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Defendant Summary
Sentencing
Plea Agreements
Indictments/
Informations
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.
December 2014
In This Edition:
• Freedom Industries, Inc., Gary L. Southern, Dennis P. Farrell, William E.
Tis, Charles E. Herzing, Robert J. Reynolds, Michael E. Burdette —
Region 3
• New Nautical Coatings, Inc., Erik Norris, David Norris, Jason Revie,
Tommy Craft — Region 4
• Oxford Mining Company, LLC — Region 5
• Allen P. Chadderdon, Dean P. Tucker — Region 5
• Hernan Cortez Villasenor — Region 9
• Lachelle Rene Thrower — Region 9
• Noble Drilling (U.S.) LLC — Region 10
&EPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-14-012
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Defendant Summary
Region
Defendants
Case Type/Status
Region 3
Freedom Industries, Inc., Gary L.
Southern, Dennis P. Farrell, Wil-
liam E. Tis, Charles E. Herzing,
Robert J. Reynolds. Michael E.
Burdette
Various federal crimes related to the January 2014
chemical spill in West Virginia's Elk River
Region 4
New Nautical Coatings, Ind., Erik
Norrie, David Norrie, Jason Revie,
Tommy Craft
FIFRA/lnvolvement in scheme to unlawfully sell an
unregistered pesticide and obstruct justice
Region 5
Oxford Mining Company, LLC
Negligent failure to report violations of the compa-
ny's permit in connection with its coal mining opera-
tions
Region 5
Allen P. Chadderdon, Dean P.
Tucker
Fake Insurance Scheme Involving Underground Stor-
age Tanks
Region 9
Hernan Cortez Villasenor
FIFRA/Conspiring to manufacture, distribute and pos-
ess with intent to distribute marijuana on Ecological
Reserve
Region 9
Lachelle Rene Thrower
CAA/Selling False Asbestos Removal Training Certifi-
cates
Region 10
Noble Drilling (U.S.) LLC
CWA/Environmental and Maritime Crimes in Alaska
Page 2
EPA Bulletin—December 2014
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Sentencings
Two Florida Corporations and Four Residents Sentenced In Connection with Scheme to Unlawfully Sell an
Unregistered Pesticide and Obstruct Justice -- On December 5, 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 sentenced in federal district court for the Southern District of Florida for their involvement in a scheme
to unlawfully sell an unregistered pesticide and obstruct justice.
New Nautical Coatings, Inc. (New Nautical), which pled guilty to willfully conspiring to obstruct EPA,
was sentenced to pay a fine of $1,235,315.00, that constituted a disgorgement of the unlawful gains the
company derived from the offense. New Nautical was also sentenced to a three year period of probation,
which requires the company to complete an Environmental Compliance Program during that period of time.
David Norrie, who also pled guilty to willfully conspiring to obstruct EPA, was sentenced to five months in
prison and six months of home confinement. Erik Norrie, who pled guilty to willfully conspiring to knowingly
distribute and sell an unregistered pesticide, was sentenced to three months in prison. Sea Hawk Refinish
Line, Inc., who pled guilty to the same conspiracy, was sentenced to probation for one year. Jason Revie and
Tommy Craft previously pled guilty to knowingly distributing and selling an unregistered pesticide and were
each sentenced to a one year period of probation.
According to the superseding indictment and other court documents, New Nautical manufactured an
antifouling coating called Biocop, 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 March 30, 2005, EPA cancelled New
Nautical's registration for Biocop, making it unlawful for the company 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 order, New Nautical continued to produce Biocop for sale in the United
States from 2006 through 2009. In order to conceal this post-cancellation production of Biocop, New Nautical
employees were directed to change the batch numbers on cans of Biocop, which previously referenced the
date of production, to a series of numbers ending in "9999." During this time period, New Nautical used its
sales team and staff, including David Norrie, Erik Norrie, Jason Revie and Tommy Craft, to sell and distribute
unregistered Biocop in the Southern District of Florida and elsewhere in the United States, but invoiced those
sales through its sister company, Refinish Line. On May 22, 2009, after David Norrie sold 60 gallons of Biocop
to a customer in Broward County, Norrie directed the customer to tell EPA investigators that the customer
did not have Biocop, and that New Nautical did not sell Biocop. Roughly six months later, in November 2009,
EPA and Florida Fish and Wildlife agents and investigators executed a search warrant on New Nautical's
premises, and seized evidence which led to the indictment and conviction of the defendants.
