eastern District of North Carolina.
Back to Top
r EPA Bulletin August 2012 8
-------
Across the street from the facility was a youth gym-
nastics center.
Alabama Man is Sentenced for Improperly Storing and Disposing of Hazardous Waste —
On August 24, 2012, ARVILLE "BUDDY" THOMAS,
71, was sentenced to three years' probation for storing and
disposing of hazardous waste at his former company in
Prattville, Alabama, without a permit. Thomas previously
owned Deep South Plating, Inc. located in Prattville, Ala-
bama. Deep South Plating was a metal plating company that
used heavy metals in liquid form. These liquid metals cre-
ated hazardous byproducts, including copper cyanide,
nickel cyanide and sulfuric acid. These and other hazardous
byproducts were improperly stored in open vats and unse-
cured metal drums on the property. Thomas abandoned the |
company in 2008 and moved to Tennessee. When federal Deep South Plating, abandoned by Thomas in 2008,
agents located Thomas in Tennessee, he admitted that the and left unsecured with hazardous waste inside.
hazardous materials at Deep South Plating were improperly
handled and stored before he abandoned his company. Ear-
lier this summer, Thomas pleaded guilty to a one-count fel-
ony information charging him with storing and disposing of
hazardous waste without a permit. This case was investi-
gated by the U.S. EPA's Criminal Investigation Division j
and prosecuted by the U.S. Attorney's Office for the Middle
District of Alabama. EPA's Emergency Response and Re-
moval Division provided a great deal of support to the in-
vestigation.
Back to Top
Vats, caustics and precipitate. Note the "drag out"
from years of electroplating. Hazardous waste from
the business had never been properly disposed of by
the defendant, despite operating the company for
over 14 years.
There were numerous open top drums within the building that
were either low or high pH.
These were the hazardous conditions left inside the
unsecured facility. The entire building and founda-
tion was ultimately removed and cost the federal gov-
ernment approximately $770,000 to clean up.
EPA Bulletin August 2012 9
-------
Ship's Captain Sentenced for Obstructing A Coast Guard Boarding — On August 15, 2012, PRAS-
TANA TAOHIM, the captain of the M/V Gaurav Prem, was sentenced in federal court for the Southern
District of Alabama to one year and one day incarceration, followed by three years of probation if not im-
mediately repatriated to Thailand after his custody sentence. He was found guilty of obstructing a U.S.
Coast Guard inspection of his Panama-flagged cargo ship that discharged hundreds of plastic pipes into the
ocean. The discharges of plastic were not recorded in the ship's garbage record book, a required log regu-
larly inspected by the U.S. Coast Guard. It was shown during trial that the Captain Taohim ordered the
chief officer to throw the plastic into the sea and not record
the discharge in the ship's garbage record book. It was also
shown at trial that the captain then knowingly made the gar-
bage record book available for the September 2011 inspection.
The investigation was conducted by the U.S. Coast Guard In-
vestigative Service and the EPA Criminal Investigation Divi-
sion. 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 of the Environment and Natu-
ral Resources Division and the U.S. Attorney's Office for the
Southern District of Alabama. M/V Gaurav **"» crew Ambers carrying out
their orders from Captain Taohim to dispose of the
Back to lop plastic piping at sea.
Italian Ship Owner and Chief Engineer Sentenced for Crimes Related to Illegal Discharges from
Cargo Ship —On August 15, 2012, GUISSEPPE BOTTIGLIERI SHIPPING COMPANY S.P.A, a
shipping company headquartered in Italy, was sentenced in federal court for the Southern District of Ala-
bama to pay a $1 million criminal fine, serve four years of probation, and make a $300,000 community ser-
vice payment to the National Fish and Wildlife Foundation for deliberately falsifying records to conceal dis-
charges of oily wastewater from the M/V Bottiglieri Challenger directly into the sea. The company must
also fund and implement a comprehensive environmental compliance plan during the term of proba-
tion. Chief Engineer VITO LA FORGIA was sentenced to one month in jail. The company had plead
guilty to violating the Act to Prevent Pollution from Ships (APPS) for failing to properly maintain an oil
record book as required by federal and international law. La Forgia plead guilty to violating the same act.
