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Indictments/
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Environmental Crimes
Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
This bulletin summarizes publicized investigative activity and
adjudicated cases conducted by OCEFT Criminal Investigation
Division special agents, forensic specialists, and legal support staff.
October 2014
In This Edition:
• Roberts Chemical Company, Inc. — Region 1
• Tier NY, LLC — Region 2
• Trans Energy, Inc. — Region 3
• John W. Shelton — Region 3
• New Nautical Coatings, Inc., Erik Norrie, David Norrie, Jason Revie,
Tommy Craft — Region 4
• Terry Williams — Region 5
• Christopher L. Gattarello, William S. Jackson, Jr., Robert A. Shaw, Sr.,
Anthony Gattarello, Axelrod Rubbish Recycling, Reach Out Disposal —
Region 5
• Carl Kieser — Region 5
• Kevin Branch, Danielle Roussel — Region 6
• Kiedock Kim — Region 9
&EPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-14-010
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Defendant Summary
Region
Defendants
Case Type/Status
Region 1
Roberts Chemical Company, Inc.
CAA/Failed to develop and implement a risk manage-
ment plan
Region 2
Tier NY. LLC
CAA/Negligent endangerment
Region 3
Trans Energy, Inc.
CWA/lllegal dumping of pollutants into waterways
Region 3
John W. Shelton
CWA/Tampering with water samples
Region 4
New Nautical Coatings, Inc., Erik
Norrie, David Norrie, Jason Revie,
Tommy Craft
FIFRA/Unlawful scheme to sell an unregistered pesti-
cide and obstruction of justice
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EPA Bulletin—October 2014
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Defendant Summary
Region
Defendants
Case Type/Status
Region 5
Terry Williams
CAA/lllegal dismantling and scrapping of asbestos-
containing materials and release of ozone depleting
substances
Region 5
Christopher Gattarello, William S.
Jackson, Jr., Robert A Shaw, Sr.,
Anthony Gattarello, Axelrod Rub-
bish Recycling, Reach Out Dispos-
al
CAA/Failure to remove asbestos prior to building
demolition, wire fraud, money laundering, defraud-
ing, illegally dumping garbage, operating solid waste
disposal without a license, open dumping
Region 5
Carl Kieser
FIFRA/Mail fraud, illegal application of a pesticide
Region 6
Kevin Branch, Danielle Roussel
CWA/Malfeasance in office and maintaining false
public records
Region 9
Kiedock Kim
CWA/Negligent discharge of pollutants into U.S. wa-
ters
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EPA Bulletin—October 2014
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Sentencing
Michigan Man Sentenced for Clean Air Act Crimes - On October 24, 2014, TERRY WILLIAMS, of Detroit,
Michigan, was sentenced to 27 months in federal prison for criminal violations of the Clean Air Act. Williams
had plead guilty to the violations that were in connection with the dismantling and scrapping of the former
AMC headquarters on Plymouth Road in Detroit. The work disturbed asbestos-containing materials and
released ozone depleting substances.
In 2012, Williams hired crews to remove salvageable metal from the facility, which included the
dismantling of air conditioning units charged with R-22 refrigerant, an ozone-depleting substance. Williams'
crews dismantled 50 to 70 of these air conditioning units, including many large rooftop units, causing
releases of R-22 refrigerant into the environment.
Williams also arranged for other fixtures on the property to be scrapped, ordering crews to cut and
remove pipes he knew to be insulated with regulated asbestos- containing insulation. These insulated pipes
were removed without following the work practice requirements under the federal asbestos regulations,
including failing to properly wet the asbestos-containing materials to prevent asbestos fibers from becoming
airborne and failing to secure the materials for proper disposal.
The case was investigated by EPA's Criminal Investigation Divison. It was prosecuted by the U.S.
Attorney's Office in the Eastern District of Michigan by Assistant U.S. Attorney Jennifer Gorland and Special
Assistant United States Attorney David Mucha.
