United State
&EPA
Environmental Crimes Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
February 2013
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:
Rodney R. Hailey Region 3
Werner Transportation Services, Inc. Region 4
Angel Dario Rodrignez Nunez Region 4
House of Raeford Farms, Inc. Region 4
Robert D. Armstrong & RCA Oil and Gas LLC Region 5
Ben Lupo Region 5
Temple Inland Region 6
Transocean Deepwater, Inc. Region 6
Martin Glaves Kuna Region 10
Douglas Greiner, Bradley Eberhart Region 10
EPA Bulletin February 2013 1
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DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 3
Rodney R. Hailey
CAA/Selling fraudulent renewable
fuel credits and obstruction of jus-
tice
Region 4
Angel Dario Rodrignez Nunez
CAA/Falsely passing vehicle in-
spections
Region 4
Werner Transportation Services, Inc.
CAA/Illegal chemical leak
Region 4
House of Raeford Farms, Inc.
CWA/Disposing untreated waste
water into city treatment system
without notifying city officials
Region 5
Robert D. Armstrong & RCA Oil and
Gas LLC
CW A/Illegal wastewater discharge
EPA Bulletin February 2013 2
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DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 5
Ben Lupo
CWA/Discharging fracking waste
into river tributary
Region 6
Transocean Deepwater, Inc.
CW A/Illegal conduct leading to
2010 Deepwater Horizon disaster
Region 6
Temple Inland
CWA & Refuge Act/Negligent pol-
lutant discharge leading to fish kill
Region 10
Martin Glaves Kuna
RRP Rule/Lying about ability to test
for lead-based paint
Region 10
Douglas Greiner, Bradley Eberhart
CAA/Violations of work practice
standards involving handling of as-
bestos pipe
EPA Bulletin February 2013 3
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Quick Links:
p. 4-7
p. 8 - 11
p. 12 - 13
Sentencings (Back to Quick Links)
North Carolina Emissions Inspector Sentenced for Falsely Passing Vehicle Inspections ~ On February
20, 2013, ANGEL DARIO RODRIGUEZ NUNEZ, of Durham, North Carolina, was sentenced in federal
district court for the Eastern District of North Carolina to five years of probation with a special condition of
six months house arrest and a $500 fine. The sentence reflected a reduction for Nunez' cooperation in the
on-going investigation. A criminal information was filed on March 6, 2012, charging Nunez with conspir-
ing to violate the Clean Air Act and making a material false statement, representation, or certification. On
April 9, 2012, Nunez pled guilty to the charges.
According to the criminal information, Nunez worked at both Express Auto Sales and Services and
Car Care Express Auto Sales and Services, both in Durham, as a licensed North Carolina emissions inspec-
tor. From May 2009 to July 2010, Nunez conspired
with others to pass vehicles that would normally
have failed the emissions inspection in exchange for
$150 to $225 per car.
The information further alleges that Nunez
I and his co-conspirators would enter the vehicle
identification number either manually or by scan-
ping. A surrogate vehicle, usually one manufac-
tured between 1996 and 1999 that would not gener-
ate a vehicle identification number when connected
to the analyzer, would be selected. Using the surro-
gate vehicle, an emissions report would be gener-
ated for the customer's vehicle. During this period
817 vehicles passed the false inspection. Of those
817, Nunez falsely tested 353.
Emissions inspection reports are electronically transferred to the North Carolina Office of Informa-
tion and Technology Services in Raleigh, North Carolina. The U.S. EPA requires the state to conduct vehi-
cle emissions testing in certain areas because the areas exceed national standards for carbon monoxide and
ozone.
Investigation of this case was conducted by the EPA Criminal Investigation Division; the North
Carolina State Bureau of Investigations; and the North Carolina Department of Motor Vehicles, License and
Theft Bureau. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case.