Between December 19, 2011, and January 25, 2012, La Forgia and other senior Bottiglieri Shipping Com-
pany employees discharged oily bilge waste from the M/V Bottiglieri Challenger on multiple occasions as
the vessel sailed from Singapore to Brazil and then from Brazil to Mobile. The vessel arrived in the Port of
Mobile on January 25, 2012, and underwent a Coast Guard inspection. Based on information provided to
the Coast Guard by engine department crewmembers and evidence discovered during the Coast Guard's
inspection, it was evident that there were internal transfers and discharges of oily waste into the ocean that
were not recorded in the vessel's oil record book as required. The deliberate overboard discharges of oily
waste were accomplished through the use of a "magic pipe" that connected the ship's purifier sludge tank
with the ship's bilge holding tank, the contents of which were then pumped overboard without first being
processed through required pollution prevention control equipment designed to detect and prevent dis-
charges containing more than 15 parts per million oil. This investigation was conducted by the U.S. Coast
Guard Investigative Service in Mobile and the U.S. EPA's Criminal Investigation Division. Additional as-
sistance was provided by U.S. Coast Guard Sector Mobile. The case was prosecuted by the U.S. Attorney's
Office for the Southern District of Alabama and the Justice Department's Environmental Crimes Section of
the Environment and Natural Resources Division.
Back to Top
EPA Bulletin August 2012 10
-------
Delaware Company Criminally Fined for Unlawful Discharges of Oil in Louisiana Waters — On
August 15, 2012, CEDYCO CORPORATION, a
Delaware company headquartered in Houston, was
sentenced in federal court for the Eastern District of
Louisiana for negligently discharging oil into the bay-
ous of Jefferson Parish, Louisiana. The company was
fined $557,000. Cedyco had plead guilty of violating
the Clean Water Act, which makes it a misdemeanor
to negligently discharge harmful quantities of oil into
navigable waters of the United States. 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 fu-
ture oil spills. Additionally, Cedyco also agreed to
cease operations and divest itself of all hydrocarbon
business interests in the state of Louisiana.
May 18, 2008 Inspection photo showing spill from slop
oil tank. Cedyco Bayou Dupont Facility
Cedyco owned and operated several hydrocarbon
facilities, including fixed barges, platforms and wells, in
the brackish bayous of South Louisiana. As a general mat-
ter, Cedyco's facilities were poorly maintained and oper-
ated without plans and permits required by regulations is-
sued by the Louisiana Department of Environmental Qual-
ity (LDEQ), state administrator of the federal Clean Water
Act. Cedyco's negligent operation and poor maintenance
of three of its facilities in Jefferson Parish 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 Dupont facility," and the pro-
May 18, 2008 Inspection photo showing emulsified
oil in the marsh. Cedyco Well #10
duction well adjacent to the Bayou Dupont facility known as "Well #10."
The case was investigated by agents of the Coast Guard Inspection Service and U.S. 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 for the Eastern
District of Louisiana.
Back to Top
February 19, 2008 Inspection photo showing ab-
sorbent boom with vegetation. Cedyco Bayou Du-
pont Facility
May 29, 2008 Inspection photo showing oiled out-
fall. Cedyco Bayou St Denis Facility
EPA Bulletin August 2012 11
-------
Property Owner Jailed for Improper Asbestos Removal and Use
— On August 17, 2012, THOMAS K. TIENDA was sentenced in
Pueblo County District Court to four years in jail for releasing asbes-
tos into the air after demolishing a Pueblo house. Instead of hiring
properly licensed contractors to safely demolish a multi-family
house, Tienda hired homeless individuals and handymen to do the
work in order to save money. He hid the fact that his building con-
tained asbestos from all of the workers. The demolition work, which
also lacked the proper permit from the city, resulted in the release of
asbestos into the air. In addition to intentionally exposing his work-
ers to asbestos, Tienda also reused some the materials to fill potholes
at his other properties.
