U
Environmental  Crimes
Case  Bulletin
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Defendant Summary
Sentencings
Plea Agreements
 Indictments/

 Informations
 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.

 March 2014


 In This Edition:



 • Tonawanda Coke Corporation, Mark L. Kamholz — Re-

  gion 2


 • Steven A. Murray, Bio-Tech Management, Inc. — Region

  4


 • Robert Lewis — Region 4


 • Benedict W. Lupo — Region 5


 • Robbie Mouton — Region 6


 • Patrick Bowman, Rudolph Buendia III — Region 9


 • Brandon Traner — Region 10


 • North Pacific Seafoods — Region 10


 • Stanley Xu, Longwell Company — Region 10
                   oEPA
            United States
            Environmental Protection
            Agency
EPA Pub. 310-N-14-003

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                                  Defendant Summary
Region
Defendants
Case Type/Status
Region 2
Tonawanda Coke Corporation,
Mark L. Kamholz
CAA & RCRA/Releasing benzene into air through un-
reported pressure relief valve, disposing of hazard-
ous waste without a permit, obstruction of justice
Region 4
Steven A. Murray, Bio-Tech Man-
agement, Inc.
FIFRA/Conspiracy, unlawful use of pesticides, false
statements, mail fraud
Region 4
Robert Lewis
RCRA/Unlawful storage of hazardous waste
Region 5
Benedict W. Lupo
CWA/Discharging brine into river tributary
Region 6
Robbie Mouton
CWA/Negligent discharge of pollutants into river
                                             Page 2
                                                      EPA Bulletin-March 2014

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                                 Defendant Summary
Region
Defendants
Case Type/Status
Region 9
Patrick Bowman, Rudolph Buen-
dia III
CAA/Violating the asbestos work-practice standards
of the National Emissions Standards for Hazardous
Air Pollutants
Region 10
Brandon Traner
CWA/Abandonment of derelict vessel and discharg-
ing pollutants into state waters
Region 10
North Pacific Seafoods
CWA/lllegal dumping of ammonia into city sewer sys-
tem
Region 10
Stanley Xu, Longwell Company
CAA/Exposing residents and workers to airborne as-
bestos
                                            PageS
                                                      EPA Bulletin-March 2014

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                                        Sentencings
Fish Processor Sentenced in Alaska for Illegal Dumping of Ammonia into City Sewer System -- On March 11,
2014, NORTH PACIFIC SEAFOODS was sentenced in federal district court for the District of Alaska to three
years of probation, and $205,000 in criminal penalties, $55,000 of which is to be directed to the city of Kodi-
ak for hazardous waste response training and equipment for sewer and fire department employees. North
Pacific Seafoods pled guilty to a charge of illegal dumping of ammonia into the Kodiak city sewer.  The terms
of probation also require that North Pacific Seafoods comply with an Environmental Compliance Plan  that
includes, among  other things, training for all employees at all five facilities  in Alaska regarding proper han-
dling of hazardous wastes and specifically ammonia.
                                                                   North  Pacific Seafoods  is a  Se-
                                                             attle, Washington corporation, which is a
                                                            'subsidiary of Marubeni, a  Japanese  cor-
                                                             poration.  North Pacific Seafoods owns
                                                             five    seafood   processing    facilities
                                                             throughout Alaska,  including  Alaska  Pa-
                                                            ,cific Seafoods, located in Kodiak, Alaska.
                                                                   According to the  assistant  U.S.
                                                             attorney, on  November 29, 2011, North
                                                             Pacific Seafoods' employees at its Alaska
                                                             Pacific Seafoods facility dumped approxi-
                                                             mately 40 pounds of ammonia  waste
                                                             from its refrigeration system into the Ko-
                  Alaska Pacific Seafoods Facility                    diak citY  sewer- Tne ammonia odor was
                                                             detected  by  employees at the sewage
plant for Kodiak. The Kodiak Fire  Department was asked to help locate the source of the ammonia.
      The chief engineer for the  Alaska Pacific Seafoods facility at first denied discharging the ammonia
when asked about the ammonia  odor. Sewer employees then traced the discharge back to the Alaska Pacific
Seafoods facility, at which time the chief engineer admitted to the discharge. The discharge of the ammonia
by the Alaska Pacific Seafoods facility wiped out the secondary treatment at the sewer system and caused
the sewer system to violate its Clean Water Act permit.
      A joint  investigation  by EPA and the Alaska  Department of Environmental Conservation determined
that the facility had been discharging ammonia into the St. Paul Harbor before and after the sewer incident
in violation of  its Clean Water Act  permit. North Pacific Seafoods  disputes the illegality of the ammonia dis-
charges  into St. Paul Harbor that occurred prior to the entry of its guilty  plea but agrees that in the future
such discharges will be prohibited.
      The chief engineer who  directed the discharge at the Alaska Pacific Seafoods facility, Bill Long, is
scheduled to be arraigned in state  court on March 14, 2014, on a charge of violating the permit regulated by
the Alaska Department of Environmental Conservation.
      The case was investigated by EPA's Criminal Investigation Division and the Alaska Department of Envi-
ronmental Conservation.
Back to Defendant Summary
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EPA Bulletin-March 2014