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Express Auto Sales and Service located in Durham, NC
EPA Bulletin February 2013 4
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Transocean Pleads Guilty, Is Sentenced to Pay $400 Million in Criminal Penalties for Criminal Con-
duct Leading to Deeywater Horizon Disaster On February 14, 2013, TRANSOCEAN DEEPWA-
TER, INC. pleaded guilty in federal district court for the Eastern District of Louisiana to a violation of the
Clean Water Act for its illegal conduct leading to the 2010 Deepwater Horizon disaster, and was sentenced
to pay $400 million in criminal fines and penalties. In total, the amount of fines and other criminal penal-
ties imposed on Transocean are the second-largest environmental crime recovery in U.S. history - follow-
ing the historic $4 billion criminal sentence imposed on BP
Exploration and Production Inc. in connection with the same
disaster. The criminal payments will be directed to the Na-
tional Academy of Sciences and National Fish and Wildlife
Foundation to help remedy the harm to the Gulf of Mexico
caused by Transocean's actions. Transocean was also sen-
tenced, according to the plea agreement, to five years of proba-
tion - the maximum term of probation permitted by law.
Transocean pleaded guilty to an information, previously filed in federal court in New Orleans,
charging the company with violating the CWA. During the guilty plea proceeding, Transocean admitted
that members of its crew onboard the Deepwater Horizon, acting at the direction of BP's well site leaders,
known as "company men," were negligent in failing to investigate fully clear indications that the Macondo
well was not secure and that oil and gas were flowing into the well.
The criminal resolution is structured to directly benefit the Gulf region. Under the order entered by
the court pursuant to the plea agreement, $150 million of the $400 million criminal recovery is dedicated to
acquiring, restoring, preserving and conserving - in consultation with appropriate 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 re-
covery 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 spill. An additional $150 million
will be used to fund improved oil spill prevention and response efforts in the Gulf through research, devel-
opment, education and training.
A separate proposed civil consent decree, which resolves the United States' civil CWA penalty
claims, imposes a record $1 billion civil Clean Water Act penalty, and requires significant measures to im-
prove performance and prevent recurrence, is pending. The charges and allegations pending against indi-
viduals in related cases are merely accusations, and those individuals are considered innocent unless and
until proven guilty.
The guilty plea and sentencing announced on February 14 are part of the ongoing criminal investi-
gation 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 the Environment and Natural Resources Divi-
sion 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, Criminal Investigative Division; Environmental Protection Agency, Office of Inspector General;
Department of Interior, Office of Inspector General; National Oceanic and Atmospheric Administration,
Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Depart-
ment of Environmental Quality.
The case was prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy Di-
rectors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen,
Colin Black and Rohan Virginkar.
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EPA Bulletin February 2013 5
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Maryland 'Clean Green Fuel' Owner of Sentenced to Over 12 Years in Prison for Scheme to Vio-
late EPA Regulations and Sell $9 Million in Fraudulent Renewable Fuel Credits - On February 22,
2013, RODNEY R. HAILEY, of Perry Hall, Maryland, was sentenced in federal district court for the
District of Maryland to 151 months in prison followed by three years of supervised release in connection
with a scheme in which he sold $9 million in renewable fuel credits which he falsely claimed were pro-
duced by his company, Clean Green Fuel, LLC. Hailey's sentence was enhanced when the judge learned
that he obstructed justice by concealing, selling and spending assets that were protected by court order.
Hailey was also ordered to pay restitution of $42,196,089 to over 20 companies, and forfeit $9.1 million
in proceeds of the fraud including cars, jewelry, his home and bank accounts already seized by the gov-
ernment in partial satisfaction of such $9.1 million judgment. Hailey was convicted on June 25, 2012, of
eight counts of wire fraud, 32 counts of money laundering and two counts of violating the Clean Air Act.
He has been detained since the guilty verdict.
According to evidence
presented at the six day trial,
Hailey owned Clean Green Fuel,
LLC, located in the Baltimore
area. Hailey registered Clean
Green Fuel with the EPA as a
producer of bio-diesel fuel, a
motor vehicle fuel derived from
renewable resources. In order to
encourage the production of re-
newable fuel and lessen the na-
tion's dependence on foreign
oil, all oil companies that mar-
ket petroleum in the U.S. are
Items purchased by Hailey from the proceeds of the wire fraud scheme which were
seized by the government.
required to produce a given quantity of renewable fuel or to purchase credits, called renewable identifica-
tion numbers (RINs), from producers of renewable fuels to satisfy their renewable fuel requirements.
Between March 2009 and December 2010, Hailey engaged in a massive fraud scheme, selling over
35 million RINs (representing 23 million gallons of bio-diesel fuel) to brokers and oil companies, when in
fact Clean Green Fuel had produced no fuel at all and Hailey did not have a facility capable of producing
bio-diesel fuel.