Back to Defendant Summary
Page 4
EPA Bulletin—October 2014
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Sentencing
Massachusetts Company Fined. Placed on Probation for Violating CAA - On October 6, 2014, ROBERTS
CHEMICAL COMPAMY, INC. of Attleboro, Massachusetts, was fined $200,000 and placed on probation for
five years in federal district court for the District of Rhode Island for violating the Clean Air Act. It is also
required to issue a public apology. The company failed to develop and implement a Risk Management Plan
(RMP) to minimize the chance of release of ethyl ether from its former Pawtucket, Rhode Island, facility, and
to protect workers, the community and emergency and first responders in the event of a release or fire
involving ethyl ether. EPA regulations require a company's RMP to include a "worst case" response plan.
Ethyl ether is a volatile, extremely flammable liquid chemical. EPA regulations require facilities storing more
than 10,000 Ibs. of ethyl ether to develop and implement a RMP. An investigation by EPA determined that in
November and December 2008, Roberts Chemical Company, Inc. failed to develop and implement a RMP
while storing 27,467 Ibs. of ethyl ether at their former facility at 258 Pine Street in Pawtucket.
Roberts Chemical Company, Inc. is in the business of storing, distributing and repackaging chemicals,
some of which are designated as extremely hazardous. The company pleaded guilty in August 2014 to
violating the Clean Air Act.
The case was investigated by the U.S. EPA Criminal Investigation Division and Homeland Security
Investigations, with the assistance of the REFP Unit of the Office of Environmental Stewardship with EPA's
Region 1 office. It was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
Back to Defendant Summary
Stored Chemicals identified in an EPA Inspection at Roberts Chemical Company.
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EPA Bulletin—October 2014
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Sentencing
Illinois Man Convicted of Mail Fraud and Tax Evasion Related to Illegal Application of A Pesticide -- On
October 31, 2014, CARL KIESER, of Gibson City, Illinois, was convicted of mail fraud and illegal application of a
pesticide inconsistent with its labeling. Sentencing is scheduled for February 19, 2015. Kieser had previously
been convicted of four counts of tax evasion.
Kieser owned and operated Aquatic Control of Illinois, a
business located at his Gibson City Fishing and Camping
Club. During the trial, the government presented
evidence to establish that from June 2006 to September
2012, Kieser purchased large quantities of Diuron 80DF, a
pesticide registered with the U.S. EPA for the control of
land-based weeds. The EPA-approved labeling for Diuron
80DF warns that the chemical should not be applied
directly to water due to its toxicity to fish and other
aquatic wildlife.
As part of the scheme to defraud, Kieser manufactured,
Bags of Diuron located during a search warrant at Carl advertised, sold, and distributed a product he called Pond
Kieser's property in 2012. Clear Plus. Kieser produced Pond Clear Plus by mixing
Diuron 80DF with other ingredients, including a blue pond
dye. Kieser advertised Pond Clear Plus in newspapers and magazines and represented that he had 20 years of
experience in lake management and consulting. The advertisements for Pond Clear Plus falsely and
fraudulently represented that Pond Clear Plus could control lake weeds and algae "Mother Nature's Way,"
with "No Chemicals," using a "biological method with live bacteria that dissolves plant nutrients, black muck,
and rotten egg odor." Kieser also falsely and
fraudulently represented to customers that
Pond Clear Plus contained no chemicals. In
fact, as Kieser knew full well, Pond Clear Plus
contained the chemical pesticide Diuron 80DF,
which was prohibited by its EPA-approved
labeling from being applied directly to water.
As a result of his false advertising and
representations, Kieser sold and distributed
Pond Clear Plus to customers from
approximately July 2007 to September 2012.
Kieser obtained more than $400,000 in
proceeds from customers from the sale of
Pond Clear Plus, but failed to pay any federal
income tax on his profits from 2008 to 2011.
