Rnffwrl n
&EPA
Environmental Crimes Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
November 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:
• Martin S. Kimber — Region 2
• Professional Mobile Cleaning, Inc. — Region 3
• Tennie White — Region 4
• William R. "Rusty" Miller — Region 4
• Ronald Eugene Kinard, Jack Bard Haney — Region 4
• Victor Mercado — Region 5
• Cardington Yutaka Technologies, Inc., Muhammed Razavi, James Carroll — Region 5
• Pemco Services, Inc. — Region 6
• Team Industrial Services, Inc. — Region 6
• BP Exploration and Production, Inc., Robert M. Kaluza, Donald J. Vidrine, David I.
Rainey — Region 6
• Chamness Technology, Inc., Dennis Simmons — Region 7
• James L. Christian, Smith Chrome Plating, Inc. — Region 10
EPA Bulletin November 2012 1
-------
DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 2
Martin S. Kimber
CAA/Use of mercury as a chemi-
cal weapon
Region 3
Professional Mobile Cleaning, Inc.
The Refuse Act/Failure to pre-
vent and reclaim vehicle wash
wastewater effluent
Region 4
Tennie White
CWA/Falsifying industrial waste-
water records and obstructing
criminal investigation
Region 4
William R. "Rusty" Miller
CW A/Illegal filling of protected
wetlands
Region 4
Ronald Eugene Kinard, Jack Bard
Haney
CAA/Conducting illegal vehicle
emission inspections
Region 5
Victor Mercado
CW A/Conspiracy related to pub-
lic corruption trial in Detroit
EPA Bulletin November 2012 2
-------
DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Cardington Yutaka Technologies,
Region 5
Inc., Muhammed Razavi, James
Carroll
CWA/Making false statements re-
garding the discharge of industrial
wastewater to the village's waste-
water treatment system
Region 6
Pemco Services, Inc.
CWA/Illegal application of drilling
muds
Region 6
Team Industrial Services, Inc.
CAA/Negligent release of hazard-
ous pollutants
Region 6
BP Exploration and Production,
Inc., Robert M. Kaluza, Donald J.
Vidrine, David I. Rainey
CWA, Migratory Bird Treaty Act,
Manslaughter, Obstruction of Con-
gress, False Statements/All related
to the 2010 Deepwater Horizon dis-
aster
Region 7
Chamness Technology, Inc.,
Dennis Simmons
CWA/Negligent discharge of a pol-
lutant without a permit
Region 10
James L. Christian, Smith
Chrome Plating, Inc.
CW A/Improper reporting in
monthly discharge monitoring re-
ports
EPA Bulletin November 2012 3
-------
Quick Links:
• p. 4-7
• p. 8 - 11
• p. 12
(Back to Quick Links)
Texas Company Fined for Illegal Application of Drilling Muds - On November 20, 2012, PEMCO
SERVICES, INC., was convicted in Travis County district court of Texas Water Code violations relating
to the operation of an oil and gas waste land farming site in Jefferson County, Texas, and was ordered to
pay fines totaling $1,350,000. The company has also agreed to pay $14,534 in restitution for lab analysis
by the Texas Parks and Wildlife Department Laboratory. In addition, the company also spent $1.1 million
to clean up the facility, which is now closed. The charges stemmed from a criminal investigation involv-
ing the application of more than 1.3 million barrels of used drilling muds onto the land farm facility in vio-
lation of its permit. The drilling wastes contained elevated amounts of drilling mud constituents that
threatened to cause and caused pollution in and around the facility.
The conviction is a culmination of the collaborative work of the Texas Environmental Task Force,
which includes the Texas Parks and Wildlife Department Environmental Crimes Unit, the Texas Parks and
Wildlife Department Laboratory, the Texas Commission on Environmental Quality Environmental Crimes
Unit, EPA's Criminal Investigation Division and the Travis County District Attorney's Office's Environ-
mental Protection Unit.