Federal law enforcement agents investigated the scheme after a Baltimore County police detective
working with Maryland's federal financial crimes task force received a report about a large number of
luxury cars parked in front of Hailey's house. The financial crimes task force contacted the EPA's Crimi-
nal Investigation Division and initiated a criminal investigation.
Two civil inspectors from EPA's Air Enforcement Division visited Clean Green's headquarters on
July 22, 2010, to inspect Hailey's bio-diesel production facility, in response to a complaint alleging that
Clean Green had been selling false RINs. Hailey was not able to provide an exact location for the bio-
diesel fuel production facility, nor any records to support claims that Clean Green Fuel had produced bio-
diesel fuel. When asked to explain his method of production, Hailey falsely stated that he paid employees
and contractors to recover waste vegetable oil from 2,700 restaurants in the "Delmarva" area and bring it
to his production facility where he converted it to bio-diesel fuel. Hailey claimed that only the drivers who
picked up the oil knew the names of the restaurants, and Hailey could not provide the names of the driv-
ers.
Hailey made over $9.1 million from selling the false RINs. The loss to the traders and major en-
EPA Bulletin February 2013 6
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ergy companies who purchased Hailey's false RINs is over $40 million, but the loss also extends to small
bio-diesel companies which, as a result of Hailey's scheme, were unable to sell their RINs and have been
forced out of business.
Hailey used the proceeds of the scheme to purchase luxury vehicles, including BMWs, Ferraris,
Bentleys, a Mercedes Benz, a Rolls Royce Phantom, a Lamborghini, a Maserati and others, as well as real
estate and more than $80,000 in diamond jewelry. In all of these transactions, Hailey generally used cash or
checks drawn on accounts he controlled to make the purchase, including a check for $645,330.15 to buy his
home in Perry Hall.
The case was investigated by the Maryland Financial Crimes Task Force which included EPA's Crimi-
nal Investigation Division, the U.S. Marshals Service, the Baltimore County Police Department and IRS -
Criminal Investigation; the U.S. Postal Inspection Service, and EPA Office of Inspector General - Office of
Investigations. It was prosecuted by Assistant U. S. Attorneys Tonya N. Kelly and Stefan Cassella.
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North Carolina Poultry Processing Plant Sentenced for Knowing Violations of Clean Water Act
On February 26, 2013, HOUSE OF RAEFORD
FARMS, INC. was sentenced to pay $150,000
fine, serve 2 years probation, and pay a $4000
special assessment for knowingly violating the
Clean Water Act. In August 2012, a federal jury
found House of Raeford Farms, Inc., the owner
and operator of a poultry slaughtering and proc-
essing 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 wastewater treatment plant
without notifying city officials. The untreated
wastewater that was discharged directly to the city
plant was contaminated with waste from process-
ing operations, including blood, grease and body
parts from slaughtered turkeys. A House of Rae-
ford former employee admitted that the facility
would continue to slaughter and process turkeys
despite being warned that the unauthorized by-
passes had an adverse impact on the city's waste-
water treatment plant. The city plant is responsi-
ble for treating industrial, commercial and resi-
dential wastewater before it was discharged to
Rockfish Creek in Hoke County.
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teiiw
W-':|:!:jV;*
The bar screen at the City of Raeford's POTW contaminated with
turkey parts / turkey solids.
EPA Bulletin February 2013
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Plea Agreements (Back to Quick Links)
Texas-Located Company Pleads Guilty to Violations that Led to Large Fish Kill On February 6,
2013, TIN, INC., d/b/a/ TEMPLE INLAND, a Delaware Corporation located in Austin, Texas, pled guilty
in federal district court for the Eastern District of Louisiana to negligently causing the discharge of a pollut-
ant from its Bogalusa Facility into the Pearl River and to the negligent taking offish from the Bogue Chitto
National Wildlife Refuge. The violations relate to the Clean Water and Refuge Acts. On the CWA viola-
tion the maximum penalty is a fine of up to $200,000 and a term of probation up to five years. The maxi-
mum penalty for the Refuge Act violation is a fine of up to $10,000 per taking. Sentencing has been sched-
uled for May 1.
