Environmental Crimes Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
October 2012
This bulletin summarizes publicized investigative activity and adjudicated cases con-
ducted by OCEFT Criminal Investigation Division special agents, forensic specialists,
and legal support staff.
Defendants in this edition:
• John Tetreault — Region I
• Cross Nicastro, Dominick Mazza, Mazza & Sons, Inc. — Region 2
• Edward K. Durst — Region 3
• Chesapeake Appalachia, LLC — Region 3
• Clinton J. Matthews — Region 4
• Donald Fillers, James Mathis, David Wood, Watkins Street Project, LLC — Region 4
• Norberto Guada— Region 4
• Erick Alexander Chicas, Tanveer Anwar — Region 4
• Linda Knox—Region 4
• Long Nguyen, Jin Sung Chang — Region 4
• Renato Mortorsi, Teresina Mortorsi, Kennedy Mint, Inc. — Region 5
• Sheila R. Kendrick — Region 5
• David Overdorf— Region 6
• Kent Phillips — Region 7
• William M. Threatt, Jr., Anthony Crompton — Region 7
• Michael Terry — Region 7
• Bryan Stowe, Stowe Construction Inc. — Region 10
• Daniel Desler—Region 10
EPA Bulletin October 2012 1
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DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 1
John Tetreault
SDWA/Falsifying required disinfec-
tant-level reports
Region 2
Cross Nicastro, Dominick Mazza,
Mazza & Sons, Inc.
CWA/Illegal dumping of asbestos-
contaminated debris into wetlands,
obstructing justice, and false state-
ments
Region 3
Edward K. Durst
CAA/Illegal handling, transporta-
tion, disposal of asbestos, and mak-
ing false statement
Region 3
Chesapeake Appalachia, LLC
CWA/Unauthorized discharge of
stone and gravel into U.S. waters for
natural gas drilling purposes without
a permit
Region 4
Clinton J. Matthews
CAA/Falsely passing vehicle inspec-
tions
Region 4
Donald Fillers, James Mathis,
David Wood, Watkins Street Pro-
ject LLC
CAA/Conspiracy and obstruction of
justice in relation to asbestos salvage
and demolition activities
EPA Bulletin October 2012 2
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DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 4
Norberto Guada
CAA/Illegal importation and sale of
illegal HCFC-22 into U.S.
Region 4
Erick Alexander Chicas, Tanveer
Anwar
CAA/False vehicle emission inspec-
tions
Region 4
Linda Knox
SOW A/Mail fraud
Region 4
Long Nguyen, Jin Sung Chang
CAA/Use of illegal device to bypass
state emissions inspections
Region 5
Renato Mortorsi, Teresina Mor-
torsi, Kennedy Mint Inc.
CWA/Conspiracy related to dump-
ing of liquid cyanide into a river
Region 5
Sheila R. Kendrick
FIFRA/Making false statements and
fabricating pesticide documents
EPA Bulletin October 2012 3
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DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 6
David Overdorf
RCRA/Disposing of hazardous
waste without a permit
Region 7
Kent Phillips
CWA/Negligent discharge of oil
into a creek
Region 7
William M. Threatt Jr., Anthony
Crompton
CAA/Improper handling of asbestos
Region 7
Michael Terry
CAA/Falsifying auto emission test
documents
Region 10
Bryan Stowe, Stowe Construction
Inc.
CWA/Knowing violation of a na-
tional pollution discharge elimina-
tion permit
Region 10
Daniel Desler
CAA/Negligent release of asbestos
during a building demolition
EPA Bulletin October 2012 4
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Quick Links:
•
• Trials
•
•
p. 5-11
p. 12
p. 13- 14
p. 15- 16
Sentendngs (Back to Quick Links)
Three Men and One Company Sentenced in Tennessee for Environmental Crimes - On October 1,
2012, DONALD FILLERS, JAMES MATHIS, and DAVID WOOD, and the WATKINS STREET
PROJECT, LLC who conspired to violate Clean Air Act workplace safety standards when they demol-
ished a Chattanooga, Tenn., factory containing large amounts of asbestos were sentenced in federal court
for the Eastern District of Tennessee for their roles in the conspiracy.
Fillers was sentenced to
serve 48 months in federal prison,
pay a $20,000 fine and serve
three years of supervised release;
Mathis was sentenced to serve 18
months in federal prison and
three years of supervised release;
Wood was sentenced to serve 20
months in federal prison and
three years of supervised release;
and Watkins Street Project was
ordered to pay a $30,000 fine. In
addition, the defendants were or-
dered to pay $27,899 in restitu-
tion to EPA, the Chattanooga De-
partment of Public Works, and
the Chattanooga Hamilton County Air Pollution Control Board for expenditures associated with the emer-
gency response and clean-up of the former Standard Coosa Thatcher plant in Chattanooga.