The case was investigated by EPA's Criminal Investigation Division, EPA's Office of Inspector General,
and the Florida Fish and Wildlife County Commission. It was prosecuted by Assistant U.S. Attorneys
Alejandro 0. Soto and Maria Medetis.
Back to Defendant Summary
EPA Bulletin—December 2014
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Sentencings
Drilling Operator Sentenced for Environmental and Maritime Crimes in Alaska -- On December 19, 2014,
NOBLE DRILLING, LLC was sentenced in U.S. District Court in Anchorage for committing eight felony
environmental and maritime crimes arising out of its
operation of the drill ship Noble Discoverer and the
drilling unit Kulluk. Noble will pay $12.2 million
dollars in fines and community service and serve a
four year period of probation during which time it
must implement a comprehensive Environmental
Compliance Plan. Noble's parent corporation, Noble
Corporation pic, headquartered in London, England,
will also implement an Environmental Management
System for all of its mobile offshore drilling units
worldwide. During the 2012 drilling season, the
Kulluk and the Noble Discoverer made several port
calls in Washington and Alaska on their way to a
drilling site in the Chukchi Sea. The Kulluk broke free
from its tow in bad weather and ultimately ran
aground off the coast of Unalaska. The Noble
Discoverer was towed from Dutch Harbor to Seward
due to failures with its main engine and other
equipment.
This case was investigated by the U.S. Coast
Guard Investigative Service and EPA's Criminal
Investigation Division and was prosecuted by the
Department of Justice's Environmental Crimes
Section and the United States Attorney's Office for
the District of Alaska.
Back to Defendant Summary
The Noble Discoverer
Page 4
EPA Bulletin—December 2014
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Sentencings
Ohio Mining Company Sentenced For EPA Violations - - On December 16, 2014 OXFORD MINING COMPANY,
LLC (OXFORD) was ordered to pay $650,000 in fines and community service for the negligent failure to
report violations of the company's permit in connection with its coal mining operations. Oxford was fined
$500,000 and ordered to pay $150,000 in community service as part of the sentence. The community service
payment will be split equally between the Ohio EPA and the National Park Foundation (NPF). The Ohio EPA
will use the money to study the watersheds in Southeast Ohio and the NPF will use the money to improve
and restore the waterways that are part of the Hopewell Culture National Historical Park, located near
Chillicothe, Ohio.
According to Court documents, Mr. Light was the Director of Environmental Compliance for Oxford
and as part of his job duties was responsible for reviewing Oxford's environmental compliance, including the
submittal of reports to the Ohio EPA. As part of their permit, Oxford is required to report to Ohio EPA permit
exceedances once they are discovered.
On numerous occasions between November 2007 and November 2011, Light submitted reports to
Ohio EPA that showed sampling results that were in compliance with permit limits, although he knew that
the sampling results actually showed violations of the applicable permit limits.
Oxford failed to adequately oversee the activities of Light, including those activities related to the
submittal of reports to Ohio EPA. Because of this failure, Oxford was unaware that discharges from its surface
mines were in excess of the permitted limits and that Light had submitted false statements to the Ohio EPA.
This case was a joint investigation by the Ohio Bureau of Criminal Investigation, Ohio EPA, the U.S.
EPA Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney J. Michael Marous and
Special Assistant U.S. Attorney Brad Beeson.
Back to Defendant Summary
EPA Bulletin—December 2014
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Sentencings
Toxic Marijuana Grow Nets 10-Year Prison Term -On December 1, 2014, HERNAN CORTEZ VILLASENOR
(CORTEZ), of Michoacan, Mexico, was sentenced to 10 years in prison for his involvement in a toxic
marijuana cultivation operation in the Greenhorn
Creek area of the Sequoia National Forest in Kern
County. Cortez was also ordered to pay $3,328 in
restitution to the U.S. Forest Service for the damage
caused by his marijuana cultivation operation.
On July 7, 2014, Cortez pleaded guilty to
conspiring to manufacture, distribute and possess
with intent to distribute marijuana and distributing
unregistered pesticides, in violation of the Federal
Insecticide, Fungicide, and Rodenticide Act (FIFRA).
