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Environmental Crimes Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
July 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:
Donald Torriero, Julius DeSimone Region 2
Benjamin Franklin Pass, P&W Waste Oil Services, Inc. Region 4
Brian Raphael D'lsernia, Lagoon Landing, LLC. Region 4
Halliburton Energy Services, Inc. Region 6
Executive Recycling, Inc., Brandon Richter, Tor Olson Region 8
Martin Glaves Kuna Region 10
EPA Bulletin July 2013 1
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DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 2
Donald Torriero, Julius DeSimone
CWA & Superfund Statute/Illegal
asbestos dumping, wire fraud, de-
frauding U.S.
Region 4
Benjamin Franklin Pass, P&W Waste
Oil Services, Inc.
TSCA/Unlawful handling of toxic
substance, making false state-
ments, failing to pay taxes
Region 4
Brian Raphael D'Isernia: Lagoon
Landing, LLC.
Rivers & Harbors Act & CWA/
Wetlands related: dredging an up-
land cut ship launching basin, ille-
gal pollutant discharge
Region 6
Halliburton Energy Services, Inc.
Destruction of evidence in connec-
tion with Deepwater Horizon dis-
aster
Region 8
Executive Reclycing, Inc., Brandon
Richter, Tor Olson
International Crimes/Illegal expor-
tation, smuggling, obstruction of
justice
Region 10
Martin Glaves Kuna
Wire fraud/Lying about lead test
qualifications and certification
EPA Bulletin July 2013 2
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Quick Links:
p. 3 - 7
p. 8
p. 9 - 10
Sentencings (Back to Quick Links)
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Florida Man and His Corporation Sentenced for Wetlands Violations in Panama City On July 17,
2013, BRIAN RAPHAEL D'ISERNIA of Panama City Beach, Florida, and LAGOON LANDING, LLC,
a corporation controlled by D'Isernia, were sentenced in federal district court for the Northern District of
Florida for illegal dredging and felony wetlands
violations in Panama City. The two defendants
were ordered to pay a criminal fine totaling $2.25
i million dollars, the largest criminal fine assessed
~T. ' " " {for wetlands-related violations in Florida history.
D'Isernia was sentenced to pay a $100,000 crimi-
nal fine, while Lagoon Landing, LLC was sen-
tenced to pay a $2.15 million criminal fine, a $1
million community service payment, and a term
of three years probation.
D'Isernia pleaded guilty to knowingly
violating the Rivers and Harbors Act. D'Isernia
was charged with dredging an upland cut ship
launching basin in Allanton and the channel con-
necting it to East Bay between December 2009
and February 2010 without obtaining a permit.
Lagoon Landing, LLC, pleaded guilty to a
felony violation of the Clean Water Act for
knowingly discharging a pollutant into waters of the United States without a permit. Between 2005 and
2010, Lagoon Landing, LLC, through its agents and employees in conjunction with persons using tractors
and other heavy equipment, altered and filled wetland areas of property it controlled in Allanton without
obtaining a permit. The wetland areas were adjacent to and had a significant nexus to East Bay.
Lagoon Landing, LLC was also ordered to pay a $1 million community service payment to the Na-
tional Fish and Wildlife Foundation, a charitable non-profit organization created by Congress. The founda-
tion will use the money to fund projects for the conservation, protection, restoration and management of
wetland, marine and coastal resources, with an emphasis on projects benefiting wetlands in and around St.
Andrew Bay.
In a separate but related civil settlement, Northwest Florida Holdings, Inc., a Florida holding corpo-
ration controlled by D'Isernia, entered into an Administrative Compliance Order with EPA that will result in
the restoration of approximately 58.63 acres of wetlands and upland buffers. The wetlands will be protected
from future development by a conservation easement. The corporation also agreed to study the water quality
in and around the Allanton and Nelson Street Shipyards; upgrade stormwater protection for the Allanton
Shipyard; withdraw applications to convert the launching basin to a marina and create a Planned Unit De-
velopment at the Allanton Shipyard; and hire someone to oversee environmental compliance.
In a second separate but related civil settlement, Northwest Florida Holdings, Inc. entered into a con-
EPA Bulletin July 2013 3
Photo taken on February 24, 2010, which depicts dredge barge
operating illegally and without a permit in upland cut launch ba-
sin. This is the crime with which Brian R. D'Isernia was
charged. Photo property of US Army Corps of Engineers.
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The light-colored sands depicted in the photos above are
dredge spoils that have been illegally discharged into jurisdic-
tional wetlands.
