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Environmental Crimes Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
August 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:
Jonathan Deck Region 2
Diana Shipping Services, S.A., loannis Prokakis, Antonios Boumpoutelos Region 3
Bobby Joe Silvers, John Coleman Carver III, Joseph Kyle Orr Region 4
Jassim Juburi Region 4
Tennie White Region 4
Lamont P. Pryor Region 5
Kennedy Mint, Inc., Teresina Montorsi Region 5
Calvin Hall Region 5
Roy C. Bradley Sr., Gerald A. Essex, Rudolgo Rodriguez Region 5
William "Bill" Lafon Musgrove Region 6
Frederick De La Houssaye, Southwest Rice Mill, Inc. Region 6
Sean Clark, Devorah Lopez Region 8
Bradley Eberhart, Douglas Greiner Region 10
EPA Bulletin August 2013 1
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DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 2
Jonathan Deck
CWA/Wire fraud connected to
the dumping of asbestos-
contaminated debris onto prop-
erty by a river
Region 3
Diana Shipping Services, S.A., lo-
annis Prokakis, Antonios
Boumpoutelos
Act to Prevent Pollution from
Ships/Conspiracy, failure to
maintain oil record book, falsifi-
cation of records, concealment of
tangible objects
Region 4
Bobby Joe Silvers, John Coleman
Carver III, Joseph Kyle Orr
CWA/Illegally discharging a pol-
lutant into navigable U.S. waters
Region 4
Jassim Juburi
CAA/Fraudulent vehicle emission
inspections
Region 4
Tennie White
CWA/Faking laboratory results
and lying to federal investigators
Region 5
Lamont P. Pry or
C AA/Improper handling of asbes-
tos during demolition
EPA Bulletin August 2013 2
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DEFENDANT SUMMARY:
REGION
DEFENDANTS
CASE TYPE/STATUTES
Region 5
Kennedy Mint, Inc., Teresina
Montorsi
CWA/Dumping of liquid cyanide
into storm drain
Region 5
Calvin Hall
Conspiracy to defraud the U.S.
Region 5
Roy C. Bradley Sr.. Gerald A. Essex.
Rudolgo Rodriguez
CAA/Illegal asbestos removal. Wit-
ness tampering, false statements
Region 6
William "Bill" Lafon Musgrove
CAA/Negligent release of ex-
tremely hazardous substance
Region 6
Frederick De La Houssaye, South-
west Rice Mill, Inc.
CW A/Negligent discharge of haz-
ardous materials
Region 8
Sean Clark, Devorah Lopez
CW A/Allegedly discharging a pol-
lutant into U.S. waters
Region 10
Bradley Eberhart, Douglas
Greiner
CAA/Violations of asbestos work
practice standards
EPA Bulletin August 2013 3
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Quick Links:
p. 4-9
p. 10-11
p. 12
p. 13
Sentencings (Back to Quick Links)
The emissions analyzer used by Juburi to conduct
fraudulent inspections.
North Carolina Man Gets 18 Month Prison Term for Vehicle Emissions Fraud - On August 9, 2013,
JASSIM JUBURI, of Charlotte, North Carolina, was sentenced in federal district court for the Western
District of North Carolina to serve 18 months in prison for conducting over 530 false vehicle emission in-
spections. He was also ordered to stay under court super-
! vision for three years following the prison term, and to a
'pay a $15,000 fine, which, if paid in full, can reduce Jub-
uri's term of supervised release to two years.
According to court records and yesterday's sen-
tencing hearing, Juburi worked at Central Auto Inspec-
tion & Repair (Central Auto) in Charlotte, as a mechanic
I and a vehicle emissions inspector licensed by the state of
North Carolina. As a state-licensed emissions inspector,
Juburi conducted onboard diagnostic (OBD) inspections
| to test federally mandated vehicle emissions. Court re-
cords show that from August 2010 to March 2012, and
while employed at Central Auto, Juburi conducted 534
illegal vehicle emissions inspections, using surrogate ve-
hicles to falsely pass those that would have failed emissions inspections. The illegal practice of utilizing
substitute vehicles for emissions testing is referred to in the industry as "clean scanning." Court records
indicate that Juburi charged as much as $100 to clean scan a vehicle. Law enforcement agents were able to
obtain a fraudulent vehicle emissions certificate from Central Auto without ever producing a vehicle to be
inspected. The fraudulent emissions test and certificate were generated by Juburi.