According to court documents, Cortez supplied toxic
rat poison and other chemicals and materials to
support the 8,876 marijuana plants growing on public
land. The site sustained extensive damage as a result
of the cultivation activities. Native oak trees and other
vegetation were cut down or otherwise killed to make
room for the marijuana plants. The soil was tilled, and
fertilizers and pesticides, including Fosfuro de Zinc, a
common Mexican rat poison containing zinc
phosphide, were spread throughout the site. Law
enforcement officers also found 30 containers of
Fosfuro de Zinc at Cortez's residence in Arvin,
California.
The EPA has designated zinc phosphide as a
restricted-use pesticide, which means that it may only
be purchased and used by, or under the supervision
of, a certified applicator. Zinc phosphide is banned for
residential sale due to its acute toxicity. A single
swallow can be fatal to a small child.
Upon completion of his prison sentence, Cortez is subject to deportation to Mexico.
This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement
Administration, the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations
(HSI), U.S. EPA's Criminal Investigation Division, and the Kern County Sheriff's Office. Assistant United States
Attorney Karen Escobar prosecuted the case.
.
Smuggled Mexican pesticides involved in this investigation
Back to Defendant Summary
PageS
EPA Bulletin—December 2014
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Plea Agreements
Michigan Insurance Agents Plead Guilty In Statewide Fake Insurance Scheme Involving Underground
Storage Tanks —The Environmental Protection Agency and the Federal Bureau of Investigation have
uncovered and disrupted a scheme involving the fabrication of insurance certificates by ALLEN P.
CHADDERDON, of Williamston, Michigan, and DEAN P. TUCKER, of Lansing, Michigan. Insurance
certificates were sold to owners and operators of underground storage tanks ("USTs") throughout the state
of Michigan. The fake documents made it appear that certain USTs were in compliance with laws requiring
owners and operators of USTs to demonstrate the ability to clean up any environmental contamination
caused by a leaking tank. Two insurance agents in Lansing, Michigan, have pled guilty for their roles in
creating and selling fake insurance certificates to owners and operators of USTs.
Federal and state law requires owners and operators of certain underground storage tanks to obtain
proof of financial assurance in the event of a release into the environment. Most owners and operators
comply with the law by obtaining an annual insurance policy that would cover up to $1 million in clean-up
costs and damages. The fake document scheme, which ran from 2011 to 2013, primarily involved gas
stations with underground storage tanks that were either uninsurable due to age or condition, or were
expensive to insure due to their age. Rather than replace the aging tanks, UST owners and operators
purchased fake insurance certificates created by two Lansing insurance agents that made it appear to federal
and state UST inspectors that the USTs were in compliance with the law. In reality, those gas stations had no
insurance in the event of a leak.
Immediately upon disrupting the scheme, the EPA and State of Michigan sought to identify which
USTs were not in compliance with the financial assurance requirements to mitigate the risk of harm to the
environment. Gas stations that failed to present a genuine insurance policy were shut down until the owner
or operator demonstrated compliance with the law.
Chadderdon and Tucker pled guilty in federal court to fabricating insurance certificates that they sold
to UST owners and operators. Federal law prohibits altering or fabricating documents with the intent to
impede, obstruct, or influence the proper administration of any matter that is within the jurisdiction of a
federal agency. Both defendants face a maximum of 20 years in prison for the offense, but the Court will
determine the sentence after considering the federal sentencing guidelines and the statutory sentencing
factors. On December 3, 2014, Allen Chadderdon was sentenced to one day credited as time served, one
year supervised release, and a $20,000 fine. Tucker will be sentenced on March 5, 2015.
The underground storage tank cases are being prosecuted by Assistant U.S. Attorney Christopher
O'Connor.
Back to Defendant Summary
Page 7 EPA Bulletin— December 2014
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Plea Agreements
California Asbestos Removal Trainer Pleads Guilty to Sale of False Certificates -On December 3, 2014,
LACHELLE RENE THROWER pled guilty to falsifying federal asbestos training certificates, admitting that
over a four-year period she falsely certified over a hundred workers as being trained and qualified to safely
remove asbestos.
According to court documents, Thrower was employed by an approved provider of asbestos removal
training. Any student seeking to be accredited to remove asbestos was required to complete four, eight-hour
days of training, and to pass a written examination. Thrower admitted that between May 14, 2010, and Au-
gust 5, 2014, she falsely certified 100-150 training certificates for asbestos workers who did not actually
attend the training courses or take the necessary exam. Thrower kept the money paid by the non-attending
trainees, and falsified the certificates by using an electronic signature of the authorized trainer. Her false cer-
tifications caused her employer to falsely report to the EPA-delegated agency (Cal/OSHA) that certain individ-
uals had attended the asbestos training and passed the exam. Thrower also admitted that when trainees did
actually attend classes and paid in cash, defendant would keep this cash herself instead of providing it to her
employer. All told, Thrower caused a financial loss to her employer of between $10,000 and $30,000.