In the foreground is the illegal an unpermitted dredge spoils
basin that was constructed on the Lagoon Landings, LLC
parcel This spoils basin was constructed in jurisdictional wet-
lands and had an illegal and unpermitted return water dis-
charge to St. Andrew bay.
sent order with the Florida Department of Environ-
mental Protection and agreed to conduct storm water
corrective actions and water quality studies at the
Allanton Shipyard. The corporation will pay a
$9,750 civil fine to the Ecosystem Management and
Restoration Trust Fund, and $94,718.25 in severed
dredge materials fees to the Florida Internal Im-
provement Trust Fund.
In a third separate but related civil settle-
ment, Bay Fabrication, Inc., a corporation controlled
by D'Isernia, entered into a consent order with
FDEP and agreed to conduct stormwater corrective
actions and water quality studies at the Nelson Street
Shipyard. The corporation will pay a $6,000 civil
fine to the Ecosystem Management and Restoration
Trust Fund, and $76,923 in severed dredge materials
fees to the Florida Internal Improvement Trust Fund.
In a fourth separate but related civil settle-
ment, Peninsula Holdings, LLC, a corporation con-
trolled by D'Isernia, entered into a Consent Order
with FDEP and agreed to conduct stormwater im-
provements at property it owns located at 2500 Nel-
son Street, Panama City, Florida 32401. The corpo-
ration will pay a $1,500 civil fine to the Ecosystem
Management and Restoration Trust Fund.
In a fifth separate but related civil settlement,
D'Isernia and his wife Miriam D'Isernia, entered
into a consent order with FDEP to remove unauthor-
ized fill materials from property located in Panama
City Beach, Fla. Brian and Miriam D'Isernia will
pay a $250 civil fine to the Ecosystem Management
and Restoration Trust Fund.
These cases were investigated by the EPA's
Criminal Investigation Division and the Coast Guard
Investigative Service, in partnership with EPA Re-
gion 4, the U.S. Department of Transportation, Of-
fice of Inspector General, U.S. Army Corps of Engi-
neers, U.S. Coast Guard Station Panama City, U.S.
Department of Agriculture, and FDEP. They were
prosecuted by the Randall J. Hensel, Assistant U.S.
Attorney for the Northern District of Florida.
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EPA Bulletin July 2013 4
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Two New York Men Sentenced for Dumping Thousands of Tons of Asbestos in Violation of Clean
Water Act - On July 31, 2013, DONALD TORRIERO and JULIUS DeSIMONE were sentenced in
federal district court for the Northern District of New York for illegally dumping thousands of tons of as-
bestos-contaminated construction debris on a 28-acre piece of property on the Mohawk River in upstate
New York. Torriero was sentenced to serve 36
months in prison followed by three years of su-
pervised release. DeSimone was sentenced to
five years' probation, including six months of
home confinement. Both men were ordered to I
pay $492,000 each in restitution for, among
other things, cleanup expenses at the site. They
pleaded guilty to conspiring to violate the Clean
Water Act, the Superfund statute, wire fraud
and to defrauding the United States. In addi-
tion, Torriero pleaded guilty to substantive wire
fraud charges and DeSimone was convicted of
making false statements to law enforcement in
connection with a fabricated "permit letter" the
conspirators created and used to dump at the
Site.
The illegal landfill where asbestos-contaminated construction de-
bris was being dumped. The site borders the Mohawk River.
According to the evidence, Torriero, DeSimone and others conspired to fill in the entire property
over the course of five years with pulverized construction and demolition debris that was processed at New
Jersey solid waste management facilities and then transported to open property in Frankfort, N. Y. The plot
was uncovered by law enforcement just months after the operation began, but not before the conspirators
had already dumped at least 400 truckloads of debris at the site. Much of the material that was dumped was
placed in and around waters of the United States and some of the material was found to be contaminated
with asbestos. The conspirators then concealed the illegal dumping and recruited others to join in the ille-
gal dumping by fabricating a New York State Department of Environmental Conservation (DEC) permit
and forged the name of a DEC official on the fraudulent permit.
This case is related to the guilty pleas and sentencings associated with Eagle Recycling, Mazza &
Sons, Inc., Dominick Mazza, Cross Nicastro and Jon Deck. Deck is the last remaining individual awaiting
sentencing.
The case was investigated by EPA's Criminal
I Investigation Division, the New York State Environ-
mental Conservation Police, Bureau of Environmental
Crimes, the Internal Revenue Service, the New Jersey
State Police Office of Business Integrity Unit, the
New Jersey Department of Environmental Protection,
and the Ohio Department of Environmental Protec-
tion The case is being prosecuted by Assistant U.S.