Back to Top
Washington Man and Chrome Plating Company Sentenced for CWA Violations - On November 14,
2012, JAMES L. CHRISTIAN, of Walla Walla, Washington, and SMITH CHROME PLATING, INC ,
an incorporated business located in Walla Walla, were sentenced in federal district court for the Eastern
I District of Washington for criminal violations of the Clean Wa-
ter Act related to violations of a state waste discharge permit
issued by the Washington Department of Ecology under the
Clean Water Act to Smith Chrome Plating, Inc. Christian was
given a five-year term of probation, subject to a four-month
term of home confinement and 200 hours of community service.
Smith Chrome Plating, Inc., was given a five-year term of proba-
| tion and was fined $15,000 to be paid in installments.
From December 2009 through April 2010, Christian
Accumulated wastewater at Smith Chrome stated on monthly discharge monitoring reports that the company
Plating that was being discharged to the sewer had "zero discharge" at its facility for those months. Christian
from the hose shown above , ,, ,, , ,. , ... , • TT
signed the monthly discharge monitoring reports at issue. He
subsequently admitted, however, that the reports during December 2009 through April 2010 where he indi-
cated "zero discharge" were false, that discharges were in fact made during those months, and that Smith
Chrome and Christian failed to monitor those discharges, failed to sample, and failed to keep any records
or report the discharges, all in violation of Smith Chrome's State Waste Discharge Permit.
Investigation of the case was conducted by EPA's Criminal Investigation Division. The case was
prosecuted by James A. Goeke, an Assistant U.S. Attorney for the Eastern District of Washington.
Back to Top
F.PA Riillftin Nnvftnhfr 2ft72 d
-------
Two North Carolina Men Sentenced for Conducting Illegal Vehicle Emission Inspections - On No-
vember 26, 2012, RONALD EUGENE KINARD, of Charlotte, North Carolina, was sentenced in federal
district court for the Western District of North Carolina for conspiring to violate the Clean Air Act by con-
ducting false vehicle emission inspections. He was given a six month jail sentence and two years of super-
vised release, during which he will serve an additional six months of home confinement. He was also or-
dered to pay a $10,000 fine and to perform 50 hours of community service. His conspirator, JACK BARD
HANEY, also of Charlotte, had been sentenced on November 14, 2012, to serve six months in prison and
one year of supervised release, during which he will serve an additional six months of home detention.
Both Kinard and Haney are also prohibited from conducting vehicle inspections in the future.
According to filed documents and related court proceedings, at the time of their criminal conduct,
Kinard was the owner-operator of Autoworks, a Charlotte vehicle repair shop, and Haney was one of his
employees. Both were licensed by the state of North Carolina to conduct onboard diagnostic (OBD) in-
spections to test federally mandate vehicle emissions. Court records show that they used surrogate vehicles
to falsely pass vehicles that would have failed emissions inspections, an illegal activity known as "clean
scanning." Court documents indicate that from about January 2010 through August 2011, Kinard con-
ducted more than 1,180 false vehicle inspections, and Haney conducted more than 100 false inspections.
In exchange for the false passing results, the two men typically charged more than the standard inspection
fee, sometimes as high as $100 per vehicle.
The case was investigated by EPA's Criminal Investigation Division, the North Carolina State Bu-
reau of Investigation, 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.
Back to Top
New Jersey Based Commercial Vehicle Cleaning Company Sentenced For Violating Refuse Act-
On November 29, 2012, PROFESSIONAL MOBILE CLEANING, INC., (PMC), a Fairfield, New
Jersey-based mobile truck washing business, pleaded guilty in federal court in Pittsburgh and was sen-
tenced to pay $500,000 in restitution, fines, and community service payments on its conviction of violat-
ing The Refuse Act.
According to information presented to the court, PMC worked via contract with the U.S. Postal
Service to wash commercial vehicles in western Pennsylvania and to isolate, collect, store, and eliminate
all wash water involved in the cleaning process. From June 20, 2007 to
June 20, 2010, PMC failed to prevent discharge of and to reclaim waste-
water effluent resulting from these vehicle washing services. The waste-
water entered into several tributaries that fed the Monongahela River.