Back to Top
Pictures depicting demolition work that resulted in the release of asbestos
Supervisor of Michigan Town Sentenced to Three Years in Prison for Asbestos and Bribery Crimes
— On August 2, 2012, WILLIAM MORGAN, a former supervisor of Royal Oak Township, a suburb of
Detroit, was sentenced in federal court to three years in prison after previously pleading guilty to charges
that he conspired to defraud the U.S. Department of Housing and Urban Development (HUD), violate the
Clean Air Act's asbestos requirements, and commit bribery. Morgan's criminal conduct involved the
awarding of a contract and distribution of federal funds that were intended to be used by communities for
the improvement of blighted areas by removing dilapidated buildings. The funding was received through
HUD's Neighborhood Stabilization Program. Morgan, in addition to being Township supervisor, was also
Royal Oak's coordinator for the stabilization program. Prior to the awarding of the contract, Morgan had
received a $10,000 bribe from Sureguard/PBM, one of the companies that submitted a bid for the demoli-
tion and asbestos removal of an abandoned theater on Eight Mile road. In return for the bribe, Morgan at-
tempted to steer the contract to Sureguard/PBM. Despite Morgan's efforts, Royal Oak's Board of Supervi-
sors awarded the contract to another company, which had submitted a lower bid. During the demolition
process, Morgan asked for and received cash payments of $500 and $1,000 from the owner of the company
that had won the contract. Morgan received these payments under the belief that they were in return for his
approval of a change order covering the asbestos abatement that fraudulently inflated the cost of the work.
One of Morgan's co-conspirators, Terrance Parker, received a
sentence of 21 months. Another co-conspirator, KENDRICK
COVINGTON, was sentenced on August 28, 2012 to 2 years
probation. Co-conspirator, Marcus Brown is scheduled to be
sentenced on September 11, 2012. The case was investigated by
! special agents of the Federal Bureau of Investigation, HUD's
Office of the Inspector General and EPA's Criminal Investiga-
tion Division. It was prosecuted by the United States Attor-
ney's Office for the Eastern District of Michigan.
I Back to Top
EPA Bulletin August 2012 12
-------
Emissions Inspector at Texas Vehicle Inspection Stations Sentenced to Prison for Falsifying Emis-
sions Test Results; Five Others Awaiting Sentencing — On August 13, 2012, NGAN TIEN TRAN, 29,
was sentenced to serve!2 months and 1 day of incarceration followed by one year of supervised release
after pleading guilty to one count of making a Clean Air Act false statement. Tran was an emissions in-
spector technician in Arlington, Texas and admitted that he falsified Texas state emissions tests at two state
-certified inspections stations. Vehicles in the North Texas Region, which includes Dallas and Tarrant
counties, are required to pass annual inspections to ensure that their emissions do not exceed limits for hy-
drocarbons, nitrogen oxide and other compounds. Five other individuals also pled guilty to Clean Air Act
violations. Specifically, NGHIEM VAN TRAN, 54, and NGHI CONG TRAN, 32, each pleaded guilty
to one count of conspiracy to violate the Clean Air Act. DAHN CONG TRAN, 26, BICH DONG NGO,
26, and HUY NGOC NGUYEN, 26, each pleaded guilty to one count of making a Clean Air Act false
statement. All of the defendants are residents of Arlington, Texas, and remain on bond pending sentencing
hearings.
According to documents filed in the case, the inspection stations, Mike's Autocare and Tommy
Tech, performed approximately 7,656 fraudulent emissions tests between August 2009 and March 2011.
The defendants circumvented the required emissions testing procedures by substituting vehicles that would
pass the emissions test in place of vehicles that had previously failed or showed equipment malfunctions.
In most instances, the vehicle needing an emissions test was not present at Mike's or Tommy Tech when
the emissions tests were conducted, and the defendants who conducted the fraudulent tests received the
necessary identifying vehicle information from Nghiem Van Tran and Nghi Cong Tran via a text message
or a handwritten slip of paper. The defendants generated fraudulent emissions certificates and transmitted
fraudulent testing results to the Texas Information Management System (TIMS) database managed by the
Texas Department of Public Safety. The defendants demanded up to $80 for each fraudulent test, well
above the state-mandated maximum charge of $39.75. Proceeds from the fraudulent emissions tests were
deposited into a bank account for "Upland Investment," which was controlled by Nghiem Van Tran.