As a further part of the scheme, Kieser
provided Pond Clear Plus to his customers via
Federal Express or some other means in 2.5 gallon jugs without any labels, including any labels informing
customers that Pond Clear Plus contained Diuron 80DF and should not be applied directly to water. To the
A number of dead fish in a neighborhood pond following the use of
the Pond Clear Plus product from Carl Kieser in 2008.
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EPA Bulletin—October 2014
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Sentencing
contrary, Kieser advised customers that Pond Clear Plus contained no chemicals and should be applied by
pouring it directly into the customer's pond or lake. Moreover, Kieser himself on occasion directly applied
Pond Clear Plus to lakes or ponds for his customers. As a result, Diuron 80DF was directly applied to ponds
and lakes throughout the United States in direct contravention of its EPA-approved labeling. Additionally,
multiple customers experienced fish kills following the application of Pond Clear Plus to their ponds and
lakes.
Following the jury's return of the guilty verdicts, Kieser was allowed to remain on release under
conditions of bond, including that he no longer sell his product, Pond Clear Plus.
The maximum statutory penalty for each count of mail fraud is 20 years in prison and a fine of up to
$250,000. The maximum statutory penalty for tax evasion is five years in prison and a fine of up to $100,000.
The maximum statutory penalty for applying a pesticide inconsistent with its labeling is one year in jail and a
fine of up to $50,000.
The case was investigated by EPA's Criminal Investigation Division and the Internal Revenue Service
with the assistance of the Illinois Department of Natural Resources, the Illinois Environmental Protection
Agency, and the Illinois Department of Agriculture. It is being prosecuted by Assistant U.S. Attorney Eugene
L Miller.
Back to Defendant Summary
This is one of the many jugs of Pond Clear Plus that was shipped from Carl Kieser. This par-
ticular unlabeledjug was purchased during an EPA undercover operation. Testing of the
contents ultimately showed that there was a high concentration of Diuron. The ring of gran-
ular Diuron can also be seen in the white layer on the bottom of the container.
Page?
EPA Bulletin—October 2014
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Plea Agreements
the top of the photo was constructed in 2010 and is the basis
for one of the counts in the criminal information.
Trans Energy Convicted of Clean Water Act Violations - On October 1, 2014, TRANS ENERGY, INC., entered
guilty pleas in federal district court for the Northern District of West Virginia to three violations of the Clean
Water Act in connection with its natural gas drilling
activity in Northern West Virginia.
Trans Energy pled guilty to three counts of
"Negligent Discharge of Pollutants without a Permit,"
admitting that it dumped pollutants into waterways
found in Marshall County, West Virginia. The company
agreed that it discharged materials such as rock, sand,
soil and stone into streams at Wolf Run, the North
Fork of Grave Creek, and the Left Fork of Maggoty
Run, all for the purpose of creating impoundments.
| The water from the impoundments was subsequently
The impoundments constructed on Robert Christopher's prop- used by Trans Energy for Marcellus Shale drilling activ-
erty. The pond at the bottom was constructed in 2009 and is jty. Trans Energy admitted that it failed to properly
included in the civil enforcement action. The impoundment at trajn and supervjse jts employees and that it relied
upon the unsubstantiated representations of a nearby
property owner when determining whether environ-
mental laws were being followed.
The plea agreement calls for Trans Energy to pay a fine of $200,000 for each conviction, for a total
fine of $600,000. It also requires that Trans Energy be placed onto probation for two years and be under the
supervision of the Court during that time period. The parties agreed that separate violations committed by
Trans Energy and occurring in connection with two other impoundments constructed in Marshall County
would be addressed by civil penalties.
The Clean Water Act, also known as the Fed-
eral Water Pollution Control Act, was enacted by
Congress to restore and maintain the integrity of the
Nation's waters. It prohibits the discharge of any
pollutant from a point source into the waters of the
United States without a permit. Discharges of
dredged or fill material into waters of the United
States are prohibited unless authorized by a permit
issued by the U.S. Army Corps of Engineers.