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                                         Sentencings
 Georgia Hazardous Waste Transporter Sentenced -- On March
20, 2014,  ROBERT LEWIS, of Atlanta, Georgia, was sentenced
in  federal district court for  the  Middle District of Georgia to
serve 10 months in federal prison for unlawful storage of haz-
ardous waste.
       Lewis entered a guilty plea to the charges on September
26, 2013.  In his plea agreement,  Lewis admitted that he owned
and operated a waste hauling business under the name of Sim-
ple Solutions, Inc. From about May 2007 until April 2008, Lewis
transported hazardous waste, generated by a local manufactur-
ing plant, to a licensed disposal facility.
       On February 26, 2009, forty 55-gallon drums and sixteen
275-gallon totes of this hazardous  waste material were found
to be  improperly  stored  at a self-storage facility in Macon,
Georgia. The units had been rented by Lewis  in July 2007.  Lew-
is rented four additional units in August 2007. It was also de-
termined  that Lewis had  improperly stored  hazardous waste,
including  highly flammable solvents  and highly toxic cyanide
wastes, in Rex, Georgia, and at his home in Albany, Georgia.
       The case was  investigated by EPA's Criminal Investiga--
tion Division.  It was prosecuted by Assistant  United States
Attorney Paul C. McCommon III.
Back to Defendant Summary
rotes of hazardous waste found inside storage units
 at Bass at Wesleyan self storage, Macon, Georgia.
 Storage units were initially rented by Robert Lewis
  and then opened due to lack of rent payment.
                                                           Assessment and removal of hazardous waste Lewis
                                                             illegally stored inside storage unit 34 at Bass at
                                                                       Wesleyan self storage.
                         Hazardous waste tote and drum found inside a storage unit.
                                               PageS
              EPA Bulletin-March 2014