Training for asbestos abatement professionals is required under the Asbestos Hazard Emergency Re-
sponse Act of 1986 (AHERA), as well as the Toxic Substances Control Act (TSCA). Section 206(a) of TSCA pro-
hibits any person from removing asbestos from schools and commercial buildings unless that person has
been trained under an EPA-
approved program, or a State
program accredited by the EPA
that has been found to be at least
as stringent as the model pro-
gram developed by the EPA. The
EPA has accredited the asbestos
training program of the State of
California, administered by the
Occupational Safety and Health
Administration of the State (Cal/
OSHA).
Thrower is scheduled to
appear before United States Dis-
trict Court Judge Marilyn L. Huff
on February 17, 2015, for sen-
tencing.
am an am nrn
m um am LIU
a ma ma ma ma ma
Certificate of Training
This is to certify that
has successfully completed 8 hours of fo
AHERA Worker Refresher
as approved by the California Division of Occupational Safety and Health
nd as certified by the Environmental Protection Agency and approved by AHERA, under TSCA Title II
•• Design For Health Training Center
I ! 3S74 Kellner Blvd.
! San Diego, CA 92101
Phone: (619)291-1777 Fax: (610)291-431!
DOSH Approval 011-02
Certificate tt 0611WK17SS92 , ,__
Course Date: 6/10/2011 \ IB
Exam Date: N/A
Virginia L. Sliefa B.S., M.N.Sc., C.I.A.Q.P.
President
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Indictments/Information!
West Virginia Chemical Company Officials Indicted in January Spill-On December 17, 2014, FREEDOM
INDUSTRIES, INC. (FREEDOM), GARY L. SOUTHERN, DENNIS P. FARRELL, WILLIAM E. TIS, CHARLES E.
HERZING, ROBERT J. REYNOLDS, MICHAEL E. BURDETTE were charged with various federal crimes related
to the January 2014 Elk River chemical spill in Charleston.
Former Freedom President Gary L. Southern, 53, currently of Marco Island, Florida, along with former
Freedom owners and officers Dennis P. Farrell, 58, of Charleston, William E. Tis, 60, of Verona, Pennsylvania,
and Charles E. Herzing, 63, of McMurray, Pennsylvania, were indicted by a grand jury sitting at Beckley, West
Virginia. Freedom environmental consultant Robert J. Reynolds, 63, of Apex, North Carolina, and tank farm
plant manager Michael E. Burdette, 60, of Dunbar, West Virginia, were charged in charging documents
known as "informations." Freedom Industries, Inc., was also charged in an information.
Southern is charged with the negligent discharge of a pollutant in violation of the Clean Water Act,
negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit.
Southern is also charged with wire fraud and various bankruptcy fraud charges. If Southern is convicted of all
the charges contained in the indictment, he is exposed to a statutory maximum of 68 years in prison.
Farrell, Tis and Herzing are charged with the negligent discharge of a pollutant in violation of the
Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an
environmental permit. If Farrell, Tis and Herzing are convicted of all the charges with which they are charged
in the indictment, they are each exposed to a statutory maximum of three years in prison.
During the time they were responsible corporate officers for Freedom, Farrell, Tis, Herzing and
Southern allegedly approved funding only for those projects that would result in increased business revenue
for Freedom, or that were immediately necessary for required equipment maintenance. They allegedly failed
to take action to fund other repair and upkeep projects for equipment and systems necessary for
environmental compliance at the Elk River facility, including repairing defects in a containment wall,
addressing drainage problems in the containment area, and developing and implementing proper protection
plans.
Information charges were also filed against Freedom itself, as well as Robert J. Reynolds and Michael
E. Burdette. Freedom is charged with the negligent discharge of a pollutant in violation of the Clean Water
Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental
permit. Michael Burdette, the former plant manager for the Freedom facility on the Elk River, and Robert
Reynolds, also one of the individuals responsible for environmental compliance at Freedom, have each been
charged with violating the Clean Water Act.
Charges contained in indictments and informations are merely accusations, and defendants are
presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Back to Defendant Summary
EPA Pub. 310-N-14-012
Page 9 EPA Bulletin—December 2014
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