The case was investigated by EPA's Criminal
Investigation Division. It is being prosecuted by Da-
vid J. Perri, Assistant United States Attorney, and Per- The impoundment for the Goshorn well pad constructed in
ry D. McDaniel, Special Assistant United States Attor- 2011. The white pipe at the bottom leads from the impound-
ney.
Back to Defendant Summary
ment to the well pad.
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EPA Bulletin—October 2014
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Plea Agreements
West Virginia Lab Manager Pleads Guilty to Tampering with Water Samples - On October 9, 2014, JOHN W.
SHELTON, of Daniels, West Virginia, pled guilty in federal district court for the Southern District of West
Virginia to conspiring to violate the Clean Water Act. Shelton was employed by Appalachian Laboratories in
Daniels as a field technician and manager. Appalachian Laboratories performed water sampling and analysis
for coal mining operations to ensure that discharges of pollutants into public waterways were within
permitted limits. He faces up to five years imprisonment and a fine of $250,000 when he is sentenced on
February 26, 2015.
Shelton admitted that he and other employees tampered with water samples to make them appear
to be within permissible levels. Shelton admitted that they diluted samples by adding distilled water, and
substituted water samples from the "honeyhole," designated as such because the samples were always
within permissible limits. Each time samples were diluted or water was substituted, Shelton allowed
excessive pollutants to be discharged from mining operations into adjacent creeks and rivers.
Shelton also admitted that from 2008-2013, he and other Appalachian Laboratories employees failed
to place samples on ice as required by law, and instead kept them in their trucks all day, compromising the
integrity of the samples. To avoid detection by WVDEP, Shelton and other employees placed ice in their
coolers on known inspection days to make it appear as though this was their regular practice.
The case was investigated by EPA's Criminal Investigation Division and the Federal Bureau of
Investigation. It is being prosecuted by Assistant United States Attorneys Blaire L. Malkin and Larry R. Ellis.
Back to Defendant Summary
Page 9 EPA Bulletin— October 2014
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Plea Agreements
New York Corporation Pleads Guilty to CAA Violation - On October 29, 2014, TIER NY, LLC, located in
Niagara Falls, New York, pleaded guilty in federal district court for the Western District of New York to
negligent endangerment under the Clean Air Act. The charge is punishable by a fine of $200,000 and a
possible term of probation of up to five years. Sentencing is scheduled for January 8, 2015. Tier, NY, LLC is
engaged in the business of cleaning tanks that once carried hazardous materials, including titanium
tetrachloride. Titanium tetrachloride, when combined with water, forms hydrochloric acid gas-a hazardous
air pollutant listed under the Clean Air Act.
The charges stem from an incident that occurred on June 11, 2013. Tier employees cleaned a tank
that last contained titanium tetrachloride. During the cleaning process, employees introduced a caustic
solution with an unverified concentration of sodium hydroxide and water into the vessel and negligently
caused the release of an unknown quantity of hydrochloric acid gas. The gas then travelled to an adjacent
business and placed other people in imminent danger of death or serious bodily injury.
The case was investigated by EPA's Criminal Investigation Division, and the New York State
Department of Environmental Conservation Police, BECI. It is being prosecuted by Assistant U.S. Attorney
Aaron J. Mango.
Back to Defendant Summary
The tank that Tier employees cleaned out which caused the release of hydrochloric gas.
Page 10
EPA Bulletin—October 2014
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Plea Agreements
California Man Pleads Guilty to Negligent Discharge of Pollutants into U.S. Waters -- On October 16, 2014,
KIEDOCK KIM, of Biggs, California, a former mill superintendent for the French Gulch Mine pleaded guilty
I to charges related to polluting federal
property in Shasta County, California. Kim
admitted to depredation of U.S. property
and negligent discharge of a pollutant into
U.S. waters. The charges arose out of
alleged actions in the mid-2000s. He is set
to be sentenced Jan. 15. He faces up to 10
years in prison and $375,000 in fines.