In March 2012, Juburi pleaded guilty to one count of conspiracy to violate the Clean Air Act by
conducting false vehicle emissions inspections. Court records indicate that Juburi continued to conduct
false inspections, even after entering a guilty plea on the charge. According to filed documents, between
March and April 2012, Juburi conducted an additional 11 clean scans at Central Auto. Court records show
that Juburi was unable to continue clean scanning vehicles after the North Carolina Department of Motor
Vehicle's License and Theft Bureau suspended Central Auto's license to conduct emissions inspections.
Central Auto's license has been suspended for a period of 10 years.
Juburi has been in local federal custody since October 2012, following a court-ordered bond revo-
cation for continuing the fraudulent conduct after entering a guilty plea. Juburi will remain in the custody
of the U.S. Marshals Service pending placement by the Federal Bureau of Prisons. All federal sentences
are served without the possibility of parole.
The investigation of this case was conducted by the EPA's Criminal Investigation Division, the
North Carolina SBFs Diversion and Environmental Crimes Unit, and the North Carolina Department of
Motor Vehicle's License and Theft Bureau, with assistance from the North Carolina Division of Air Qual-
ity, 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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Two Idaho Men Sentenced to Prison for Asbestos Violations - On August 12, 2013, BRADLEY
EBERHART, of Garden Valley, Idaho, and DOUGLAS GREINER, of Eagle, Idaho, were sentenced in
federal district court for the District of Idaho for violating the asbestos work practice standards of the Clean
Air Act. Eberhart was sentenced to six months in prison plus six months of home confinement, followed
by six months of supervised release,
200 hours of community service, and
was order to pay restitution of $3.98
million, in joint and several liabil-
ity. Greiner was also sentenced to six
months in prison and six months of I
home confinement, to be followed by
six months of supervised release. The
amount of restitution by Greiner will be
the subject of further briefing by the
parties. Both defendants previously |
pleaded guilty on February 26, 2013.
Boise-based Owyhee Construe-1
tion, Inc., was the successful bidder on
a $2.1 million waterline renovation pro-
ject in Orofmo, Idaho, a rural commu-
nity in north central Idaho. Greiner
was the project superintendent and
Eberhart was the onsite supervisor of the project. The contract documents warned Owyhee Construction
that the company may encounter up to 5,000 linear feet of cement asbestos pipe (CAP) during the renova-
tion. CAP is a non-friable form of asbestos that is encapsulated in a cement matrix. When the CAP is bro-
ken or crushed by heavy equipment or subjected to cutting and grinding by machinery it becomes subject
to regulation because of the threat to public health from airborne fibers.
Eberhart and Greiner failed to properly supervise the renovation. Eberhart supervised employees
who were not properly trained in asbestos work and were not properly outfitted with protective gear while
I cutting CAP with saws. While work-
ing in the trenches to replace pipe,
workers would remove CAP from the
trenches, crush it and then place it
back in the trenches. Large quantities
of CAP were also removed from the
trenches and ended up as fill material
on sixteen properties around Oro-
fmo. Greiner pleaded guilty to or-
chestrating one of the disposals. The
EPA cleanup cost just under $4 mil-
Pieces of the old cement asbestos pipe that was improperly handled by
Greiner and Eberhart.
Superfund contractor wetting suspected asbestos containing material from the
dump site.
lion.
The case was investigated by
EPA's Criminal Investigation Divi-
sion. It was prosecuted by Assistant U.S. Attorney D. Marc Haws from the District of Idaho and Senior
Trial Attorney J. Ronald Sutcliffe of the Justice Department's Environmental Crimes Section of the Envi-
ronment and Natural Resources Division.