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                                        Sentencings
 Storage tank that was dismantled for
  scrap metal and released coal tar
sludge material that tested positive for
           benzene.
New York Coke Company and Manager Sentenced for CAA and RCRA Violations ~ On March 19, 2014,
TONAWANDA COKE CORPORATION was sentenced in federal district court for the Western District of
New York to pay a $12.5 million penalty and $12.2 million in community service payments for criminal vio-
lations of the Clean Air Act and the Resource Conservation and Recovery Act. Tonawanda was convicted
                               by a federal jury in March 2013 on 11 counts of violating the CAA and
                               three counts of violating the RCRA.
                                      The fine is one of the largest fines ever levied in an air pollution
                               case involving a federal criminal trial. The community service payment
                               will go to fund an epidemiological study and an air and soil study to help
                               determine the extent of health and environmental impacts of the coke
                               facility on the Tonawanda community.
                                       In addition, Tonawanda Coke Environmental Control Manager,
                               MARK L. KAMHOLZ, of West Seneca, New York, who was convicted of
                               11 counts of violating the CAA, one count of obstruction of justice and
                               three counts of violating the RCRA, was sentenced to one year in prison,
                               100 hours of community service, and a $20,000 fine.
                                According to evidence presented  at  trial, Tonawanda Coke released
                               coke oven gas containing benzene  into the air through an unreported
                               pressure relief valve.  In addition, a coke-quenching tower was operated
                               without baffles, a  pollution  control device required by TCC's  Title V
                               Clean Air Act permit  designed to reduce the particulate  matter that is
                               released into the air during coke quenches.
                                In addition, prior to  an inspection  conducted by EPA in  April of 2009,
                               Kamholz told another TCC employee to conceal the fact that the unre-
 Coal tar concrete pad where decanter
 tank tar sludge (K087-listed hazard-  Ported pressure relief valve, during normal operations, emitted  coke
 ous waste) should have been mixed  °ven gas directly into the air, in violation of the TCC's operating permit.
                                The defendants also stored, treated and disposed of hazardous waste
                               without a permit to do so, in violation of the Resource Conservation and
                               Recovery Act.  These offenses related to TCC's practice of mixing its coal
                              I tar sludge, a  listed hazardous waste that is toxic for benzene, on the
                               ground in violation of hazardous waste  regulations.
                                The sentences are the culmination of an  investigation on the  part of
                               EPA's Criminal Investigation Division and the New York State Depart-
                               ment of Environmental Conservation Police's Bureau of Environmental
                               Crimes Investigation,   It was prosecuted  by Assistant U.S. Attorney Aa-
                               ron J. Mango of the Western District of New York and Senior Trial Attor-
 East Quench Tower that required the  neV Rocky Piaggione of the Environmental Crimes Section in the Justice
 installation of baffles for particulate  Department's Environment and Natural Resources Division.
  emission control per the Title V air   Back to Defendant Summary
            permit.
 with coal prior to placing the mixture
     into the coke oven battery.
                                              PageS
                                                                       EPA Bulletin-March 2014

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                                       Sentencings
Washington Apartment Complex Owner. Company Sentenced to Prison for CAA Violations — On March
13, 2014, STANLEY XU, the owner of a Kent, Washington, apartment complex, was sentenced in federal
district court for the Western District of Washington for violating the Clean Air Act by exposing residents
and workers to airborne asbestos to 15 months in prison, 90 days of home confinement and ordered to
make a $75,000 community service payment to the  National Environmental  Education Foundation.  Xu's
company, LONGWELL COMPANY, was fined to $159,850 and  placed on five years of probation to ensure it
complies with all environmental regulations. The defendants pleaded guilty in October 2013 for failing to
protect residents of the Avante Apartments in Kent from asbestos exposure following a pipe rupture in De-
cember 2009.  Xu knew the ceiling material that rained into the apartments  contained asbestos,  but still
hired a clean-up contractor who took no steps to protect the apartment residents or workers hired to clean
up and dispose of the hazardous waste.
       According  to  records filed  in
the case, in 2006  EPA filed complaints
against Xu  for  lead paint contamina-
tion at another apartment complex he
owns.  In  2007, he was cited by the
Washington  State Department of La-j
bor and Industries for failing to do  an
asbestos  survey  before construction
work at another complex. At a hearing i
in  November 2009,  Xu stated he un-
derstood the code and  that popcorn
ceiling material contains asbestos.  De-i
spite  those  statements,  less than a
month later when the pipes burst,  he
took  no steps  to  ensure the asbestos
material that fell  into the apartments
was disposed of properly. In fact,  after
Xu's  guilty plea in October 2013,  he again failed to protect tenants  and workers from airborne asbestos
during another apartment repair project.
       The community service payment in this case goes to the National Environmental Education Founda-
tion,  a Congressionally mandated  foundation established and dedicated to advancing environmental  edu-
cation.
       The case was investigated  by EPA's Criminal Investigation Division.  It  was prosecuted by Assistant
United States Attorney Kathryn K. Frierson and Special Assistant United States Attorney Karla G. Perrin with
the EPA.
Back to Defendant Summary
One of the apartments with asbestos contaminated ceiling material that Xu
                 failed to dispose of properly.
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                                 EPA Bulletin-March 2014