The investigation was conducted by the U.S. EPA's Criminal Investigation Division; the Texas De-
partment of Public Safety; and the Texas Commission on Environmental Quality. It is being prosecuted by
the U.S. Attorney's Office for the Northern District of Texas.
Back to Top
EPA Bulletin August 2012 13
-------
Trials (Back to Quick Links)
North Carolina Poultry Processing Plant Convicted for Knowing Violations of Clean Water Act —
On August 20, 2012, a federal jury found HOUSE OF RAEFORD FARMS, INC., the owner and opera-
tor of a poultry slaughtering and processing facility located in Raeford, North Carolina, guilty of 10 counts
of knowing violations of the Clean Water Act. House of Raeford allowed plant employees to bypass the
facility's pretreatment system and send its untreated wastewater directly to the city of Raeford's wastewa-
ter treatment plant, without notifying city officials. In addition, House of Raeford failed to prevent em-
ployees from sending thousands of gallons of wastewater into a pretreatment system that did not have the
capacity to adequately treat the wastewater before it was discharged to the city plant. The untreated waste-
water that was discharged directly to the city
plant was contaminated with waste from proc-
essing operations, including blood, grease and
body parts from slaughtered turkeys. A House
of Raeford former employee admitted that the
facility would continue to "kill turkeys" despite
being warned that the unauthorized bypasses had
an adverse impact on the city's wastewater treat-
ment plant. The city plant was responsible for
treating industrial, commercial and residential
wastewater before it was discharged to Rockfish
Creek in Hoke County. The bypasses and failure
to report them violated House of Raeford's pre-
treatment permit as well as the city's sewer use
ordinance. Many of the bypasses took place
while House of Raeford was subject to a consent
order with the city that required it to construct a
new pretreatment system and comply with all
requirements of its pretreatment permit. A num-
ber of the bypasses were recorded in log books
kept by House of Raeford Inc. wastewater opera-
tors, and were never revealed to the city. House
of Raeford Inc. faces a maximum fine of
$500,000 or twice the gain or loss resulting from
the offenses, whichever is greater, per count.
Sentencing is scheduled for November 28, 2012.
Back to Top
•;<' ' >' irn-ji'V - .;»
^Etm
The bar screen at the City ofRaeford's POTWcontaminated with
turkey parts / turkey solids
EPA Bulletin August 2012 14
-------
Plea Agreements (Back to Quick Links)
Executive of Wisconsin Aluminum Facility Pleads Guilty to Tampering With EPA Monitoring De-
vices Required Under Clean Air Act — On August 7, 2012, DANIEL
EVANOFF pled guilty in the Eastern District of Wisconsin to a federal
charge of rendering inaccurate a monitoring device required under the
Clean Air Act. Evanoff was employed by J.L. French in a managerial
capacity, including serving as vice president of Allotech International
LLC, a subsidiary of J.L. French, with responsibility for overseeing the
Alloy Division at Gateway, Taylor, and a third facility in Glasgow, Ken-
tucky. J.L. French is a secondary aluminum processing business head-
quartered in Sheboygan, Wisconsin, where it has two facilities, Gateway
and Taylor. J.L. French manufactures products from mixed aluminum
scrap. The facilities melt secondary aluminum in furnaces, a process
which produces emissions of air contaminants from numerous sources.
EPA has determined that these sources require regulation because they
emit various hazardous air pollutants, including volatile organic com-
pounds such as dioxin/furans, benzene, styrene, acrylonitrile, methylene
JL French baghome stack
chloride, napthalene, and formaldehyde; hazardous inorganic "acid gas" compounds such as hydrogen
chloride (HC1), hydrogen fluoride (FTP), and chlorine (C12); and hazardous metals such as antimony, arse-
nic, lead, manganese, beryllium, cadmium, chromium, cobalt, mercury, nickel, and selenium. As a result,
the process requires the use of air pollution control equipment such as afterburners and baghouses. Vapors
that are created during the extreme heat cleansing process pass through an afterburner and then to a bag-
house. The emissions from the industrial furnaces used to melt the secondary aluminum are also captured
in baghouses.
Evanoff admitted that he rendered inac-
I curate a monitoring device required under the
CAA. Specifically, he admitted that he caused
and directed the creation of false baghouse leak
detection and temperature charts required to be
maintained at the J.L. French Gateway facility.