Attorney Craig A. Benedict of the Northern District
of New York, and Trial Attorneys Todd W. Gleason
and Gary Donner of the Environmental Crimes Sec-
|tion of the Justice Department's Environment and
Natural Resources Division.
Illegally dumped asbestos-contaminated construction debris ^> t-1 T
at the site.
EPA Bulletin July 2013 5
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Executive Recycling Company and Executives Sentenced for Fraud and International Environ-
mental Crimes -- On July 23, 2013, EXECUTIVE RECYCLING, INC., and BRANDON RICHTER,
of Highlands Ranch, Colorado, the owner and chief executive officer of Executive Recycling, were sen-
tenced in federal district court for the District of Colorado for their roles in a fraudulent scheme related to
the disposal and exportation of electronic waste to foreign countries. Executive Recycling, the corpora-
tion, was sentenced to pay a $4,500,000 fine and to serve three years on probation. Richter was ordered
to serve 30 months in federal prison, followed by three years on supervised release. He was also ordered
to pay a $7,500 fine and $70,144 in restitution joint and several with the victims of the crime. He was
ordered $142,241.10 in asset forfeiture. Richter was ordered to report to a Bureau of Prisons facility
within 15 days of designation. The defendants were convicted in December 2012 of multiple counts of
mail and wire fraud and environmental crimes related to the illegal disposal of electronic waste, smug-
gling, and obstruction of justice, following an 11-day trial.
Previously former vice president of operations, TOR OLSON, of Parker, Colorado, was sen-
tenced to serve 14 months in prison, pay a $5,000 fine, and pay over $15,000 in restitution. Olson re-
mains free on bond pending appeal. Olson
was sentenced on July 17, 2013. Executive
Recycling, Inc., as a corporation, Richter and
Olson were indicted by a federal grand jury in
Denver on September 15, 2011.
According to the indictment, as well
as the facts presented at trial, Executive Recy-
cling was an electronic waste recycling busi-
ness located in Englewood, Colorado with
affiliated locations in Utah and Nebraska. The
company collected electronic waste from pri-
vate households, businesses, and government
entities. Executive Recycling was registered
with the Colorado Department of Public
Health and Environment as a "Large Quantity
Handler of Universal Waste." Richter, as
owner and CEO, was responsible for super-
vising all aspects of the company. Olson, the vice president of operations, was responsible for running
day-to-day operations.
A significant portion of electronic waste collected by the defendants were Cathode Ray Tubes
(CRTs). CRTs are the glass video display component of an electronic device, usually a computer or tele-
vision monitor, and are known to contain lead. The defendants engaged in the practice of exporting elec-
tronic waste, including CRTs, from the United States to foreign countries, including the People's Repub-
lic of China. They regularly negotiated the sale of electronic waste to brokers who represented foreign
buyers or who sold the electronic waste overseas. The foreign buyers often paid the defendants directly.
To transport the electronic waste, the defendants used shipping cargo containers which were loaded at the
company's facility. The containers were then transported by rail to domestic ports for export overseas.
Executive Recycling appeared as the exporter of record in over 300 exports from the United
States between 2005 and 2008. Approximately 160 of these exported cargo containers contained a total
of more than 100,000 CRTs.
Between February 2005 and continuing through January 2009, the defendants knowingly devised
and intended to devise a scheme to defraud various business and government entities who wanted to dis-
pose of their electronic waste, and to obtain these business and government entities' money by means of
EPA Bulletin July 2013 6
Port in Hong Kong where Executive Recycling exported electronic
waste. Approximately 21 million containers are processed through
this Port annually.
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materially false and fraudulent pretenses. The defendants represented themselves on a website to have
"extensive knowledge of current EPA requirements." The defendants falsely advertised to customers that
they would dispose of electronic waste in compliance with all local, state and federal laws and regulations.
It was part of the scheme that the defendants falsely .represented that they would dispose of all electronic
waste, whether hazardous or not, in an environmentally friendly manner. Specifically, the defendants
falsely represented that the defendant company recycled electronic waste "properly, right here in the U.S."
They also stated that they would not send the electronic waste overseas.
The defendants' misrepresentation induced customers to enter into contracts or agreements with the
defendants for electronic waste disposal. Each victim paid the defendants to recycle their electronic waste
in accordance with the representations made by the defendants. Contrary to their representations, the defen-
dants sold the electronic waste they received from customers to brokers for export overseas to the People's
Republic of China and other countries.