Court documents reflect that the
I charges stem from a release of a pollutant
into the Pearl River in August 2011 which
resulted in a large fish kill. Temple Inland
was required by the Louisiana Department
of Environmental Quality and the U.S. EPA
to possess and operate the Bogalusa Facility
pursuant to a National Pollutant Discharge
Elimination System permit. The permit im-
posed limitations on the amount of pollut-
ants that could be discharged from the Boga-
lusa Facility into the Pearl River, a navigable
I water of the United States. Additionally, the
permit required that Temple Inland maintain
a certain Biological Oxygen Demand (BOD)
level. BOD directly affects the amount of
Fish kill as a result of Temple Inland's negligent discharge of pollut-
ants into the Pearl River. Over 500,000 fish were killed.
dissolved oxygen in rivers and streams. The greater the BOD, the more rapidly oxygen is depleted in rivers
and streams. This means less oxygen is available to fish and higher forms of aquatic life. The consequences
of high BOD are the same as those for low dissolved oxygen, namely that aquatic organisms become
stressed, suffocate, and die.
In the early morning hours of August 9, 2011, and
again late on August 9, 2011, a piece of equipment called
an "evaporator" became clogged. As a result of the clogged
evaporator, an extremely excessive quantity of liquor over-
flowed from the boil-out tank. The liquor flowed out of the
containment area to the wastewater treatment plant and ef-
fluent pond, and ultimately into the Pearl River. The dis-
charge reached the Pearl River sometime beginning August
10, 2011, and continued to at least August 13, 2011, when
the facility was shut down. Temple Inland admitted that the
discharge of the liquor resulted in a fish-kill in the Pearl
River of over 500,000 fish due to high level of BOD. The
sample of the discharge collected on August 12, 2011, recorded the discharge as having a 5-day BOD of
116,000 Ibs/day exceeding the daily maximum permitted limit of 35,610 Ibs/day.
The Bogue Chitto National Wildlife Refuge is a federal wildlife refuge created in 1980, encompass-
ing 36,000 acres of the Pearl River Basin. It is located northeast of Slidell, Louisiana, in the Eastern Dis-
EPA Bulletin February 2013 8
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trict of Louisiana. The southern swampland is one of the least disturbed in the country. The Pearl River and
its tributaries run through the refuge. The National Wildlife Refuge System, comprises a national network of
lands and waters for the conservation, management and where appropriate, restoration of the fish, wildlife,
and plant resources and their habitats within the United States for the benefit of present and future genera-
tions of Americans. The National Wildlife Refuge System law enacted by Congress prohibited the distur-
bance, injury or destruction of property and the taking offish on a national wildlife reguge. Temple Inland
admitted that it negligently caused the taking of fish from the Bogue Chitto National Wildlife Refuge. On
August 15, 2011, black water, dead fish, and mussels were observed by the United States Fish and Wildlife
Service in waters on the Bogue Chitto National Wildlife Refuge. All fish observed were intact and included
recognizable species such as catfish, sturgeon and fresh water drum. Mussels were seen intact with their
shells floating in the water. Many were floating in the center of the water and others were grouped and
caught by branches in the water. The numbers of fresh dead fish and mussels seen in refuge waters within
the water body known as the Government Ditch equaled 1,000 or more each.
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Washington Man Pleads Guilty to Lying About His Ability to Conduct Lead Testing On February 8,
2013, MARTIN GLAVES KUNA, of Vancouver, Washington, plead guilty in federal district court for the
District of Oregon to one count of wire fraud for falsely telling customers that he was certified to perform
lead-based paint inspections and testing in homes, where children resided, when in fact, he was not properly
certified by state authorities to do so.
The information that Kuna plead
guilty to states that from May 2008 to
September 2012, Kuna advertised his ser-
vices to conduct lead-based paint inspec-
tions and testing and indicated to indi-
viduals via the internet and in person that
he was certified to do so. Kuna, however,
had not received the required certification
and training to inspect and test target
housing or child occupied facilities for
lead-based paint despite his representa-
tions that he had. Over the course of the
scheme, Kuna conducted more than ten
such inspections. In one instance where
Kuna performed lead-based paint inspec-1
tions and testing, children resided in the One of the homes Kuna performed lead-based paint inspection and where
home and Kuna provided the home owner children were exposed. Kuna was not certified to perform this work.
a false negative for the detection of lead. In January 2012, civil EPA investigators intervened in Kuna's
business activities and ordered him to stop lead-based paint inspections and testing. Despite EPA's order,
Kuna continued to advertise and perform lead based paint inspections and testing through September 2012.