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EPA Bulletin August 2013 5
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Louisiana Mill Owner Pleads Guilty and Is Sentenced for Failing to Report Waste Oil Discharge into
Bayou - On August 14, 2013, FREDERICK MARQUE DE LA HOUSSAYE of Crowley, Louisiana,
president and owner of SOUTHWEST RICE MILL, INC., pleaded guilty in federal district court for the
Western District of Louisiana to one count of negligent discharge of hazardous materials. De La Houssaye
was sentenced to serve 24 months of probation and
160 hours of community service. He was also or-
dered to pay a $2,500 fine. Southwest Rice Mill
was ordered to pay restitution of $1,012,401.
According to evidence presented at the
guilty plea, from May 27, 2011 to May 31, 2011,
De La Houssaye and Southwest Rice Mill, Inc. neg-
ligently discharged waste oil into navigable waters.
Mill laborers were performing routine maintenance
on May 27, 2011 on a railroad spur, which in part
the mill leased from Acadiana Railroad, in an effort
to maintain drainage ditches for the mill and Acadi-
| ana Railroad. While performing the spur mainte-
nance near the mill with an excavator, a laborer
negligently struck the valve of an above-ground
Waste oil discharged from Southwest Rice Mill, Inc.,
into Bayou Blanc.
storage tank containing waste oil, which is a haz-
ardous substance. After the valve was struck, oil began to shoot 10 to 15 feet from the tank. The tank was
near a drainage ditch, and the oil spilled and accumulated in the ditch. The laborer who struck the valve
called his supervisor, De La Houssaye. About an hour later, De La Houssaye arrived at the scene. An un-
known amount of oil had spilled from the tank and flowed into Bayou Blanc. De La Houssaye ignored his
duty to report the spill, and he and the laborers later left the site.
Robert Burke, the Crowley District Fire Chief, received a call May 28, 2011, from a resident report-
ing an oil spill on Bayou Blanc. Burke traced the oil spill back to the drainage ditch at the mill. De La
Houssaye told investigators he planned to deal with it after the Memorial Day holiday, which was May, 31,
2011. Environmental authorities were called to the scene to investigate and began cleanup efforts. The U.S.
Coast Guard, U.S. Environmental Protection Agency, Louisiana Department of Environmental Quality, and
others conducted an operation that cost federal, state, and local authorities $1, 012,401.
The case was investigated by EPA's Criminal Investigation Division, the U.S. Coast Guard, the
Louisiana Department of Environmental Quality, and the Crowley District Fire Department. Assistant U.S.
Attorney Myers P. Namie prosecuted the case.
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EPA Bulletin August 2013 6
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Ohio Company and Owner's Wife To Pay More Than $330,000 in Fish Kill Case -- On August 29,
2013, KENNEDY MINT, INC., of Strongsville, Ohio, a company that specializes in collectible coins,
but previously conducted metal plating and printing operations, was ordered in federal district court for
the Northern District of Ohio to make a community service payment of $300,000 to the Cleveland
Metroparks and to pay restitution in the amount of $30,893 for violating the Clean Water Act. The com-
pany and the company owner's wife plead guilty to their roles in the dumping of a drum of liquid cyanide
into a storm drain that flowed into the Rocky River, resulting in the death of more than 30,000 fish.
TERESINA MONTORSI, the wife of the company's
owner, was sentenced to one year of probation and ordered to
pay a fine of $5,000. She had pleaded guilty to obstruction of
justice. Company owner Renato Montorsi was indicted last
year, but those charges were dismissed after he was found to
be incompetent to stand trial. Kennedy Mint will pay restitu-
tion of $30,893 - $1 for every fish killed by the illegal dis-
charge. The money will be paid to the Ohio Department of
Natural Resources and used to restock the river with steelhead
trout under the terms of the plea agreement. Kennedy Mint Two dmmsofcyanidediscovered~t the Mon-
will also pay $300,000 as part of community service. The torsi residence. The contents of the red, white,
$300,000 will be paid to the Cleveland Metroparks. and blue were discharged into a storm drain at
Kennedy Mint, which led to the death of 30,983
Renato Montorsi owned and operated Kennedy Mint, fish in the East Branch of the Rocky River.
which is located in Strongsville. 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, according to court documents.