They were convicted by a jury on January 27, 2012, of conspiracy and criminal violations of the
Clean Air Act, as well as obstruction of justice in relation to salvage and demolition activities at the former
Standard Coosa Thatcher plant. More specifically, the evidence proved that the defendants entered into a
year-long scheme in which the plant was illegally demolished while still containing extensive amounts of
asbestos. Additionally, the defendants hired day laborers and paid them low wages to improperly remove
asbestos-containing materials without following federal regulations that were intended to keep the asbes-
tos, a known carcinogen, from becoming airborne where it could be inhaled.
Witness testimony established that dust from the salvage and demolition activities frequently
wafted onto neighboring properties. The evidence also showed the defendants attempted to cover up their
illegal activities by falsifying documents and Wood lied to federal authorities investigating the case.
The case was investigated by EPA's Criminal Investigation Division and investigators with Chatta-
nooga-Hamilton County Air Pollution Control Bureau. It was prosecuted by Assistant U.S. Attorney Mat-
thew T. Morris and Todd W. Gleason, trial attorney with the Environmental Crimes Section of the Justice
Departments Environment and Natural Resources Division.
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EPA Bulletin October 2012 5
The former Standard Coosa Thatcher plant site where asbestos was improperly
removed during its demolition.
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Former Massachusetts Town Water Department Superintendent Sentenced for Falsifying Reports —
On October 4, 2012, JOHN TETREAULT, former superintendent of the Avon, Mass., water department,
was sentenced in federal court for the District of Massachusetts to one year of probation on charges that he
made false representations in federally required reports regarding the disinfectant levels in the water at two
water treatment facilities. Tetreault was also ordered to pay a $15,000 fine and he must issue letters of
apology to the town of Avon and pay to publish it in the Boston Globe as well as in publications of the
Massachusetts Waterworks Association and the New England Waterworks Association.
Tetreault plead guilty on July 10, 2012, to knowingly and willfully submitting to the Massachusetts
Department of Environmental Protection federally required reports that included materially false represen-
tations. 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 resid-
ual disinfectant levels for each of the dates was below the required level for more than four hours at each
of the facilities.
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Missouri Developer Sentenced for Improperly Handling Asbestos — On October 15, 2012, WILLIAM
M. THREATT, JR., of Kansas City, Missouri, was sentenced in federal district court for the Western Dis-
trict of Missouri for improperly removing and disposing of asbestos-containing materials in connection
with work at The Citadel Plaza Redevelopment Site. He was ordered to pay a $10,000 fine and serve five
years of probation, including up to 120 days at a halfway house and 250 hours of community service.
Threatt, who pleaded guilty on Feb. 1, 2012, was the
president and owner of The Citadel Plaza Redevelopment Site
located in midtown Kansas City. Co-defendant ANTHONY
CROMPTON also of Kansas City, has also pleaded guilty
and was sentenced to three years of probation. Crompton was
an operator for The Citadel Plaza Redevelopment Site and a
real estate director for Community Development Corporation
of Kansas City. He directed the workers who performed
demolition work at the Citadel Plaza site.
Threatt and Crompton admitted they violated the
Clean Air Act in the process of removing and disposing of
regulated asbestos-containing materials from numerous struc-
^ ^ ^ demolition and renovation of the Citadel
Plaza site from April 2001 to July 2006. The Clean Air Act's
asbestos work practice standards describe the appropriate procedures for the notification and safe handling,
stripping, removal and disposal of asbestos-containing materials during renovation or demolition to prevent
emissions of parti culate asbestos material into the air.
Threatt and Crompton failed to properly inspect the site for asbestos, remove asbestos materials
prior to commencing work that could disturb the materials, ensure that asbestos materials were adequately
wetted or otherwise captured in a ventilation system to reduce dust prior to disposal, ensure that asbestos
materials were placed in leak-tight containers bearing warning labels, ensure that proper shipment records
were maintained, ensure that a properly trained person in asbestos removal procedures was present at all
times, ensure that asbestos waste was transported off-site in properly labeled containers, and ensure that
asbestos waste was disposed of at approved disposal sites.
The case was investigated by EPA's Criminal Investigation Division. It was prosecuted by Acting
U.S. Attorney David M. Ketchmark.
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EPA Bulletin October 2012 6
Front loader operated by untrained/unlicensed
contractor during demoMon of asbestos contain-
ing structures in the Citadel Plaza Development.