The case was investigated by EPA's Criminal Investigation Division, the U.S. Immigration and
Customs Enforcement's Homeland Security Investigations, and the Colorado Attorney General's Office,
Special Prosecutions Unit. It was prosecuted by Assistant U.S. Attorneys Suneeta Hazra and Valeria
Spencer and Special Assistant U.S. Attorney Lillian Alves.
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Washington Man Sentenced to 14 Months in Prison for Lying About His Ability to Conduct Lead
Testing -- On July 23, 2013, MARTIN GLAVES KUNA, of Vancouver, Washington, was sentenced in
federal district court for the District of Oregon to 14 months in prison after pleading guilty to one count of
wire fraud. Kuna falsely advertised and told 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 qualified or certified by state au-
| thorities to do so.
From May 2008 to September 2012, Kuna advertised
I his services to conduct lead-based paint inspections and testing,
and indicated to individuals 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 representations that he had. Over the course of the scheme,
One of the homes Kuna performed illegal lead- Kuna conducted more than ten such inspections. In one instance
based paint inspection and where children were where Kuna performed lead-based paint inspections and testing,
children resided in the home and Kuna provided the home
owner a false negative for the detection of lead. Evidence introduced by the government at sentencing
demonstrated that the defendant failed to perform the appropriate tests to determine lead in the home. As a
result, some of the children in the home experienced increased lead levels in their blood.
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 per-
form lead-based paint inspections and testing through September 2012. In sentencing Kuna, the Judge de-
clared, "Our first duty in society as adults is to protect children." Following his findings and imposition of
14 months in prison, the Judge told the defendant, "The bottom line is, the actions you engaged in put chil-
dren at risk. Our society just cannot allow that."
The investigation was conducted by EPA's Criminal Investigation Division. The prosecution was
handled by Assistant U.S. Attorney Michelle Holman Kerin.
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EPA Bulletin July 2013 7
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Plea Agreements (Back to Quick Links)
North Carolina Used-Oil Recycling Business and Owner Plead Guilty to Unlawful Handling of PCB-
Contaminated Used Oil and Other Crimes -- On July 15, 2013, BENJAMIN FRANKLIN PASS and
P&W WASTE OIL SERVICES, INC., of Wilmington, North Carolina, pleaded guilty in federal district
court for the Eastern District of North Carolina for violations of the Toxic Substances Control Act, as well
as for making false statements and failing to pay several years of taxes. The defendants admitted to,
among other things, the unlawful handling of a toxic substance that resulted in widespread contamination.
The P&W facility in Leland, N.C., in-
I eluded a tank farm consisting of multiple tanks
ranging from 20,000 gallons to 500,000 gal-
lons. The facility is located approximately 500
feet to the east of the Cape Fear River and a feder-
ally recognized wetland. As part of its business
operations, P&W transported, processed and mar-
keted used oil contaminated with polychlorinated
biphenyls (PCBs). P&W received the used oil
from small and large companies, such as automo-
tive service stations, transformer repair companies
and marinas. P&W also conducted tank cleaning
A section of the tank farm at P& W Waste Oil Services, Inc. an(j was^e removal
As part of the plea agreements, Pass agreed to pay $538,587, plus interest, in restitution to the Inter-
nal Revenue Service. P&W agreed to pay restitution in the amount of $19 million as compensation to Co-
lonial Oil and International Paper for the costs associated with the storage and proper disposal of PCB-
contaminated used oil as well as any monetary losses associated with the illegal handling, storage and
transportation of toxic substances. P&W also agreed to a five-year term of probation and to take remedial
action to address the environmental contamination at its facility in eastern North Carolina and other leased
property in eastern North Carolina, including but not limited to, the proper treatment and/or disposal of
PCB-contaminated waste oil.
According to the charges filed in federal court in Raleigh, N.C., and information stated in open
court, the defendants knowingly failed to comply with regulations covering PCB-contaminated used oil by
unlawfully transporting, storing and disposing of used oil contaminated with PCBs. Specifically, in July
2009, an employee transported waste oil containing fluid from five PCB transformers from a site in Wal-
lace, S.C., to the P&W facility. The investigation revealed that the waste oil was contaminated with PCB
concentrations in excess of 500 parts per million.
Despite knowledge of the investigation into the defendants' illegal handling of PCB-contaminated
used oil, Pass and an employee of P&W (at Pass' direction) continued to unlawfully dilute the contami-
nated used oil. The mishandling of the PCB-contaminated used oil resulted in the wide-spread contamina-
tion at the site and other sites, resulting in millions of dollars in cleanup costs. Currently, efforts are under-
way to clean up the contamination at P&W's facility in Leland, N.C., which has been designated a Super-
fund site by the EPA.