On April 16, 2012, Montorsi, with assistance from an employee, put two drums into a dumpster outside
Kennedy Mint. On April 17, the waste hauling company declined to dispose of the contents of the dump-
ster because of the two drums inside, according to court documents. On April 18, Montorsi moved the
drums from the dumpster and placed them next to the storm drain in the Kennedy Mint parking lot, ac-
cording to court documents. Later that day, Montorsi used a hammer and sharp metal tool to punch a hole
near the bottom of a drum that included 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 court documents.
Around April 22, the Ohio Department of Natural Resources received reports of dead fish in the
East Branch of the Rocky River. Nearly every fish was dead downstream for the next three miles, accord-
ing to the court documents. The Ohio DNR counted approximately 30,893 dead fish in that three-mile
stretch of the river, due to the discharge ofcyanide, according to court documents.
On April 25, personnel from the Ohio Environmental Protection Agency asked to enter the Ken-
nedy Mint facility to look for the drums, which they did not locate. After they left, Renato Montorsi, with
help from Teresina Montorsi, moved two drums from Kennedy Mint to their residence so they would not
be discovered if investigators returned, according to court documents.
On June 22, Teresina Montorsi gave permission to U.S. EPA agents and Ohio EPA investigators
to search their home without a warrant, at which point the agents found the punctured drum and another
drum that contained cyanide, according to court documents.
The case was investigated by EPA's Criminal Investigation Division; Ohio Bureau of Criminal
Identification and Investigation; the Northeast Ohio Regional Sewer District; the Ohio Environmental
Protection Agency, Office of Special Investigations; 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.
^ EPA Bulletin August 2013
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New Jersey Man Sentenced for Dumping Thousands of Tons of Asbestos Contaminated Debris Into
River - On August 29, 2013, JONATHAN DECK, of Norwood, New Jersey, was sentenced in federal
district court for the Northern District of New York to 15 months in prison for conspiring to commit wire
fraud in connection with the illegal dumping of thousands
of tons of asbestos-contaminated construction debris on a
28-acre piece of property on the Mohawk River in upstate
New York.
Deck was the last individual sentenced in a series
of prosecutions that involved at least two companies and
five individuals including Eagle Recycling, Mazza & Sons
Inc., Julius DeSimone, Donald Torriero, Dominick Mazza,
and Cross Nicastro. The investigation of this conspiracy
spanned more than five years and resulted in more than 10
years of incarceration and more than $1 million in criminal
fines, restitution, and cleanup costs to remediate a site now
contaminated with more than 400 truckloads of asbestos-
contaminated wastes.
Property on the Mohawk River where thousands of
tons of asbestos-contaminated construction and
demolition debris was illegally dumped.
Piles of illegally dumped asbestos-
contaminated debris at the site.
Deck was sentenced to serve 15 months in prison, followed by three years of supervised release.
He was further ordered to pay $492,000 in restitution for, among other things, cleanup expenses at the
site. Given the ongoing nature of the cleanup, the judge in the case
further authorized the United States to recoup additional, future
cleanup costs from the conspirators as well.
Deck pleaded guilty to conspiring to violate the wire fraud
statute. According to the evidence, Deck 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 prop-
erty 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 illegal 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 was investigated by EPA's Criminal Investi-
gation Division, the New York State Environmental Conserva-
tion Police, Bureau of Environmental Crimes, Internal Revenue
Service, New Jersey State Police Office of Business Integrity
Unit, New Jersey Department of Environmental Protection, and
Ohio Department of Environmental Protection. It was prose-
cuted by Assistant U.S. Attorney Craig A. Benedict of the
Northern District of New York, and Trial Attorneys Todd W.
Sample taken from a pile of debris at the site. Gleason and Gary Donner of the Environmental Crimes Sec-
tion of the Justice Department's Environment and Natural Resources Division.
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EPA Bulletin August 2013 8
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Mississippi Lab Operator Sentenced to 40 Months for Fabricating Industrial Wastewater Results
On August 27, 2013, TENNIE WHITE, the owner and operator of an environmental laboratory in Jack-
son, Mississippi, was sentenced in federal district court for the Southern District of Mississippi to 40
months in prison in connection with her conviction for faking laboratory testing results and lying to federal
investigators. White also was sentenced to three years of supervised release to follow her prison sentence
and was ordered to pay a $1,000 fine and a $100 special assessment.