Under a plea agreement with the U.S. Attorney's Office, PMC
agreed to pay $300,000 in restitution to the U.S. Postal Service and a
$9,000 criminal fine. The plea agreement also required PMC to pay
$191,000 to the Pennsylvania Fish and Boat Commission (PFBC) for a
community service project to address water quality issues such as total
dissolved solids in the Monongahela River. This payment will be depos-
ited into a restricted revenue account within the PFBC Fish Fund.
The case was investigated by EPA's Criminal Investigation Di-
vision and the U.S. Postal Inspection Service. It was prosecuted by As-
sistant U.S. Attorney Nelson P. Cohen.
Back to Top
Employees of PMC washing a com-
mercial vehicle
F.PA Riillftin Nnvftnhfr 2ft72
-------
Ohio Auto Parts Manufacturer and Two Former Managers Are Sentenced for Environmental
Crimes and False Statements - On November 28, 2012, CARDINGTON YUTAKA TECHNOLO-
GIES, INC. (CYT), an auto parts manufacturer located in Cardington, Ohio, and a wholly owned subsidi-
ary of Yutaka Giken Company, Limited based in Japan,
along with two of its former managers were sentenced in
federal district court for the Southern District of Ohio to pay
a fine of $1.2 million, pay restitution in the amount of
$115,000 to the village of Cardington, and make $400,000
in community service payments, also to the village for mak-
ing false statements regarding the discharge of industrial
wastewater to the village's wastewater treatment system.
The community service
funds will be used to repair,
| improve and renovate the
Tank containing "SteelGard," the substance dumped village's wastewater treat-
into the sanitary sewer ment plant The company
also will serve a term of probation of two years, and make several opera-
tional changes to ensure compliance with applicable state and federal wa-
ter pollution laws.
CYT was indicted on federal charges on June 29, 2011, as were
two former managers. CYT's former executive vice president, MUHAM-
MED RAZAVI, pleaded guilty to two counts of negligently violating the
Clean Water Act. Consistent with his plea agreement, Razavi was sen-
tenced to 90 days incarceration, followed by a term of one year of super-
vised release, and 208 hours of community service. Razavi was also or-
dered to pay a fine of $25,000. CYT's former maintenance manager,
JAMES CARROLL, pleaded guilty to one count of negligently violating
the Clean Water Act. In accordance with his plea agreement, Carroll was
sentenced to two years of probation, including 90 days of home confine-
ment, and is to complete 500 hours of community service. Carroll was
also ordered to pay a fine of $5,000.
According to documents filed with the court, between 1999 and
12008, CYT and its managers made false
statements to the Ohio EPA and the vil-
lage of Cardington regarding the dis-
charge of industrial wastewater in the
form of leak test fluid and parts washer
water from the CYT facility to the vil-
lage of Cardington's Publicly Owned
Treatment Works.
The case was investigated by
Cut illicit discharge pipe
Cut illicit discharge pipe entering
the floor drain
Bypass piping at CYT
EPA's Criminal Investigation Division, the Ohio Environmental Protec-
tion Agency-Office of Special Investigations, and the Ohio Bureau of
Criminal Identification and Investigation. It is being prosecuted by Rich-
ard J. Powers, trial attorney with the Justice Department's Environ-
mental Crimes Section, and Assistant U.S. Attorney J. Michael Marous.
Back to Top
EPA Bulletin November 2012 6
-------
Texas Refinery Admits of Negligently Releasing Hazardous Air Pollutants — On November 15, 2012,
TEAM INDUSTRIAL SERVICES, INC. (Team), which provided leak detection and repair services at a
refinery near Borger, Texas, was sentenced in federal
district court for the Northern District of Texas to pay
a $200,000 criminal fine and ordered to serve five
years probation. They were also mandated to imple-
ment and maintain a detailed environmental compli-
ance plan that specifically addresses its leak detection
and reporting activities to achieve appropriate compli-
ance with the Clean Air Act's leak detection and re-
pair regulations during their probationary period. In July 2012, Team admitted that it negligently released
hazardous pollutants into the ambient air, placing people in danger of death or serious bodily injury. Team
employees at the refinery knowingly failed to follow required protocols while conducting emissions moni-
toring of certain refinery components. They also manipulated testing data to falsely represent emissions
monitoring events that were not performed. A Team supervisor knew the emissions monitoring data was
false yet, along with another employee, they altered the emissions monitoring database to falsely represent
emissions monitoring events to EPA and the Texas Commission on Environmental Quality.