Kim had been accused of
misrepresenting the wastewater
treatment system at the mine as closed
circuit, It had actually spilled the
j wastewater, which contained arsenic and
lead, into abandoned mines, often on land
! owned by the Bureau of Land
Management. Kim also ordered
construction of a "substandard" pipe
system that dumped liquid waste into an abandoned mine on BLM property. On one occasion in 2006, the
pipe system broke and up to 10 tons of mine tailings flowed into Scorpion Gulch Creek, which flows into
Whiskeytown Lake.
Back to Defendant Summary
Plume from French Creek flowing into Clear Creek.
Mine tailings from the 2006 spill flowing from French Creek into Clear Creek.
Page 11
EPA Bulletin—October 2014
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Indictments/Information!
Two Florida Corporations and Four Tampa Residents Indicted in Scheme to Unlawfully Sell an Unregistered
Pesticide and Obstruct Justice - On October 3, 2014, NEW NAUTICAL COATINGS, INC., d/b/a "Sea Hawk
Paints," Sea Hawk Refinish Line, Inc., d/b/a "Refinish Line Auto Supplies," of Clearwater, Florida, and
Hillsborough County residents ERIK NORRIE, DAVID NORRIE, JASON REVIE, and TOMMY CRAFT were indicted
in federal district court for the Southern District of Florida in a scheme to unlawfully sell an unregistered
pesticide and obstruct justice. David Norrie, Jason Revie, and Tommy Craft had their initial appearances on
February 11, 2013, in Tampa.
Specifically, each defendant is charged with one count of conspiracy to (1) impede, impair, obstruct,
and defeat the lawful functions of the EPA; (2) sell an unregistered pesticide; (3) violate an EPA cancellation
order; and (4) obstruct justice and a separate conspiracy to commit mail and wire fraud. New Nautical
Coatings, Refinish Line, David Norrie, Erik Norrie and Jason Revie are also charged with one count of wire
fraud and one count of misuse of a government seal. New Nautical Coatings and David Norrie are also
charged with one count of obstruction of justice, and New Nautical Coatings and Erik Norrie are charged with
two other counts of obstructing justice. New Nautical Coatings, David Norrie, Erik Norrie, Jason Revie, and
Tommy Craft are also charged with four counts of the sale of an unregistered pesticide.
According to the indictment, New Nautical manufactured a paint called Biocop Anti-Fouling Coating
which contained tributyltin methacrylate, also known as "TBT," a chemical compound which was found to
have significant harmful effects on marine life. TBT based paints such as Biocop are pesticides subject to
registration with the EPA. On or about December 1, 2005, the EPA cancelled New Nautical's registration for
Biocop, making it unlawful for New Nautical to manufacture Biocop for sale in the United States after
December 1, 2005, or sell Biocop in the United States after December 31, 2005. Despite the cancellation,
New Nautical Coatings, through defendants David Norrie, Erik Norrie Jason Revie, Tommy Craft and others
continued to manufacture and sell Biocop in the United States. In order to manufacture and sell Biocop after
the cancellation date, New Nautical Coatings, through defendants David Norrie, Erik Norrie, Jason Revie,
Tommy Craft, and others, misled their customers and the EPA regarding their continued production of Biocop
after the cancellation date. In furtherance of the conspiracy, the defendants took steps to make it falsely and
fraudulently appear that New Nautical had earmarked and sold significant amounts of Biocop to distributors
prior to December 31, 2005. In truth, the supposedly allocated Biocop had not been manufactured by
December 1, 2005, and did not exist to be sold by December 31, 2005. In furtherance of the conspiracy,
Refinish Line, David Norrie, Erik Norrie, and Jason Revie created and caused to be created false and
fraudulent purchase orders and invoices for orders of Biocop that Refinish Line did not sell, distribute, or ship
to the customers and companies listed in the purchase orders and invoices. New Nautical, David Norrie, and
Erik Norrie took other steps to conceal the unlawful production and sale of Biocop, including the falsification
of reports submitted to the EPA and directing a witness to lie to the EPA. By producing and selling Biocop, an
unregistered pesticide, for domestic use and application, and by concealing such acts from the EPA and
customers, New Nautical, Refinish Line and their co-conspirators derived pecuniary gains in excess of
$2,000,000. If convicted, the corporate defendants, New Nautical Coatings, Inc. and Sea Hawk Refinish
Line, Inc., face a fine of up to $500,000 for each felony conviction, and a fine of $200,000 for each of
conspiracy to defraud the government, up to twenty years in prison for each count of conspiracy to commit
conviction. If convicted, the individual defendants face up to five years in prison for each count of conspiracy
Page 12 EPA Bulletin—October 2014
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Indictments/Information!