Evanoff is scheduled for sentencing on October
24, 2012. His sentencing guidelines are a
maximum fine of $250,000 and two years of
I imprisonment.
On April 3, 2012, Evanoff pled guilty in
the Western District of Kentucky to conspiracy
to defraud the United States and rendering inaccurate a monitoring device required under the CAA. In this
case, Evanoff and others agreed to create false records concealing that J.L. French's Glasgow, Kentucky
facility improperly exceeded production and air emissions limits. Further, Evanoff directed others to install
a temperature resistor on air pollution control equipment to create a false temperature reading and to make
it appear as though the pollution control equipment was operating properly. Evanoff also instructed that
the temperature resistor be removed to prevent its discovery by inspectors from the Kentucky Department
of Air Quality. For these crimes, Evanoff faces a maximum potential penalty of seven years in prison, a
$500,000 fine, and supervised release for a period of no more than three years.
Back to Top
EPA Bulletin August 2012 15
JL French Reverb Furnace
-------
Owner of Pavement Painting Business Pleads Guilty in Alaska to Illegally Disposing Hazardous
Waste — On August 17, 2012, WILLIAM DURAN VIZZERRA, JR. pleaded guilty in federal district
court for the District of Alaska to illegally disposing of hazardous waste at a storage lot in Anchorage.
Vizzerra was the president, director and part-owner of Precision Pavement Markings Inc. (PPMI), a road
and parking lot painting and striping business
that operated from a storage lot in Anchorage
from at least 2006 through 2009. He used the lot
to store hazardous waste, including methyl
methacrylate paint and toluene that was used to
flush the paint lines, nozzles and sprayers used in
his business. Having made no attempts to prop-
erly dispose of the waste, on approximately No-
vember 1, 2009, Vizzerra illegally abandoned
approximately 321 55-gallon drums, 179 five-
gallon pails and two 200-gallon totes of hazard-
ous waste. The waste, totaling 204,750 pounds,
was determined to be hazardous because it was'
extremely flammable.
Flat bed with drums abandoned by Vizzerra. Photograph was
taken by EPA Special Agents during the execution of a search
warrant at the property in December 2010.
In November 2010, a citizen reported the
abandoned drums to EPA and EPA Criminal In-
vestigation Division agents observed several hundred 55-gallon drums and smaller containers at the storage
lot, some of which were stacked two-high on a trailer and some of which were stored directly on the
ground. Many of the drums were marked "waste" or held hazardous markings, such as "flammable" or
"flammable liquid." Many were rusted and in decrepit condition or bulging. The investigation revealed
that some of the drums were from a prior pavement business of Vizzerra's that had dissolved several years
earlier.
Under RCRA, hazardous waste, due
I to its dangerous qualities, may only be dis-
posed of at a licensed treatment, storage or
disposal facility. The storage lot Vizzerra
used was neither equipped nor permitted for
the disposal of hazardous waste. Yet,
knowing this, Vizzerra illegally abandoned
and disposed of the waste at the lot, which
cost his landlord $380,877 to clean up and
properly dispose. The maximum penalties
I for knowingly disposing of hazardous waste
include five years of incarceration and a fine
of $50,000 per day of violation. Sentencing
has been set for November 14, 2012.
The investigation was conducted by
the U.S. EPA's Criminal Investigation Divi-
sion. The case was prosecuted by the Envi-
ronmental Crimes Section of the Justice Department, the U.S. Attorney's Office for the District of Alaska,
and the Regional Criminal Enforcement Counsel for the Environmental Protection Agency's Region 10 in
Seattle.
Back to Top
EPA Bulletin August 2012 16
Photograph taken in April 2011 by EPA Special Agents during a heli-
copter surveillance overflight of the site prior to final removal by
Superfund.
-------
North Carolina Man Pleads Guilty to Conducting Illegal Vehicle Emission Inspections — Information
provided to EPA's criminal enforcement program by the North Carolina Division of Air Quality ("DAQ") -
Mobile Sources Compliance Section, indicated that Carolina Tire and Service ("Carolina Tire") located in
Pineville, North Carolina, conducted numerous illegal OBDII emission inspections during May 2012.