Back to Top
EPA Bulletin November 2012 7
-------
Plea Agreements (Back to Quick IMS)
New York Man Pleads Guilty to Using Mercury As Chemical Weapon - On November 29, 2012,
MARTIN S. KIMBER, of Ruby, New York, pled guilty in federal district court for the Northern District
of New York to using a toxic chemical, mercury, as a weapon and tampering with consumer products.
Kimber admitted that on four occasions he spread mercury, a potentially fatal neurotoxin, throughout vari-
ous areas of the Albany Medical Center in ways that could lead to inhalation or absorption of the mercury
to retaliate for what he thought were unfair hospital bills.
Mercury is a well-documented hazardous substance and Kimber, having been a licensed pharmacist
for thirty-six years, well understood its dangers and that the heating of mercury, including the placing of
mercury on or in toasters and on or around heated food, greatly increased the likelihood that mercury
would vaporize into the air and be inhaled by individuals consuming such food or using or being near such
heating devices.
As part of his plea agreement, Kimber agreed to abandon his computer and consented to the entry
of an order directing him to pay restitution to the Albany Medical Center in the amount of $200,451; pay
restitution to the United States for any expenses incurred incident to the seizure, storage, handling, trans-
portation, and destruction of any property seized in connection with an investigation of his use of mercury
as a chemical weapon; pay restitution to any other victims; forfeit a residence in Ruby, New York; and for-
feit his 2007 Pontiac Soltice.
The case was investigated by EPA's Criminal Investigation Division, the FBI, and the Food &
Drug Administration's Office of Criminal Investigations. Assistance was provided by the police depart-
ments of the towns of Albany and Ulster. It is being prosecuted by Assistant U.S. Attorney Craig Bene-
dict.
Back to Top
Iowa Company Pleads Guilty to Negligent Pollutant Discharge into U.S. Waters - On October 26,
2012, CHAMNESS TECHNOLOGY, INC., plead guilty in federal district court for the Southern District
of Iowa to negligent discharge of a pollutant from a point source
into a water of the United States without a permit. It faces a
maximum sentence of up to five years probation and a $200,000
fine. An investigation revealed that leachate water and storm
water runoff had been discharged from an umbilical hose at the
company's compost facility located outside Eddyville, Iowa.
Dennis Simmons, an employee of the company caused the dis-
charge by failing to attach the umbilical hose and ensure that it
was connected to a I
CTI-Eddyvillefacility gpray irrigator at the|
facility. The leachate water and storm water runoff entered the
Palestine Creek and flowed to the Des Moines River, but the dis-
charge was not permitted. On November 7, 2012, DENNIS
SIMMONS pled guilty to a felony CWA count. The sentencing
date for CTI has been scheduled for January 29, 2013 and Sim-
mons is scheduled for February 8, 2013.
The case was investigated by EPA's Criminal Investiga-
tion Division and the Iowa Division of Natural Resources. It
was prosecuted by the U.S. Attorney's office for the Southern Irrigation hose discharging leachate
District Of Iowa. wstewate,
Back tO Top EPA Buuetin November 2012 8
-------
"Baby Creek" combined sewer overflow structure which was re-
quired to be re-constructed pursuant to the NPDES permit and the
federal consent decree with EPA
Former Detroit Water Department Director Pleads Guilty in Corruption Trial - On November 5,
2012, VICTOR MERCADO, of San Antonio, Texas, former director of the city of Detroit Water and
Sewerage Department pleaded guilty in federal district court for the Eastern District of Michigan to a su-
~ | perseding information charging him with one
count of conspiracy related to the ongoing pub-
*| lie corruption trial of former Mayor Kwame
Kilpatrick, his father Bernard Kilpatrick, and
long time friend Bobby Ferguson. According
to the terms of the plea agreement, the sen-
tence will not exceed eighteen months, due to
mitigating circumstances. In particular,
Mercado took the actions set forth above be-
cause of duress, under circumstances not
amounting to a complete defense.