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                                        Sentencings
                                                          Regulated asbestos containing material pipe insula-
                                                                         tion debris.
California Men Sentenced for Asbestos Abatement Violations at Former Air Force Base - On March 31,
2014, PATRICK BOWMAN, of Los Banos, California, and RUDOLPH BUENDIA III, of Planada, California, were
sentenced in federal district court for the  Eastern District  of California for violating the  asbestos work-
practice standards of the National Emissions Standards for'
Hazardous  Air  Pollutants.   Bowman  was  sentenced to 27
months in prison and Buendia to 24 months in prison. Anoth-
er defendant, JOSEPH CUELLA,  is currently scheduled to be
sentenced on June 16, 2014.  A restitution hearing as to all
three defendants is also scheduled for June 16.
       According to court documents, Joseph Cuella was the
administrative manager of  Firm Build  Inc., Patrick Bowman I
was  its  president, and Rudolph Buendia was  its construction
project site supervisor. From September 2005  to March 2006,
Firm Build operated a demolition and renovation project in the
former Castle Air Force Base in Atwater, California. They were
to turn  Building 325  into a mechanic  training center for the
Merced County Board of Education. The defendants  hired local
high school students from the Workplace Learning Academy in
Merced to perform some of the renovation.
       According to court documents,  the students and other
employees removed and disposed of approximately  1,000 line-
ar feet of pipe insulation and additional tank insulation which
the defendants knew contained  regulated asbestos-containing
material without utilizing proper protective equipment (in the   Regulated asbestos containing material wrapped
form  of Tyvek suits, full-face respirators, bootie or footwear   steam pipe attached to a heater suspended from
coverings, gloves, hair hoods or caps, and shower equipment)                  the ceiling.
or taking protective measures (wetting the asbestos containing materials, sealing the asbestos debris in se-
cure plastic bags, using negative air pressure in the building) in violation of federal law. Asbestos became air-
                                        borne during this illegal asbestos abatement. In performing the
                                        asbestos abatement project  in this manner, defendants know-
                                        ingly exposed Firm Build employees, Workplace Learning Acade-
                                        my students, as well as other subcontractors and their employ-
                                        ees to hazardous  airborne asbestos.
                                              The case was investigated by EPA's Criminal  Investigation
                                        Division, assisted by the California EPA, the investigations bu-
                                        reau of the Merced County District Attorney, and the California
                                        Department of Justice.  It was  prosecuted  by Assistant  United
                                        States Attorneys Samuel Wong and Melanie Alsworth.
Garbage bags with regulated asbestos containing
             pipe insulation.
                                        Back to Defendant Summary
                                              PageS
                                                                        EPA Bulletin-March 2014

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                                     Plea Agreements
Former Owner of Ohio Company Pleads Guilty to Discharging Brine into Mahoning River -- On March 24,
2014, BENEDICT W. LUPO, of Poland, Ohio, the former owner of a Youngstown,  Ohio-based company,
pleaded guilty in federal district court for the Northern District of Ohio to violating the Clean Water Act by
discharging brine into a tributary of the Mahoning River.  Lupo is scheduled to be sentenced on June 16. The
                                                         | conduct took place between November 1,
                                                          2012, and January  31, 2013, according to
                                                         : court documents.
                                                                According to the indictment and
                                                          related court documents,  Hardrock  Exca-
                                           ^~~^jLti*^  vating LLC was owned by Lupo and located
                                ^^^^^5™ u  F .« , • X •" - *> -
                                                          in Youngstown. The company provided ser-
                                                         i vices to the oil and gas industry  in Ohio
                                                         [and Pennsylvania, including the storage of
                                                          brine and oil-based drilling mud  used  in
                                                          hydrofracturing, or fracking.   There  were
                                                          approximately 58 mobile storage tanks at
                                                         ithe facility and  each holds approximately
                                                         | 20,000 gallons.
                                                                Lupo directed an employee to emp-
                                                          ty  some of the waste  liquid stored at the
                                                          facility into a nearby wastewater drain on
                                                          or about November 1, 2012. Lupo directed
the employee to conduct this activity only after no one else was at the facility and only after dark.  At the di-
rection of Lupo, an employee emptied some of the waste liquid at the facility into the nearby stormwater
drain using a hose on numerous occasions over the next several months. The drain flowed into a tributary of
the Mahoning River and ultimately into the Mahoning River.
      The last time an employee emptied some of the waste liquid into the drain was on or about January
31, 2013. The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that
night was black  in color and a subsequent analysis showed the presence of several hazardous pollutants, in-
cluding benzene and toluene.
      The statutory maximum for violating the Clean Water Act for individuals is three years in prison, one
year of supervised release and a fine of  $50,000 per day of violation or $250,000, whichever is larger. Mi-
chael Guesman, of Cortland, Ohio, previously pleaded guilty to his role in the crime and has been sentenced
to three years of probation and 300  hours of community service. The criminal case against Hardrock Exca-
vating LLC remains pending.
      The case was investigated by EPA's Criminal Investigation Division, the Ohio EPA, Ohio Department of
Natural Resources, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works
and the Youngstown Fire Department. It is being prosecuted by Special Assistant U.S. Attorney Brad Beeson.
Back to Defendant Summary
The storm sewer outfall in which Lupo directed an employee to discharge
  waste liquid. The outfall ultimately flows into the Mahoning River.
                                              Page 9
                                                                      EPA Bulletin-March 2014