White, owner, operator and manager of Mississippi Environmental Analytical Laboratories, Inc.,
was found guilty in May 2013 of two false statement counts and one count of obstructing proceed-
ings. Evidence at trial established that White was hired to perform laboratory testing of a manufacturer's
industrial process waste water samples and then to use those results to complete monthly discharge moni-
toring reports for submission to the Mississippi Department of Environmental Quality. However, for the
months October to December 2008, White created discharge monitoring reports (DMRs) that falsely rep-
resented that laboratory testing had been performed on samples when, in fact, such testing had not been
done. White further created a fictitious laboratory report and presented it to her client for use in preparing
another DMR for January 2009. White made false statements to a federal agent during a subsequent crimi-
nal investigation.
The case was investigated by EPA's Criminal Investigation Division. It was 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. Attorney Gaines Cleveland of the U.S. Attorney's Of-
fice for the Southern District of Mississippi.
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EPA Bulletin August 2013 9
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Plea Agreements (Back to Quick Links)
Texas Man Pleads Guilty to Negligent Release of Extremely Hazardous Substance On August 7,
2013, WILLIAM "BILL" LAFON MUSGROVE, of Quinlan, Texas, pleaded guilty in federal district
~1 court for the Eastern District of Texas to negligently releasing an ex-
tremely hazardous substance and placing another person in danger of im-
minent death or serious bodily injury. He faces up to one year in prison
and a $250,000.00 fine. A sentencing date has not been scheduled.
Musgrove admitted that in June of 2011, as the vice president and
operations manager of Industrial Precious Metals Recovery, Incorporated
(IPMR), in Royse City, Texas, he allowed the company's metal recovery
'process to release approximately ten pounds of Nitrogen Oxides, or
Interior of facility where many of the "NOx" within a 24 hour time period into the ambient air at ground level
metal recovery operations took place. , .,.,..
through an open doorway, instead of utilizing the company s air scrubber
which was broken at the time. Musgrove admitted that he should have known that releasing NOx in that
manner would place people in imminent danger of death or serious
bodily injury. Federal environmental regulations characterize Nitro-
gen Oxides as an "extremely hazardous substance." At the time, the
IPMR facility in Royse City was adjacent to other commercial facili-
ties with employees that were present during the NOx emis-
sions. The facility has since closed. The case was investigated by
EPA's Criminal Investigations Division, and the Texas Commission
on Environmental Quality's Environmental Crimes Unit. It was
prosecuted by Assistant U.S. Attorney Jim Noble.
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Building with heavily stained exterior as a
result of the nitrogen oxide fumes.
Ohio Demolition Company Owner Pleads Guilty to Violating CAA - On August 8, 2013, LAMONT P.
PRYOR, of Lima, Ohio, pleaded guilty in federal district court for the Southern District of Ohio to violat-
ing the Clean Air Act in connection with his company's handling of asbestos during the demolition of the
former Pi qua Medical Center in 2008.
According to court documents, Pry or and his company, Avalon Commonwealth, Inc., removed scrap
metal from the hospital as part of the demolition process. The scrap metal was removed and sold, but the
rest of the demolition debris, including friable asbestos, was piled in areas around the hospital, exposed to
the wind and elements. Pryor knew that he was not supposed to leave the friable asbestos outside the hospi-
tal, exposed to the elements, but instead was supposed to properly deposit the asbestos that was generated as
result of his renovation and demolition activities at the hospital at a licensed asbestos waste disposal facil-
ity. Pryor knowingly failed to do so. A representative of the Regional Air Pollution Control Agency
(RAPCA), the local air pollution control agency serving Miami County and the city of Piqua, inspected the
site in December 2008, saw the damaged asbestos outside the hospital, and asked that demolition be halted
while the investigation took place.
Pryor pleaded guilty to three counts of violating the asbestos removal provisions of the Clean Air
Act. The plea agreement includes an agreed-to sentence of 13 months in prison. The court will review the
terms of the agreement before determining whether or not to accept all the terms, including the sentence.