The case was investigated by EPA's Criminal Investigation Division. It is being prosecuted by As-
sistant U.S. Attorney Michelle Holman Kerin.
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EPA Bulletin February 2013 9
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Ohio Company and Its Owner Plead Guilty to Illegal Wastewater Discharge - On February 11, 2013,
ROBERT D. ARMSTRONG, of New Matamoras, Ohio, pleaded guilty in federal district court for the
Southern District of Ohio to violating the Clean Water Act by causing wastewater from oil and gas wells to
flow into a tributary of the Little
Muskingum River in 2010. He also
pled guilty on behalf of his company,
RCA OIL AND GAS LLC, which
was charged with the same offense.
Armstrong is the owner and operator
of RCA Oil and Gas which provides
services for oil and gas wells in
southeast Ohio, including the services
related to the hydrofracturing or
"fracking" of oil and gas wells.
During June 2010, Armstrong
built a reservoir with an earthen wall
y., k.^yto hold water he intended to use in
the fracking process of a nearby well.
j The reservoir contained approxi-
Photograph taken from inside the reservoir towards the area that
Armstrong breached with his excavator.
mately 2.2 million gallons of fresh
water. Armstrong added thousands
of gallons of brine or wastewater
from the fracking process at two other oil and gas wells to the reservoir. As a result of the addition, all of
the liquid in the reservoir was classified as oil field wastewater.
On June 19, 2010, Armstrong used a backhoe to breach a wall of the reservoir, releasing the waste-
water into Rockcamp Run. The reser-
voir contained about 800,000 gallons of
wastewater at the time. Most of the wa-
ter flowed into Rockcamp Run. Analysis
of a sample of the wastewater from the
reservoir showed significant concentra-
tions of barium and sodium.
The case was investigated by
EPA's Criminal Investigation Division,
the Ohio EPA, the Ohio Department of
Natural Resources, and the Bureau of
Criminal Investigation's Environmental
Enforcement Unit in the Ohio Attorney
General's office. Assistant U.S. Attorney
Michael Marous is representing the gov-
ernment in this case.
Back to Ton Photograph taken from the backside of the reservoir. It shows the
breach and the slope of the terrain.
EPA Bulletin February 2013 10
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Two Southwest Idaho Men Plead Guilty to Violating the Clean Air Act -- On February 26, 2013,
DOUGLAS GREINER, of Boise, Idaho, and BRADLEY EBERHART, of Garden Valley, Idaho,
pleaded guilty in federal court to a one-count Information charging violations of Work Practice Standards
of the Clean Air Act, a fel-
ony. Both are scheduled to be
sentenced on June 3, 2013.
According to court docu-
ments, in 2009 and 2010, both
men were employees of Owy-
hee Construction Incorporated, a
Boise-based company which
contracted to renovate water
lines for the City of Oro-
fmo. Greiner was the project
superintendent, and Eberhard
was the on-site supervisor for
Riverside Water and Sewer Dis-
trict's Phase III project. During
re-construction of the Water
System Improvement Project an
old cement asbestos pipe was
encountered and improperly
handled.
Greiner pled guilty to a violation of the Clean Air Act's work practice standards and waste disposal
standards by knowingly causing another employee to pick up pieces of cement asbestos pipe from a dump
site without ensuring proper retrieval and disposal of the asbestos pipe.
Eberhard pleaded guilty to a violation of the Clean Air Act's work practice standards and waste dis-
posal standards by his own actions or the actions of employees he supervised, when he knowingly failed to
adequately wet the cement
asbestos pipe during cutting
or disjoining operations;
failed to place the asbestos
material in proper contain-
ers with clear labeling; and
failed to dispose of the as-
bestos material in a licensed
facility.
The case was investi-
gated by EPA's Criminal
Investigation Division.
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Superfund contractor wetting suspected asbestos containing material from the dump site.
Pieces of the old cement asbestos pipe that was improperly handled by
Greiner and Eberhart.
EPA Bulletin February 2013 11
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Indictments/Informations (Back to Quick Links)
Georgia Transportation Company Indicted for Chemical Leak that Killed One Person - On Febru-
ary 6, 2013, WERNER TRANSPORTATION SERVICES, INC, of Gainesville, Georgia, was in-
dicted in federal district court in Columbia, South Carolina, for allegedly violating the Clean Air Act.