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Washington State Developer Sentenced to Prison for Criminal CWA Violations — On October 10,
2012, BRYAN STOWE was sentenced in federal district
court for the Western District of Washington to six
months in prison, one year of supervised release, and a
$300,000 fine for knowingly violating a national pollu-
tion discharge elimination permit. In addition, Stowe will
make a $100,000 payment to the National Fish and Wild-
life Foundation for environmental projects targeting re-
sources impacted by the illegal discharges. Stowe, as
president and co-owner of STOWE CONSTRUCTION,
INC., admitted knowingly violating the Construction
General Storm Water Permit for the Rainier Park of In-
dustry project, located on West Valley Highway in Sum-
ner, Wash. Permit violations contributed to two major
Turbid waterfront Stowe Construction site entering
upstream tributary.
landslides at the site in 2010 and 2011. Both slides forced closure of the West Valley Highway.
Last month Stowe Construction, Inc. was sentenced to a $350,000 criminal fine. Both
Stowe and the company will be subject to a court imposed storm water compliance plan for all current
and future development sites. Stormwater has been recognized as one of the biggest threats to the health
of Puget Sound. Rainwater runoff from developed properties and construction sites contribute a signifi-
cant amount of pollutants to the wetlands, streams, and rivers that comprise watersheds feeding into
Puget Sound. Runoff from construction sites in particular can compromise the essential filtering func-
tions of wetlands if developers fail to implement and maintain required measures to minimize and pre-
vent pollutants from leaving the site.
According to various records filed in the case, Stowe, acting on behalf of Stowe Construction,
obtained coverage under the Con-
struction Storm Water General Permit
for the West Valley Highway site in
October 2006. The permit required
Stowe Construction to prepare and
implement a plan to prevent the dis-
charge of pollutants through use site
improvements and practices designed
to minimize and eliminate the migra-
tion of pollutants from the site to
nearby waters. Stowe admits in the
plea agreement to failing to install
adequate improvements and practices between 2007 and 2011. These failures led to significant dis-
charges of pollutants from the site to adjacent wetlands and streams. In addition, the plea agreements ac-
knowledge that weekly site inspection reports and discharge sampling reports intended to assist regula-
tors in assessing the adequacy of site improvement and practices were falsified. State and federal regula-
tors monitoring the West Valley Highway site issued several administrative compliance orders in an un-
successful effort to bring Stowe and the company into compliance. In their request for a prison sentence
prosecutors wrote to the court that the crimes did significant environmental damage.
The case was investigated by EPA's Criminal Investigations Division with assistance from the
Washington State Department of Ecology and the City of Sumner, Washington. It was prosecuted by
Assistant U.S. Attorneys Matthew Diggs and Jim Oesterle.
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EPA Bulletin October 2012 7
Landslide caused by Stowe which forced the closure of the
West Valley Highway
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Missouri Man Sentenced for Falsifying Documents for Vehicle Owners —On October 11, 2012, MI-
CHAEL TERRY, of St. Louis, Missouri, was sentenced in federal court for the Eastern District of Mis-
souri to 13 months in prison for falsifying documentation regarding auto emissions tests and sales tax
documentation during his employment at Sure Start Battery & Tire Company in St. Louis.
According to court documents, the legitimate business of Sure Start
was general vehicle repair, including safety and auto emissions testing.
Terry conducted false safety and auto emissions tests and provided false
safety documentation to vehicle owners for compensation to bypass Mis-
souri state laws associated with vehicle safety and EPA regulations. He
also created false documents showing vehicle insurance; false bill of sale
documents on motor vehicles reducing the actual sales price to lower the amount of state sales tax due; and
paid personal property tax receipts of vehicle owners to register their vehicles, all of which they personally
delivered to the Missouri Department of Revenue office in St. Louis. Terry received illegal payments from
the vehicle owners for these services. The documents were processed by fee/contract clerks as true and
correct and sent to the Missouri Department of Revenue, depriving Missouri of fees and taxes.
The case was investigated by EPA's Criminal Investigation Division, the Missouri Department of
Revenue, Missouri Highway Patrol, Missouri Department of Natural Resources, Internal Revenue Service
Criminal Investigation, and the St. Louis County Police Department. First Assistant U.S. Attorney Mi-
chael W. Reap handled the case for the U.S. Attorney's Office.
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Two North Carolina Men Receive Jail Terms for Conducting False Vehicle Emission Inspections -
On October 19, 2012, ERICK ALEXANDER CHICAS and TAN-
VEER ANWAR, both of Charlotte, North Carolina, were sentenced
in federal district court for the Western District of North Carolina for
conducting false vehicle emission inspections. Chicas was fined
$7,500, given three months in prison to be followed by three months
of home confinement, and was ordered to serve 50 hours of commu-
nity service. Anwar was sentenced to four months in prison to be fol-'
lowed by four months of home confinement, and was ordered to serve ag e h' ° epair
50 hours of community. Both men are prohibited from conducting vehicle inspections in the future.