DMV records indicate Carolina Tire is authorized to conduct OBDII vehicle inspections pursuant to the
Clean Air Act and North Carolina's SIP with EPA. The OBDII
technician number linked to these illegal inspections belongs to
JOSE MANUEL CABRERA. On August 29, 2012, Cabrera
pled guilty to one count of conspiracy to violate the Clean Air
Act. No sentencing date has been set. The fraudulent passing
| of vehicles subject to inspection pursuant to North Carolina's
SIP results in increased pollution (NOX, Carbon Monoxide,
I Hydrocarbons). The Charlotte metropolitan area is ranked
among the worst offenders in the nation for air pollution result-
| ing from vehicles emissions.
Example of an OBDII Simulator used by inspec-
tors to bypass emission testing
North Carolina Emissions Inspector Pleads Guilty to Falsely Passing Vehicle Inspections — On Au-
gust 6, 2012, MILTON SMITH pled guilty in the Eastern District of North Carolina to conspiring to
violate the Clean Air Act and to making a material false statement, representation, or certification. Smith
worked at Express Auto Sales and Services and Car Care Express Auto Sales and Services, both in Dur-
ham, North Carolina, as a licensed North Carolina emissions inspector. From May 2009 to July 2010,
Smith conspired with others to pass vehicles that would normally have failed the emissions inspection in
exchange for $150 to $225 per car. Smith and his co-conspirators would enter the vehicle identification
number either manually or by scanning. A surrogate vehicle, usually one manufactured between 1996
and 1999 that would not generate a vehicle identification number when connected to the analyzer, would
be selected. Using the surrogate vehicle, an emissions report would be generated for the customer's ve-
hicle. During this period, 817 vehicles passed the false inspection. Each day emissions inspection re-
ports are electronically transferred to the North Carolina Office of Information and Technology Services
in Raleigh. EPA requires the state to conduct vehicle emissions testing in certain areas because the area
exceed national standard for carbon monoxide and ozone. Sentencing has been set for December 3,
2012.
Back to Top
EPA Bulletin August 2012 17
-------
Indictments/Informations (Back to Quick Links)
Federal Grand Jury in Charges Texas Man with 79-count Indictment Related to False Renewable
Fuel Credits — On August 8, 2012, a federal grand jury in the Northern District of Texas handed down a
79-count indictment against former Absolute Fuels chief executive officer JEFFREY DAVID GUNSEL-
MAN, accusing him of wire fraud, money laundering, and making false statements under the federal Clean
Air Act. The indictment also names four corporate defendants — all businesses Gunselman apparently
controlled. It is alleged that Gunselman and his company sold federal renewable fuel credits to oil refiners
and brokers without making the biodiesel to go with the credits. It is further alleged that Gunselman col-
lected more than $41.7 million on the sale of more than 48 million fuel credits — called Renewable Identi-
fication Numbers (RINS) — in 51 transactions between September 2010 and October 2011. Because those
transactions were conducted through a federal computerized clearing house, each of those deals is treated
as a separate wire fraud count. The 24 money laundering counts are based on a variety of purchases Gun-
selman allegedly made with money from the questioned transactions. Some of those purchases included
the $2.65 million house in Boerne, Texas, he bought from Boston Red Sox pitcher Josh Beckett; $1.6 mil-
lion for his Gulfstream G3 jet; $1.4 million for a building at 3309 101st St.; $166,720 for San Antonio
Spurs season tickets and a corporate sponsorship; $355,000 for a demilitarized M60 Patton tank and other
military hardware; and $50,000 in Las Vegas casino credit. The four counts of making false statements
under the Clean Air Act include making three false reports to EPA's central data exchange claiming to
have produced more than 1.3 million gallons of biodiesel when in fact his business had made none, and
telling a site inspection contractor that he needed more time to assemble compliance documents when
those documents didn't exist. In addition, the indictment includes a forfeiture notice detailing personal
property, cars, bank accounts and real estate the government has already seized from Gunselman and his
wife Criselda.
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.
Back to Top
EPA Pub. 310-N-12-008
EPA Bulletin August 2012 18
------- |