to defraud the government, up to twenty years in prison for each count of conspiracy to commit mail and
wire fraud, wire fraud, and obstruction of justice, up to five years in prison for each count of the misuse of a
government seal, and up to one year in prison for each count of the sale of an unregistered pesticide.
The case was investigated by EPA's Criminal Investigation Division, EPA's Office of Inspector General,
and FWCC. The case is being prosecuted by Assistant U.S. Attorney Alejandro 0. Soto. An indictment is only
an accusation and the defendant is presumed innocent until proven guilty.
Back to Defendant Summary
Page 13
EPA Bulletin—October 2014
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Indictments/Information!
Two Louisiana Parish Government Employees Indicted for Improper Failure to Collect and Record Water
Samples -- On October 20, 2014, KEVIN BRANCH, of LaPlace, Louisiana, and DANIELLE ROUSSEL, of Paulina,
Louisiana, were both charged with malfeasance in office and filing or maintaining false public records by a St.
John the Baptist Parish Grand Jury. They were parish government employees and were indicted for their role
in failing to properly collect and record water samples from testing sites where a brain-eating
amoeba (Naegleriafowleri) was found in the water system.
According to the grand jury indictment, the charges stem from allegations that the two not only failed
to perform a duty lawfully required of a public employee in completing necessary water testing, but they also
falsified information on water testing logs they were required to maintain.
As part of their job duties, Branch and Roussel were tasked with collecting water samples from at
least two locations, including the Lions Water Treatment Plant in Reserve and an additional site in Mt. Airy,
to ensure that the public water met specific quantities of residual chlorine as required by Louisiana law. The
employees were to truthfully record those findings on a daily log, which was to be filed with the Department
of Health and Hospitals each month.
According to the indictment, through a Louisiana State Police investigation it was determined that
Global Positioning Systems (GPS) permanently attached to the parish vehicles assigned to Branch and Roussel
showed that the two did not collect the samples that they attested to. The GPS data showed that on
numerous days where the employees alleged to have tested water samples, they were not near the site of
testing.
The case was investigated by EPA's Criminal Investigation Division and the Louisiana State Police. It is
being prosecuted by the Louisiana Attorney General's Office. An indictment is only an accusation and the
defendant is presumed innocent until proven guilty.
Back to Defendant Summary
Page 14
EPA Bulletin—October 2014
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Indictments/Information!
Ohio Men and Michigan Man Indicted for Violating CAA. Illegally Dumping Garbage and Defrauding
Company --On October 2, 2014, CHRISTOPHER L. GATTARELLO, of Cleveland, Ohio, and another Cleveland
man were charged in federal district court for the Northern District of Ohio with violating the Clean Air Act by
failing to remove asbestos prior to demolishing a former factory in Cleveland. They were also charged with
defrauding a Louisiana company out of nearly $1.2 million. At the same time, state charges were filed in
Cuyahoga County Common Pleas Court against Gattarello and two men, charging them with illegally dumping
garbage in Cleveland. Besides Gattarello, the others indicted were WILLIAM S. JACKSON, JR., of Cleveland,
and ROBERTA. SHAW, SR., of Ypslanti, Michigan.