The case was investigated by the U.S. EPA's Criminal Investigation Division, Bureau of Criminal
Investigation's Environmental Enforcement Unit in the Ohio Attorney General's Office, the Ohio EPA Of-
fice of Special Investigations and RAPCA. It was prosecuted by Assistant U.S. Attorney Alex Sistla and
Special Assistant U.S. Attorney Brad Beeson with the U.S. EPA.
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Michigan Businessman Pleads Guilty to Conspiracy to Defraud the U.S. On August 19, 2013, CAL-
VIN HALL, the former vice president of Detroit, Michigan-based XCEL Construction Services, Inc., a
construction management firm, entered a plea of guilty in federal district court as part of the ongoing fed-
eral investigation and prosecution involving the Garden View Estates public housing project in Detroit.
According to court documents, Hall and others prepared and submitted a proposal for XCEL Con-
struction Services, Inc. which included false information. Based upon the false documents, XCEL Con-
struction Services, Inc. was awarded a contract worth more than $11 million to act as the construction
manager of the infrastructure phase of the Garden View Estates public housing project, which was funded
by a $24 million grant from the U.S. Department of Housing and Urban Development (HUD). At the time,
Hall was the vice president of XCEL Construction Services.
During the plea hearing, Hall stated that he conspired with Michael Woodhouse, the president of
XCEL Construction Services, Inc., and Bobby W. Ferguson, the founder and original owner of XCEL
Construction Services, Inc.
Under the plea agreement, Hall faces up to 18 months of imprisonment, as well as a fine of up to
$40,000. In addition, Hall agreed to forfeit more than $2.2 million in assets, including multiple bank ac-
counts and certificates of deposit seized from XCEL Construction Services, Inc. during the course of the
federal investigation.
The case was investigated by EPA's Criminal Investigation Division. It is being prosecuted by As-
sistant U.S. Attorneys J. Michael Buckley, Bruce Judge and Rita Foley.
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Mountains of soil brought to the HUD site.
EPA Bulletin August 2013 11
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Trials (Back to Quick Links)
International Shipping Corporation and Two Engineers Convicted in 'Magic Pipe' Case in Virginia
-- On August 8, 2013, DIANA SHIPPING SERVICES, S.A., a Panamanian corporation headquartered
in Greece, IOANNIS PROKAKIS and ANTONIOS
The "magicpipe" that would bypass the oily water separator and
discharge oil-contaminated waste water.
BOUMPOUTELOS, both citizens of Greece,
were convicted in federal district court for the
Eastern District of Virginia after an 12-day
bench trial on charges related to the illegal
discharge of waste oil and oil-contaminated
waste water from the M/V Thetis, a cargo ves-
sel operated by Diana Shipping Services. All
the defendants were convicted of conspiracy,
knowing failure to fully maintain an oil record
book, falsification of records and concealing
tangible objects in a federal investigation. In
addition, Prokakis was also convicted of ob-
struction of justice for ordering crewmembers
to lie to U.S. Coast Guard inspectors on board
the ship. The guilty verdicts were handed
down by U.S. District Judge Mark S. Davis of
the Eastern District of Virginia.
Diana Shipping Services, S.A. faces a maximum fine of $5.5 million and five years of proba-
tion. Prokakis and Boumpoutelos face a maximum sentence of five years for the conspiracy conviction,
six years per failure to maintain an oil record book conviction, and 20 years per falsification of record
conviction. Prokakis faces an additional five year sentence for obstruction of justice. All three defen-
dants will be sentenced on November 8.
Diana Shipping Services, S.A., Prokakis, and Boumpoutelos, were indicted on May 22, 2013, in
an 11-count superseding indictment alleging the illegal discharging of waste oil and oil-contaminated
waste water in violation of the Act to Prevent Pollution from Ships. In September 2012, crewmembers of
the M/V Thetis reported that the vessel was discharging its bilge waste and sludge illegally by various
means, including a "magic pipe" that bypassed the oily water separator. Coast Guard inspectors boarded
the vessel when it entered port in Norfolk and discovered the "magic pipe" and that the oily water separa-
tor was non-functioning. The inspectors were also presented with an oil record book that contained false
entries made by the ship's Chief Engineer Prokakis and the Second Engineer Boumpoutelos. During the
inspection, Prokakis lied to inspectors about the "magic pipe" and told other members of the engineering
crew to not disclose its existence to the Coast Guard inspectors.