According to the superseding information, from June 2002 to June 2008, Mercado served as direc-
tor of the Detroit Water and Sewerage Department (DWSD). In this capacity, he was responsible for ad-
ministering over $2 billion in contracts with private companies and reported directly to the mayor of De-
troit, Kwame M. Kilpatrick. From January 2002 to January 2006, Kilpatrick served as special administrator
over the DWSD. That designation, arising from a federal consent decree resolving a lawsuit alleging fed-
eral environmental violations, gave Kilpatrick authority to award DWSD contracts directly with outside
parties, bypassing city procurement procedures, and also gave Kilpatrick responsibility over the operation
of DWSD's wastewater treatment plant to ensure compliance with environmental standards.
As stated in the plea documents, |
Kilpatrick used his position as mayor of De-
troit and special administrator of DWSD to
pressure city contractors-who submitted pro-
posals to or were awarded contracts by
DWSD—to give subcontracts or payments
obtained under those contracts to Bobby W.
Ferguson, or risk having the contracts de-
layed, awarded to competitors, or canceled,
resulting in economic harm. Invoking and
otherwise exploiting his well-known affilia-
tion with former Mayor Kilpatrick, Ferguson Oakw°°d> an^er combined sewer authority which was also required
J ' - by permit and decree. Mercado pled guilty to conspiring to rig the bid
pressured city contractors to hire or pay him for this facility ifthe prime contractor agreed to hire Bobby Fergu-
for DWSD contracts son's company, Ferguson Enterprises Inc.
Mercado—at the direction of Kilpatrick and his associates—took steps to help Ferguson receive a
large portion of contracts, subcontracts or payments for DWSD business. These steps included influencing
the procurement process to Ferguson's advantage, as well as directing a bidder to include Ferguson on a
DWSD contract in order to receive favorable consideration on the bid. Mercado took these steps as a result
of regular and consistent pressure from former Mayor Kilpatrick and his staff to help Ferguson obtain
DWSD business regardless of procurement policies, rules, and regulations. Mercado tried to avoid this
pressure, but from time to time he influenced the process to Ferguson's benefit in order to pacify and pla-
cate the former Mayor.
The case was investigated by EPA's Criminal Investigation Division, the Detroit field office of the
FBI, and the Internal Revenue Service's Criminal Investigation Division. It was prosecuted by U.S. Attor-
ney Barbara L. McQuade.
Back to Top
EPA Bulletin November 2012 9
-------
BP Agrees to Pay Record $4 Billion in Criminal Fines and Penalties; Its Two Highest Ranking Su-
pervisors on Deepwater Horizon Rig Charged with Manslaughter and Former Senior Executive
Charged with Obstruction of Congress -- On November 15, 2012, BP EXPLORATION AND PRO-
DUCTION, INC. (BP) agreed to plead guilty to felony manslaughter, environmental crimes, and obstruc-
tion of Congress and pay a record $4 billion in criminal fines and penalties for its conduct leading to the
2010 Deepwater Horizon disaster that killed 11 people and caused the largest environmental disaster in
U.S. history. The 14-count information, filed in U.S. District Court in the Eastern District of Louisiana,
charges BP with 11 counts of felony manslaughter, one count of felony obstruction of Congress, and viola-
tions of the Clean Water and Migratory Bird Treaty Acts. The $4 billion in criminal fines and penalties is
the largest criminal resolution in United States history. The plea is subject to the Court's approval.
In addition to the resolution of
charges against BP, ROBERT M.
KALUZA and DONALD J. VIDRINE
the highest-ranking BP supervisors on-
board the Deepwater Horizon on April 20,
2010 - are alleged to have engaged in neg-
ligent and grossly negligent conduct in a 23
-count indictment charging violations of
the federal involuntary manslaughter and
seaman's manslaughter statutes and the
Clean Water Act. DAVID I. RAINEY - a
former BP executive who served as a Dep-
uty Incident Commander and BP's second-
highest ranking representative at Unified
Command during the spill response - is
charged with obstruction of Congress and making false statements to law enforcement officials. A grand
jury in the Eastern District of Louisiana returned the indictments against Kaluza, Vidrine, and Rainey.