The case was investigated by EPA's Criminal Investigation Division, the IRS's Office of Criminal
Investigations, and the U.S. Coast Guard's Criminal Investigative Services. It is being prosecuted by As-
sistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Trial Attorney
Shennie Patel of the Justice Department's Environmental Crimes Section of the Environment and Natural
Resources Division.
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EPA Bulletin July 2013 <
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Indictments/Informations (Back to Quick Links)
Halliburton Agrees to Plead Guilty to Destroying Evidence in Connection with Deepwater Horizon
Tragedy -- On July 25, 2013, HALLIBURTON ENERGY SERVICES, INC. agreed to plead guilty to
destroying evidence in connection with the Deepwater Horizon disaster. A criminal information charging
Halliburton with one count of destruction of evidence was filed in U.S. District Court in the Eastern Dis-
trict of Louisiana.
Halliburton has signed a cooperation and guilty plea agreement with the government in which it has
agreed to plead guilty and admit its criminal conduct. As part of the plea agreement, Halliburton has fur-
ther agreed, subject to the court's approval, to pay the maximum-available statutory fine, to be subject to
three years of probation and to continue its cooperation in the government's ongoing criminal investiga-
tion. Separately, Halliburton made a voluntary contribution of $55 million to the National Fish and Wild-
life Foundation that was not conditioned on the court's acceptance of its plea agreement.
According to court documents, 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
and fire, which resulted in the deaths of 11 rig workers and the largest oil spill in U.S. history. Following
the blowout, Halliburton conducted its own review of various technical aspects of the well's design and
construction. On or about May 3, 2010, Halliburton established an internal working group to examine the
Macondo well blowout, including whether the number of centralizers used on the final production casing
could have contributed to the blowout. A production casing is a long, heavy metal pipe set across the area
of the oil and natural gas reservoir. Centralizers are protruding metal collars affixed at various intervals on
the outside of the casing. Use of centralizers can help keep the casing centered in the wellbore away from
the surrounding walls as it is lowered and placed in the well. Centralization can be significant to the qual-
ity of subsequent cementing around the bottom of the casing. Prior to the blowout, Halliburton had recom-
mended to BP the use of 21 centralizers in the Macondo well. BP opted to use six centralizers instead.
As detailed in the information, in connection with its own internal post-incident examination of the
well, in or about May 2010, Halliburton, through its Cementing Technology Director, directed a Senior
Program Manager for the Cement Product Line (Program Manager) to run two computer simulations of the
Macondo well final cementing job using Halliburton's Displace 3D simulation program to compare the
impact of using six versus 21 centralizers. Displace 3D was a next-generation simulation program that was
being developed to model fluid interfaces and their movement through the wellbore and annulus of a well.
These simulations indicated that there was little difference between using six and 21 centralizers. Program
Manager was directed to, and did, destroy these results.
In or about June 2010, similar evidence was also destroyed in a later incident. Halliburton's Ce-
menting Technology Director asked another, more experienced, employee ("Employee 1") to run simula-
tions again comparing six versus 21 centralizers. Employee 1 reached the same conclusion and, like Pro-
gram Manager before him, was then directed to "get rid of the simulations.
Efforts to forensically recover the original destroyed Displace 3D computer simulations during en-
suing civil litigation and federal criminal investigation by the Deepwater Horizon Task Force were unsuc-
cessful.
In agreeing to plead guilty, Halliburton has accepted criminal responsibility for destroying the
aforementioned evidence.
The guilty plea agreement and criminal charge are part of the ongoing criminal investigation by the
Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Hori-
zon Task Force, based in New Orleans, is supervised by Acting Assistant Attorney General Mythili Raman
and led by John D. Buretta, who serves as the director of the task force. The task force includes prosecu-
EPA Bulletin July 2013 9
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tors from the Criminal Division and the Environment and Natural Resources Division of the Department of
Justice; the U.S. Attorney's Office for the Eastern District of Louisiana and other U.S. Attorney's Offices;
and investigating agents from: EPA's Criminal Investigation Division; the FBI; Department of the Interior,
Office of Inspector General; Environmental Protection Agency, Office of Inspector General; National Oce-
anic and Atmospheric Administration, Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wild-
life Service; and the Louisiana Department of Environmental Quality.
The case is being prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy
Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cul-
len, Colin Black and Rohan Virginkar.
An information is merely a charge and a defendant is presumed innocent unless and until proven
guilty beyond a reasonable doubt.
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EPA Pub. 310-N-13-007 EPA Bulletin July 2013 10
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