At the time of their criminal conduct, Chicas and Anwar were employed by two different Charlotte
vehicle repair shops and each was licensed by the state of North Carolina to conduct onboard diagnostic
(OBD) inspections. Court documents indicate that from November 2010 through May 2011, Chicas con-
ducted 236 false vehicle inspections by connecting his person vehicle to the state OBD emissions analyser,
an activity known as "clean scanning," thus providing false passing scores for vehicles that would have
failed because they required emissions related repairs. In exchange for the false passing results, Chicas
typically charged more than the standard inspection fee, sometimes as high as $120 per vehicle.
Anwar was a licensed OBD inspector and owner-operator of Eagle Auto Repair in Charlotte. From
January 2010 through May 2011, Anwar conducted 1,008 vehicles at Eagle Auto. He used his person ve-
hicles or the vehicle of a friend as the surrogate vehicle to falsely pass cars that would have otherwise
failed emissions inspections. Anwar illegally profited in excess of $50 per vehicle in exchange for the
false passing result.
The case was investigated by EPA's Criminal Investigation Division, the North Carolina State Bu-
reau of Investigation, the North Carolina Department of Motor Vehicles' License and Theft Bureau, with
assistance from the North Carolina Division of Air Quality, Mobile Sources Compliance Branch. The
prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney's Office in
Charlotte.
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EPA Bulletin October 2012 8
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North Carolina Woman Sentenced to Prison for Mail Fraud - On October 23, 2012, LINDA KNOX,
of Marshall, North Carolina, was sentenced in federal district court for the Western
District of North Carolina to 33 months in prison to be followed by three years of su-
pervised release, and was ordered to pay $22,056 in restitution for committing mail
fraud.
According to court documents and related
proceedings, Knox is the owner and manager or "If It's Water and
More," a company that, among other things, samples and analyzes
water systems across western North Carolina. Clients included public
parks, churches, restaurants, campgrounds, mobile home parks, apart-
ment buildings, a child development center, a medical center, a com-
munity club, a school, and a fire department, among others. From
2005 through 2010, Knox, through her company, claimed to have
provided water sampling services to her clients, when, in fact, she did
not. According to court records, for almost five years Knox either
Water & More' LLC
failed to properly conduct or did not conduct at all required tests related to the safety of her customers'
water supplies. In fact, Knox sometimes used tap water instead of the actual source's water samples, court
records show. For example, a private lab that was sub -contracted to test Knox's company's 2007 end of
year samples for more than 100 customers indicted that all of the water samples were fake. Knox pleaded
guilty to one count of mail fraud in December 2010. She is required to self-report to the Federal Bureau
of Prisons, upon designation of a federal facility. Federal sentences are served without the possibility of
parole.
The case was investigated by EPA's Criminal Investigation Division, the North Carolina State Bu-
reau of Investigation' s Diversion and Environmental Crimes Unit, and the North Carolina Department of
Environment and Natural Resources Public Water Supply Section. Prosecution was handled by Assistant
U.S. Attorney Steven R. Kaufman of the U.S. Attorney's office in Charlotte.
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North Carolina Men Sentenced for Criminal Violations of the Clean Air Act — On October 19, 2012,
LONG NGUYEN was sentenced to 24 months of probation which includes 60 days home detention, fined
$2000, and ordered to perform 50 hours of community service. On October 30, 2012, JIN SUNG
CHANG was sentenced to 24 months of probation, 6 months of which must be served under home deten-
tion with electronic monitoring, and was ordered to perform 150 hours of community service. Nguyen and
Chang are two of five defendants convicted in this case. Three of the defendants, Stephen Craig Dickin-
son, Alexander Christian Edwards, and Jin Sung Chang, were employed by a car dealership in Charlotte.
In or about 2010, these defendants purchased a device used to bypass the ordinary onboard diagnostics sys-
tem used in state emissions inspections. The defendants used the device to provide false passing results for
vehicles that had their "check engine" light on, indicating they were discharging emissions at a higher rate
than permitted by law, an illegal activity known as "clean scanning." In exchange for the false passing re-
sults, the defendants charged more than the standard fee for the emissions inspections. The other two de-
fendants, Thanh Long Quoc Nguyen and Chuck Yee Cheung were employed at a used car lot also in Char-
lotte, and communicated via text messages with one of the dealership employees asking him to "clean
scan" vehicles for them. On March 26, 2012, Edwards was sentenced to 60 days in prison, four months
home confinement, and two years supervised release. On March 30, 2012, Dickinson was sentenced to
two years probation and a $1000 fine. On April 25, 2012, Cheung was sentenced to 5 months prison, 5
months home confinement, and three years supervised release.