On April 20, 2010, while stationed at the Macondo well site in the Gulf of Mexico, the Deepwater
Horizon rig experienced an uncontrolled blowout and related explosions. In agreeing to plead guilty, BP
has admitted that the two highest-ranking BP supervisors onboard the Deepwater Horizon, known as BP's
"Well Site Leaders" or "company men," negligently caused the deaths of 11 men and the resulting oil spill.
The information details that, on the evening of April 20, the two supervisors, Kaluza and Vidrine, observed
clear indications that the Macondo well was not secure and that oil and gas were flowing into the well.
Despite this, BP's well site leaders chose not to take obvious and appropriate steps to prevent the blowout.
As a result of their conduct, control of the Macondo well was lost, resulting in catastrophe.
Kaluza and Vidrine each are charged with 11 felony counts of seaman's manslaughter, 11 felony
counts of involuntary manslaughter and one violation of the Clean Water Act. If convicted, Kaluza and
Vidrine each face a maximum potential penalty often years in prison on each seaman's manslaughter
count, up to eight years in prison on each involuntary manslaughter count, and up to a year in prison on the
Clean Water Act count.
The information charging BP further details that the company, through senior executive Rainey,
obstructed an inquiry by the U.S. Congress into the amount of oil being discharged into the Gulf while the
spill was ongoing. As part of its plea agreement, BP has admitted that, through Rainey, it withheld docu-
ments and provided false and misleading information in response to the U.S. House of Representatives'
request for flow-rate information. Among other things, BP admitted that Rainey manipulated internal esti-
mates to understate the amount of oil flowing from the well and withheld data that contradicted BP's pub-
lic estimate of 5,000 barrels of oil per day. CONTINUED ON NEXT PAGE
EPA Bulletin November 2012 10
-------
BP Agrees to Pay Record $4 Billion in Criminal Fines and Penalties; CONTINUED -
BP has also admitted that, at the same time Rainey was preparing his manipulated estimates, BP's
internal engineering response teams were using sophisticated methods that generated significantly higher
estimates. The Flow Rate Technical Group, consisting of government and independent scientists, later con-
cluded that more than 60,000 barrels per day were leaking into the Gulf during the relevant time, contrary
to BP's representations to Congress.
Rainey is charged with one count of obstruction of Congress, and one count of making false state-
ments to law enforcement officials. If convicted, Rainey faces a maximum potential penalty of five years
in prison on each count.
The criminal resolution is structured such that more than half of the proceeds will directly benefit
the Gulf region. Pursuant to an order presented to the Court, approximately $2.4 billion of the $4 billion
criminal recovery is dedicated to acquiring, restoring, preserving and conserving - in consultation with ap-
propriate state and other resource managers - the marine and coastal environments, ecosystems and bird
and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill.
This portion of the criminal recovery will also be directed to significant barrier island restoration and/or
river diversion off the coast of Louisiana to further benefit and improve coastal wetlands affected by the oil
spill. An additional $350 million will be used to fund improved oil spill prevention and response efforts in
the Gulf through research, development, education, and training.
In addition to the historic
$4 billion in criminal fines and
penalties, BP has agreed as part of
its guilty plea to retain a process
safety and risk management moni-
tor and an independent auditor,
who will oversee BP's process
safety, risk management and drill-
ing equipment maintenance with
respect to deepwater drilling in the
Gulf of Mexico. BP is also re-
quired to retain an ethics monitor
to improve BP's code of conduct ^
for the purpose of seeking to en-
sure BP's future candor with the
United States government.
The United States continues to pursue a civil action to recover civil penalties under the Clean Water
Act and hold BP and other defendants liable for natural resource damages under the Oil Pollution Act. A
trial on liability matters is scheduled to begin in February 2013, during which the United States will seek to
establish that the spill was caused by BP's gross negligence. BP could face billions of dollars of addi-
tional exposure in the civil lawsuit.
The guilty plea agreement and charges announced on November 15 are part of the ongoing criminal
investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill.