The company could be fined up to $500,000.
In July 2009, Werner Transportation Services negligently released anhydrous ammonia, a hazard-
ous substance, and "negligently placed another person in imminent danger of death and serious bodily
injury" in violation of federal law. Unaware of the leak, motorist Jacqueline Ginyard died after driving
through a toxic ammonia cloud in front of the Tanner Industries Inc. plant in Swansea, South Carolina.
The leak occurred after a hose blew out while ammonia was being transferred between the Tanner plant
and a Werner tanker truck. Some 7,000 pounds of poisonous ammonia leaked after the wrong type of
hose was used to make the transfer, according to state regulators. The spreading ammonia, which can
burn people's lungs, sent at least seven people in the Swansea area to the hospital and caused others to
flee from the toxic threat. Leaking ammonia blackened trees and other vegetation for hundreds of yards
around the Tanner Industries plant.
The South Carolina Department of Health and Environmental Control fined Tanner $91,000 in
2010 for a series of emergency preparedness failures connected to the spill. Tanner officials have said
they were relying on the trucking company to use the right hose. The state labor department also has
fined Tanner $23,625 for workplace safety violations.
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Ohio Man Charged with Violating Clean Water Act by Discharging Fracking Waste into River
Tributary On February 14, 2013, BEN LUPO, of Poland, Ohio, was charged in federal district court for
the Northern District of Ohio with one count of violating the Clean Water Act. He is accused of directing
an employee on January 31, 2013, to illegally discharge brine and oil-based drilling mud into a stormwater
drain which flowed into an unnamed tributary of the Mahoning River and ultimately into the Mahoning
River near Youngstown. The statutory maximum for violating the Clean Water Act is three years in prison,
a $250,000 fine and one year of supervised release. In all cases, the sentences will not exceed the statutory
maximum and in most cases they will be less than the maximum.
According to an affidavit filed in federal court, Hardrock Excavating LLC is owned by Lupo and
located in Youngstown, Ohio. The company provides services to the oil and gas industry in Ohio and Penn-
sylvania, including the storage of brine and oil-based drilling mud. There are approximately 58 mobile stor-
age tanks at the facility and each holds approximately 20,000 gallons. The Ohio Department of Natural Re-
sources received a call from an anonymous person who stated that on the night of January 31, 2013, some-
one would be illegally discharging wastewater from the Hardrock facility.
Ohio DNR inspectors arrived and found a hose, connected to a storage tank, discharging wastewater
into a stormwater drain at the facility. Inspectors took a sample of the wastewater, which was black in
color. Ohio EPA personnel arrived at the facility on February 1 and found that the unnamed tributary had
puddles of oil throughout its length, from where the stormwater drained to the Mahoning River, approxi-
mately one mile away. Oil and an oily sheen were also visible in the Mahoning River.
That day, an EPA representative spoke with Lupo about the discharge into the storm drain. Lupo
admitted he directed a Hardrock employee to discharge the contents of the storage drain into the stormwater
drain, and further admitted that he directed discharge from a storage tank a total of six times, according to
the affidavit. Lupo later told EPA and DNR personnel that he directed a Hardrock employee to drain stor-
EPA Bulletin February 2013 12
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age tanks at Hardrock into the nearby stormwater drain six times over the previous six months, and that
Lupo was the one who "gave the word" for the storage tanks to be discharged, according to the affidavit.
On February 12, a Hardrock employee stated that the discharges began in November 2012 at the
direction of Lupo and that the employee was aware of at least 20 discharges into the stormwater drain.
The employee further stated that Lupo directed the employee, if questioned by authorities, to state that
the discharges were limited to a total of four to six times , according to the affidavit.
The case was investigated by EPA's Criminal Investigation Division, the Ohio EPA, Ohio Depart-
ment of Natural Resources, the Ohio Bureau of Criminal Investigation, the Youngstown Department of
Public Works, and the Youngstown Fire Department. It is being prosecuted by Special Assistant U.S.
Attorney Brad Beeson. A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it
will be the government's burden to prove guilt beyond a reasonable doubt.
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EPA Pub. 310-N-13-002
EPA Bulletin February 2013 13
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