The case was investigated by EPA's Criminal Investigation Division and the Coast Guard Investi-
gative Service. Assistant U.S. Attorney Joseph L. Kosky of the Eastern District of Virginia and Trial At-
torney Kenneth E. Nelson of the Environmental Crimes Section of the Justice Department's Environment
and Natural Resources Division are prosecuting the case on behalf of the United States.
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EPA Bulletin August 2013 12
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Indictments/Informations (Back to Quick Links)
Three North Carolina Water Treatment Plant Employees Indicted for Unlawful Pollutant Discharge -
- On August 6, 2013, BOBBY JOE SILVERS, JOHN COLEMAN CARVER III, and JOSEPH KYLE
ORR, maintenance employees at the town of Robbinsville, North Carolina's water treatment plant, were
indicted in federal district court for the Western District of North Carolina for unlawfully, intentionally and
knowingly discharging a sludge generated by aluminum sulfate, commonly called "alum sludge" , a pollut-
ant, into Long Creek which flows into the Cheoah River, a navigable water of the U.S. in violation of the
Clean Water Act's National Pollutant Discharge Elimination System.
According to the indictment, on or about August 8, 2012, Carver and Orr, with the knowledge and
consent of Silvers, their supervisor, dumped approximately 4,000 gallons of the alum sludge into a ditch
adjacent to Long Creek, using a pump truck owned by the town of Robbinsville. The dumping caused a fish
kill along approximately 5,000 feet of Long Creek.
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Three Michigan Men Charged with Asbestos-Related Offenses - On August 29, 2013, ROY C.
BRADLEY, SR., GERALD A. ESSEX, and RODOLFO RODRIGUEZ, all of Bay City, Michigan, were
charged in federal district court for allegedly mishandling asbestos at a building used by the Bay City Acad-
emy charter school.
Bradley and Essex worked together and with others to convert a former church into Bay City Acad-
emy. In the process, prosecutors contend the pair "knowingly failed to remove and cause the removal of all
regulated asbestos-containing material from that facility in accordance with the National Emission Stan-
dards for Hazardous Air Pollutants." Bradley and Essex were arraigned on four counts of illegally distribut-
ing and handling asbestos. Rodriguez was charged as a codefendant on single counts of tampering with wit-
nesses, victims or informants, and making false declarations to a grand jury.
Prosecutors allege Bradley and Essex broke the law during renovations at the Madison Avenue
building, a former church, from Aug. 18, 2010, through Sept. 2, 2011. Rodriguez, a carpenter who also
worked on the renovations, testified before a grand jury on Jan. 23, 2013. Prosecutors allege he deliberately
made false statements regarding the amount of asbestos-containing material that had been removed from the
church and gave misleading statements as to the identities of those doing the removal.
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California Man and Woman Charged with Discharge of Pollutant into U.S. Waters - On August 12,
2013, it was announced that SEAN CLARK and DEVORAH LOPEZ, both of Hacienda Heights, Califor-
nia, doing business as Glencoe Camp Resort II, had been indicted in federal district court for the District of
South Dakota by a federal grand jury on July 17, 2013, for discharging a pollutant from a point source
into a water of the United States. The indictment alleges that in both 2011 and 2012 the defendants dis-
charged fill material into Bear Butte Creek. They appeared before a magistrate judge August 12, 2013, and
pled not guilty to the indictment. The maximum penalty upon conviction is three years of imprisonment,
not less than $5,000 nor more than $50,000 fine per day of violation, or both; one year of supervised re-
lease, an additional year of supervised release upon revocation; and a mandatory $100 each special assess-
ment to the Federal Crime Victims Fund. Restitution may also be ordered. The charge is merely an accu-
sation, and Clark and Lopez are presumed innocent until and unless proven guilty.
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EPA Pub. 310-N-13-008 EPA Bulletin August 2013 13
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