Gattarello owned and controlled several municipal garbage-hauling businesses in greater Cleveland,
including Reach Out Disposal, All Points Rubbish Disposal and Axelrod Rubbish Recycling. Shaw worked for
Gattarello at those companies, while Jackson operated a Cleveland building demolition company. Gattarello
and Jackson were each charged with two counts of violating the Clean Air Act. Additionally, Christopher
Gattarello was charged with in federal court with one count each of conspiracy to commit wire fraud and
money laundering. Shaw faces one count of conspiracy to commit wire fraud.
According to the four-count federal indictment: In June 2011, Gattarello, on behalf of All Points,
leased the former National Acme facility in Cleveland. The 570,000 square-foot facility was built in 1917 and
was used for manufacturing for nearly a century. It is located near many homes and a school. Gattarello
represented to the lessor that paper and cardboard waste would be recycled at the facility.
In July 2011, a company estimated removing asbestos from the facility would cost $1.5 million.
Around August 2011, Gattarello directed paper and cardboard waste, as well as municipal garbage, be
delivered to the facility for recycling. Over the next several months, more garbage, paper and cardboard
were delivered than could be handled, and Gattarello had the waste moved inside. By April 2012, most of the
facility was filled with garbage.
In May 2012, Gattarello, on behalf of Reach Out, entered into a contract to purchase the facility.
Gattarello intended to demolish the facility and sell any metal removed as scrap. In July 2012, Jackson
submitted a notice of demolition with the Cleveland Division of Air Quality stating there was no asbestos in
the National Acme facility. About 10 days later, the CDAQ rejected Jackson's notice because it was
incomplete and stated demolition "may not begin" until a proper notice was submitted and approved. About
10 days after that, on July 21, 2012, Jackson began demolition at Gattarello's direction.
Asbestos fibers were released into the environment during demolition. Debris accumulated outside
the facility from demolition and asbestos in the piles were exposed to the wind and elements.
In the state's case, Christopher Gattarello, Axelrod Rubbish Recycling, and Reach Out Disposal each
were indicted on the same five counts — two counts of illegal open dumping, two counts of operating a solid
waste landfill without a license, and one count of operating a solid waste transfer facility without a license.
The charges stem from alleged solid waste violations at the former National Acme facility at 965 Wayside
Avenue in Cleveland.
Also in the state's case, Christopher Gattarello's brother, ANTHONY GATTARELLO, of Highland
Heights, Ohio, was indicted on one count of illegal open dumping and one count of operating a solid waste
disposal facility without a license. Jackson was indicted on one count of illegal open dumping. The charges
relate to alleged violations at the former National Acme facility.
Page 15 EPA Bulletin—October 2014
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Indictments/Information!
AIM Business Capital LLC is a financial company based in Louisiana that specializes in "factoring" - a
practice in which AIM purchases accounts receivable, such as invoices billed to customers for goods and
services. Businesses that factored their receivables with AIM received immediate cash. AIM, like other
factoring companies, purchase the receivables at a percentage discount of the invoice. AIM made a profit by
collecting the full amount of the invoice from the business's customers, according to the federal indictment.
In 2011 and 2012, Shaw, on behalf of Reach Out and Axelrod, entered into contracts with AIM for the
purchase of receivables from Reach Out and Axelrod. Gattarello directed the creation of false and fraudulent
invoices for the companies and directed that they be submitted to AIM. In some cases, Gattarello and Shaw
directed other employees to create false letters attesting to the validity of the invoices, which Shaw
forwarded to AIM. The loss to AIM was nearly $1.2 million, according to the federal indictment.
The case was investigated by EPA's Criminal Investigation Division, the Ohio EPA, the Ohio Bureau of
Criminal Investigation, and the Internal Revenue Service. It is being prosecuted by Assistant United States
Attorneys Brad Beeson and James V. Moroney. An indictment is only an accusation and the defendant is
presumed innocent until proven guilty.
Back to Defendant Summary
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EPA Bulletin—October 2014
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