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EPA Bulletin October 2012 9
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Texas Man Sentenced for Hazardous Waste Crime - On October 23, 2012, DAVID OVERDORF
was sentenced to six months home confinement, five years probation, fined $50,000, and ordered to pay
up to $250,000 towards remediation of a contaminated site. On March 18, 2011, Overdorf pled guilty to
disposing of hazardous waste without a permit. Overdorf was the former owner and president of H.O.T.
Transport, Inc. (HOT), a Lufkin, Texas-based chemical transportation business which offered commer-
cial transportation of industrial liquids such as caustics, ethanol, methanol, hot wax, cresol, and formalde-
hyde.
During the normal course of busi-
ness, Overdorf directed HOT employees to
wash out the interiors of trailer mounted
tanks at HOT's place of business knowing
that the tanks contained hazardous wastes.
Overdorf also directed HOT employees to
pump the wash wastewater containing haz-
ardous wastes from a catch basin into a
trailer mounted tank labeled "wastewater"
at the business. On March 10, 2006, Over-
dorf directed a HOT employee to transport
approximately 45,000 tons of tank wash
J Trailer mounted tank at H.O.T. Transport, Inc.
wastewater containing hazardous wastes in
a trailer mounted tank from the business to Quala Wash in Houston for disposal and authorized payment
of $450 to Clinton Promise for the disposal. These wastes possessed the hazardous characteristic of Ig-
nitability. This action was a direct violation of the Resource Conservation and Recovery Act (RCRA).
The RCRA criminalizes the storage, transportation, or disposal of hazardous wastes without a permit.
This case is being investigated by the EPA's Criminal Investigation Division and the Texas Commission
on Environmental Quality's Tyler and Beaumont offices. This case is being prosecuted by the U.S. Attor-
ney's Office for the Eastern District of Texas.
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Former Oil Well Owner and Operator Sentenced for Negligent Discharge into Creek — On October
25, 2012, KENT PHILLIPS, owner of KEPCO Operating Inc., was sentenced in federal district court for
the Western District of Louisiana to one year probation and a fine of $2500. Phillips pled guilty on June
21, 2012 to negligently discharging oil without a permit into Devil's Creek in violation of the Clean Water
Act. Phillips was a corporate officer and owner of Kepco Operating, Inc, an oil production company oper-
ating and leasing oil field sites near Jena, Louisiana, including the Hailey #2 well site.
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EPA Bulletin October 2012 10
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Oregon Man Sentenced for Negligent Asbestos Release - On October 31, 2012, DANIEL DESLER,
managing trustee of Western States Reliance Trust, which was gifted the site of the former Willamette
Industries saw mill and multiple outbuildings located in Sweet Home, Oregon, pleaded guilty in federal
district court for the District of Oregon to
negligently releasing a hazardous air pollut-
ant into the air. Desler was sentenced to
three years of probation. In addition, he will
have five months of home confinement and
complete 300 hours of community service.
He was also ordered to pay full restitution to
EPA, which declared the area a Superfund
site and spent $1,589,752 to clean it up.
Desler was charged by information
with negligent endangerment under the
Clean Air Act by negligently releasing or
causing to be released a hazardous air pol-
lutant, asbestos, into the air during the
demolition of a certain building at the facil-
ity. Desler admitted he should have known that there was asbestos in many of the buildings at the facility
but allowed an unlicensed contractor to conduct demolition and renovation work. The demolition and
renovation work was done without following the work practice standards contained in the National Emis-
sion Standards for Hazardous Air Pollutants (NESHAP) for asbestos, including but not limited to the fol-
lowing work practice standards: proper removal of any asbestos containing material, wetting any asbestos
containing material prior to removal, and proper storage and disposal of any asbestos containing material.
The asbestos NESHAP regulations are
designed to prevent the release of asbes-
tos into the air during asbestos demoli-
tion and renovation activities.
As a result of the way the demoli-
tion and renovation was conducted at the
facility, asbestos, a hazardous air pollut-
ant, was released into the ambient air and
affected the surrounding community, put-
ting the workers and the people in the
surrounding areas at risk for serious bod-
ily harm due to asbestos exposure. Desler
negligently caused this release and the
potential harm by failing to abate or
cause others to abate the asbestos at the
facility.
The investigation was conducted by the Oregon State Police, the Oregon Department of Environ-
mental Quality, and the EPA-Criminal Investigation Division. The case was prosecuted by Assistant U.S.
Attorney Amy E. Potter and Special Assistant U.S. Attorney Patrick Flanagan of the Oregon Department
of Justice.
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EPA Bulletin October 2012 11
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Former Scott's Miracle-Gro Company Employee Sentenced to Prison for Falsifying EPA Pesticide
Approvals - On October 12, 2012, SHEILA R.