The task force includes prosecutors from the Criminal Division and Environment and Natural Resources
Division of the Department of Justice; the U.S. Attorney's Office for the Eastern District of Louisiana, as
well as other U.S. Attorneys' Offices; and investigating agents from the FBI, Environmental Protection
Agency, Department of Interior, National Oceanic and Atmospheric Administration Office of Law En-
forcement, U.S. Coast Guard, U.S. Fish and Wildlife Service, and the Louisiana Department of Environ-
mental Quality.
Back to Top
EPA Bulletin November 2012 11
-------
Indictments/Informations (Back to Quick Links)
Mississippi Laboratory Operator Charged with Falsifying Records on Industrial Wastewater - On
November 7, 2012, TENNIE WHITE, owner, operator and manager of Mississippi Environmental Ana-
lytical Laboratories, Inc. was charged in federal district court for the Southern District of Mississippi with
falsification of records and obstructing a federal criminal investigation. According to the indictment, White
was hired to perform laboratory testing of a manufacturer's industrial process wastewater samples and then
to use those results to complete monthly discharge monitoring reports for submission to the Mississippi
Department of Environmental Quality. The indictment alleges that from February to August 2009 White
created three discharge monitoring reports (DMRs) that falsely represented that laboratory testing had been
performed on samples when, in fact, such testing had not been done. The indictment further alleges that
White created a fictitious laboratory report and presented it to her client for use in preparing another DMR.
The indictment further alleges that White made false statements to a federal agent during a subsequent
criminal investigation. The false statements charges carry a maximum sentence of five years in prison and
a $250,000 fine per count. The obstructing proceedings charge carries a maximum sentence of twenty
years in prison and a $250,000 fine. An indictment is not a finding of guilt, and a defendant is presumed
innocent unless and until proven guilty in a court of law.
The case is being prosecuted by Trial Attorney Richard J. Powers of the Environmental Crimes
Section of the Justice Department's Environment and Natural Resources Division, and Assistant U.S. At-
torney Gaine Cleveland of the U.S. Attorney's Office for the Southern District of Mississippi.
Back to Top
Alabama Real Estate Developer Charged With Illegally Filling Protected Mississippi Wetlands - On
November 9, 2012, WILLIAM R. "RUSTY" MILLER, a real estate developer from Fairhope, Alabama,
was indicted by a federal grand jury in Jackson, Mississippi., for the unpermitted filling of wetlands near
Bay St. Louis, Mississippi, in violation of the Clean Water Act.
The indictment alleges that during 2007, Miller caused the excavation and filling of wetlands on a
1,710 acre parcel of undeveloped property in Hancock County, west of the intersection of Route 603 and
Interstate 10. The indictment states that Miller was a part-owner of corporations that purchased and in-
tended to develop the land. It alleges that in 2001 when Miller and his companies purchased the property,
he was informed by a wetland expert that as much as 80 percent of the land was federally protected wet-
land connected by streams and bayous leading to the Gulf of Mexico and as such could not be developed
without a permit from the U.S. Army Corps of Engineers. Such permits typically require that developers
protect and preserve other wetlands to compensate for those they are permitted to fill and destroy. In spite
of additional notice he had received of the prohibition against filling and draining wetland without authori-
zation, the indictment alleges that Miller hired an excavation contractor to trench, drain, and fill large por-
tions of the property to lower the water table and thus to destroy the wetland that would otherwise be an
impediment to commercial development. The indictment charges that Miller knowingly ditched, drained
and filled wetland at 10 locations on the Hancock County property without having obtained a permit from
the Army Corps of Engineers. It also charges him with the unauthorized discharge of silt, sand, vegetation,
debris, and other material into and from canals and ditches on the Hancock County property into tributaries
of Bayou Marone, a tributary of the Jourdan River.
It is a felony under the Clean Water Act for any person knowingly to discharge pollutants into wa-
ters of the United States without a permit. Any person convicted of this offense is subject to imprisonment
of up to three years and a penalty of not more than $250,000.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until
proven guilty in a court of law.
Back to TOP EPAPub.310-N-12-011
EPA Bulletin November 2012 12
------- |