KENDRICK was sentenced to 90 days incarceration
after she pled guilty in May 2012 to fabricating EPA
registration and other documents when she was em-
ployed as the Federal Registrations Manager for Scotts
Miracle-Gro Company ("Scotts"). Kendrick made
false statements as well as fabricated pesticide docu-
ments. Kendrick was responsible for obtaining and
maintaining federal registrations for Scotts pesticide
products and coordinating the labeling requirements
with the company departments that created labels,
marketed the products, and registered the products 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 and Kendrick provided
to EPA what she represented to be copies of EPA
documents. Kendrick then told EPA officials that
these files proved that EPA had properly reviewed and
registered the Scotts products in question, though she
knew full well that she had fabricated these docu-
ments, that they were not authentic EPA files, and that the products were not currently registered by EPA.
Further to conceal 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 Scott's em-
ployees 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 Scott's sales data for five of the products, because 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.
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EPA Bulletin October 2012 12
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Trials (Back to Quick Links)
New York Landowner and New Jersey Waste Management Company Owner Convicted of Dump-
ing Asbestos into Wetlands in Upstate New York - On October 16, 2012, CROSS NICASTRO, owner
of a 28-acre piece of property on the Mohawk River in Frankfort, N.Y., along with MAZZA & SONS,
INC., and its owner DOMINICK MAZZA were found
guilty in federal district court for the Northern District of
New York of conspiracy to defraud the United States as
well as to violate the Clean Water Act and Superfund laws
by illegally dumping thousands of tons of asbestos-
contaminated construction debris on the property in upstate
New York. In addition, Nicastro, Mazza and Mazza &
Sons, Inc. were convicted of violating the Superfund law's
requirement to report the release of toxic materials and ob-
structing justice. Mazza was also convicted of making false
I statements to EPA special agents.
According to evidence presented during the 10-day
trial, the defendants engaged in the illegal dumping of thou-
sands of tons of construction and demolition debris, much
Property owned by Cross Nicastro where thousands
of tons of asbestos-contaminated construction and
demolition debris was illegally dumped.
Piles of illegally dumped asbestos-
contaminated debris at the site.
of which was contaminated with asbestos, at Nicastro's property, which contained federally regulated wet-
lands. The dumping occurred without a permit.
Evidence demonstrated that the defendants, along with co-1
conspirators, concealed the illegal dumping by fabricating a New
York State Department of Environmental Conservation permit |
and forging the name of a DEC official on the fraudulent permit.
In addition, the evidence demonstrated that Mazza & Sons, Inc.
obstructed justice by destroying and concealing documents re-
sponsive to a grand jury subpoena.
The conspiracy, substantive Superfund and false statement
counts each carry a maximum penalty of five years in prison and
a fine of either $250,000, twice the gross gain to the defendants,
or twice the gross loss to a victim, whichever is determined to be
greater. The obstruction of justice count carries a maximum penalty of 20 years in prison and similar fines.
The case was investigated by special agents from the EPA's Criminal Investigation Division and the
I Internal Revenue Service Criminal Investigation; crimi-
nal investigators with the New York State Environmental
Conservation Police, Bureau of Environmental Crimes;
investigators from the New Jersey State Police, Office of
Business Integrity Unit; the New Jersey Department of
Environmental Protection; and the Ohio Department of
Environmental Protection. The case was prosecuted by
Todd W. Gleason and Gary N. Donner of the Environ-
mental Crimes Section of the U.S. Justice Department's
Environment and Natural Resources Division, and Assis-
tant U.S. Attorney Craig A. Benedict, of the U.S. Attor-
ney's Office for the Northern District of New York.
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EPA Bulletin October 2012 13
Sample taken from a pile of debris at the site.
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Plea Agreements (Back to Quick Links)
Emissions Inspector Pleads Guilty to Falsely Passing Vehicle Inspections - On October 1, 2012,
CLINTON J. MATTHEWS, of Durham, N.C., pled guilty in federal court for the Eastern District of
North Carolina to conspiring to violate the Clean Air Act and making a material false statement.
Matthews worked at both Express Auto Sales and Car Care Express Auto Sales and Services, both
located in Durham, as a licensed North Carolina emissions inspector. From March 2010 through July
2010, he conspired with others to pass vehicles that would normally have failed the emissions inspection in
exchange for $150 to $225 per car.
It is alleged that Matthews and his co-conspirators would enter a customer's car vehicle identifica-
tion number either manually or by scanning. A surrogate vehicle, unusually 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
vehicle. During the course of the conspiracy, at least 817 vehicles were passed by false inspection. Mat-
thews "clean scanned" 135 of those.
Each day emissions inspection reports are electronically transferred to the North Carolina Office of
Information and Technology Services. EPA requires the state to conduct vehicle emissions testing in cer-
tain areas because the area exceeds national standards for carbon monoxide and ozone.
The case was investigated by EPA's Criminal Investigation Division, the North Carolina State Bu-
reau of Investigations, and the North Carolina Division of Motor Vehicles' License and Theft Bureau. As-
sistant U.S. Attorney Banumathi Rangarajan is prosecuting the case.
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Miami Man Pleads Guilty in Illegal Refrigerant Smuggling Operation - On October 2, 2012, NOR-
BERTO GUADA, of Hialeah, Fla., pled guilty in federal district court for the Southern District of Florida
on charges of knowingly importing approximately 15,640 kilograms of illegal hydrochlorofluorocarbon-22
(HCFC-22), contrary to the provisions of the Clean Air Act. He faces a possible sentence of up to 20 years
in prison, a fine of up to $250,000, and 3 years of supervised release. Sentencing is scheduled for Decem-
ber 11.
According to court records and a factual statement filed I
in court, Guada was hired as a salesman in February 2007 by a
company known as Lateral Investments, LLC (Lateral), a Flor-
ida corporation, engaged in, among other things, importing
merchandise, including refrigerant gas. Between June and Au-
gust 2007, Lateral illegally smuggled large quantities of HCFC
-22 into the United States to sell on the black market. At no
time did Lateral or its principals hold unexpended consumption
allowances that would have allowed them to legally import the
HCFC-22. In this way, during 2007, Lateral illegally imported I
approximately 278,256 kilograms or 20,460 cylinders of restricted HCFC-22, with a market value of
$1,438,270, which Guada was tasked with selling to businesses in the South Florida area. As part of his
agreement in this matter, Guada specifically admitted to his knowing involvement in the importation and
sale, contrary to law, of 15,640 kilograms of HCFC-22 on August 10, 2007.
The case was investigated by EPA's Criminal Investigation Division, ICE's Homeland Security
Investigations, and the Florida Department of Environmental Protection, Criminal Investigation Bureau. It
was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas
Watts-FitzGerald.
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EPA Bulletin October 2012 14
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Chesapeake Appalachia Pleads Guilty to Clean Water Act Violations - On October 5, 2012, CHESA-
PEAKE APPALACHIA, LLC, a wholly owned subsidiary of Chesapeake Energy Corporation, pled
guilty federal district court for the Northern District of West Virginia to three violations of the Clean Wa-
I ter Act related to natural gas drilling ac-
tivity in northern West Virginia. Chesa-
peake pled guilty to three counts of
"Unauthorized Discharge into a Water of
the United States" in that it discharged 60
tons of crushed stone and gravel into
Blake Fork, a water of the United States,
on at least three different occasions in
December of 2008. Chesapeake also ad-
mitted that after discharging the stone
and gravel that it then spread the material
in the stream to create a roadway for the
purpose of improving access to a site as-
sociated with Marcellus Shale drilling
| activity in Wetzel County, West Virginia.
The plea agreement calls for
Chesapeake to pay a fine of $200,000 for
Blake Fork before Chesapeake Appalachia filled in the stream
to create a roadway.
each conviction, for a total fine of $600,000. It also requires that Chesapeake be placed onto probation for
two years and be under the supervision of the court during that time period. Additionally, the parties have
agreed that separate violations committed by Chesapeake and occurring in connection with impoundments
constructed in Marshall and Wetzel counties would be addressed by civil penalties and not via criminal
charges. Chesapeake violated the Clean Water Act when, in 2008, it selected the location for an access
road to a site associated with its drilling activities hired construction contractors to discharge and spread
rock and gravel in Blake Fork in order to develop access to the Hohman Pit, and supervised and directed
the work of the construction contractors. These contractors hired by Chesapeake discharged gravel from
dump trucks into Blake Fork, also known as Blake Run, on at least three separate and distinct occasions.
Chesapeake's contractors, under the supervision of a Chesapeake employee, subsequently used bulldozers
to spread the 60 tons of gravel in Blake
Fork to develop access to the Hohman Pit
in order to facilitate Marcellus Shale gas
drilling activities. Chesapeake failed to
obtain a Clean Water Act permit prior to
this discharge.
The case was investigated by
EPA's Criminal Investigation Division.
It is being prosecuted by Assistant U.S.
Attorney David Perri,.
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Blake Fork after having stone and gravel spread in the stream
to create a roadway.
EPA Bulletin October 2012 15
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Indictments/Informations (Back to Quick Links)
Criminal Indictment Filed for Dumping Liquid Cyanide Into An Ohio River that Lead to Fish Kill -
On October 10, 2012, RENATO MORTORSI, and his company, KENNEDY MINT, INC., located in
Strongsville, Ohio, were both charged in federal district court for the Northern District of Ohio with four
counts each of violating the Clean Water Act, conspiracy, and two counts of obstruction of justice.
TERESINA MORTORSI was charged with three counts: conspiracy and two counts of obstruction of
justice. Renato and Teresina Mortorsi are married and live in Grafton, Ohio. The couple was indicted for
their roles in a conspiracy in which a drum of liquid cyanide was dumped into a storm drain that flowed
into the Rocky River resulting in the death of more than 30,000 fish.
Renato Mortorsi operates Kennedy Mint, located in Strongsville. Kennedy Mint specializes in col-
lectible coins, but previously conducted metal plating and printing operations. The East Branch of the
Rocky River is near the Kennedy Mint facility and storm water from that location's parking lot flows into
the East Branch of the Rocky River. On April 16, 2012, Mortorsi, with assistance from two individuals,
put two drums into a dumpster outside Kennedy Mint. On April 17, the waste hauling company declined to
dispose of the contents of the dumpster because of the two drums inside, according to the indictment. On
April 18, Mortorsi moved the drums from the dumpster and placed them next to the storm drain in the Ken-
nedy Mint parking lot, according to the indictment.
Mortorsi used a hammer and sharp metal tool to punch a hole near the bottom of a drum that in-
cluded a poison label featuring a skull and cross bones. After punching the hole, liquid cyanide in the drum
was discharged into the storm drain and eventually the East Branch of the Rocky River, according to the
indictment. Around April 22, the Ohio Department of Natural Resources received reports of dead fish in
the East Branch of the Rocky River. Ohio DNR officials found dead fish beginning near Bonnie Park.
Downstream for the next three miles, nearly every fish was dead, according to the indictment. The Ohio
DNR counted approximately 30,893 dead fish in that three-mile stretch of the river.
On April 25, personnel from the Ohio Environmental Protection Agency asked to enter the Ken-
nedy Mint facility. Teresina Montorsi stalled the personnel from entering the facility and inspecting the
drums while Renato Montorsi hid the punctured drum in the back of the warehouse, according to the in-
dictment. That day, after Ohio EPA personnel left, the Montorsis moved the punctured drum and another
drum containing cyanide to their home, according to the indictment. On April 27, both Renato and
Teresina Montorsi denied knowledge of the location of the punctured drum, according to the indictment.
On May 16, Renato Montorsi was again asked about the location of the punctured drum and again denied
knowledge of its location, according to the indictment.
The case was investigated by EPA's Criminal Investigation Division, the Ohio Bureau of Criminal
Identification and Investigation; the Ohio Environmental Protection Agency, Office of Special Investiga-
tions; the Ohio Department of Natural Resources, Division of Wildlife, and the Cleveland Metroparks
Rangers, all members of the Northeast Ohio Environmental Crimes Task Force. It is being prosecuted by
Special Assistant U.S. Attorney Brad J. Beeson and Assistant U.S. Attorney Arturo Hernandez.
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 October 2012 16
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Former Asbestos Abatement Company Foreman Indicted on Asbestos-Related Violations—On Oc-
tober 11, 2012, EDWARD K. DURST, of Richmond, Va., foreman of an asbestos abatement company,
was indicted in federal district court for the Western District of Virginia on charges of conspiracy to vio-
late the Clean Air Act, illegal handing of regulated asbestos-containing material, illegal transportation of
regulated asbestos-containing material, illegal disposal of a regulated asbestos-containing material, for
making a false statement to federal investigators.
According to the indictment, Burst's former employer, an asbestos abatement company, was hired
in 2007 to oversee the removal and disposal of asbestos-containing materials, namely aluminum window
frames with asbestos glazing, from Cowgill Hall on the campus of Virginia Tech. Instead of properly han-
dling, transporting and disposing of those materials, in compliance with the Clean Air Act, Durst, in-
structed others to remove and dispose of the window frames from a designated asbestos waste container
and load them into unlabeled vehicles. Durst later instructed others to transport those materials to a metal
recycling facility and kept the cash payments for the scrap aluminum. In addition, Durst is charged with
lying to investigators about his actions. Investigation of the case began when the president of the asbestos
abatement company became aware of Durst's conduct and contacted the Virginia Tech Police Department.
If convicted, the maximum possible penalty faced by Durst is up to five years in prison and/or a fine of up
to $250,000 for each count.
The federal investigation was conducted by the Blue Ridge Environmental Task Force, EPA, the
Office of Inspector General of the U.S. Housing and Urban Development, the Virginia Tech Police Depart-
ment, and the Christiansburg Police Department. Special Assistant U.S. Attorney David Lastra (EPA Re-
gional Criminal Enforcement Counsel) and U.S. Attorney Jennie L.M. Waering will prosecute the case for
the United States.
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 Pub. 310-N-12-010
EPA Bulletin October 2012 17
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