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                                     Plea Agreements
Louisiana Company Owner Pleads Guilty to Negligently Discharging Pollutants into River -- On March 12,
2014, ROBBIE MOUTON, of Youngsville, Louisiana, pleaded guilty in federal district court for the Western
District of Louisiana to one count of negligent discharge of pollutants. He faces a year in prison, a year of su-
pervised release, and a fine of $2,500 to $25,000 per day of the violation or $100,000, whichever is greater.
No sentencing date was set.
      According to evidence presented at the guilty plea, Mouton, who owns Robbie's Gauging Service, Inc.
of Youngsville and  is its principal gauger, negligently discharged a mixture  of produced  water and crude oil
into the Vermilion River during the period January 6, 2009 to January 19, 2009, at an oilfield exploration site
in Milton, Louisiana. Mouton admitted that the discharge took place without a permit.
      The case was investigated by EPA's Criminal Investigation Division, the Louisiana Department of Envi-
ronmental Quality-Criminal Investigations Division, and the Louisiana State Police-Emergency Services Unit.
It is being prosecuted by Assistant U.S. Attorney Daniel J. McCoy.
Back to Defendant Summary
             Oil contamination along slough
Source of oil and produced waters that were discharged
                                              Page 10
                    EPA Bulletin-March 2014

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                                     Plea Agreements
Alabama Pest Control Company and Its Owner Plead Guilty to Unlawful Application of Pesticides at Geor-
gia Nursing Homes -- On March 14, 2014, STEVEN A. MURRAY, of Pelham, Alabama, and his company, BIO-
TECH MANAGEMENT, INC., pleaded  guilty  in federal district court for the Middle  District of Georgia  to
charges of conspiracy, unlawful use of pesticides, false statements and mail fraud in connection with the mis-
application of pesticides in Georgia nursing homes.
       According to the plea agreement, from October 2005 to June 2009, Murray and Bio-Tech provided
monthly pest control services to nursing homes in Georgia by spraying pesticides in and around their clients'
facilities.  Bio-Tech   employees  routinely  applied   the  pesticide  Termidor  indoors,  contrary   to
the manufacturer's label instructions.  After the Georgia Department of Agriculture made inquiries regarding
Bio-Tech's misuse of Termidor and  other pesticides, Murray directed several of his Bio-Tech employees to
alter company service reports with the intent to obstruct an investigation.
       The case was investigated by  EPA's Criminal Investigation Division.  Inquiries  about it should be  di-
rected to Pamela Lightsey, United States Attorney's Office for the Middle District of Georgia.
Back to Defendant Summary
Georgia Department of Agriculture Inspector taking samples to be tested for the presence of Termidor inside the nursing homes.
                                              Page 11
EPA Bulletin-March 2014

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                               Indictments/Informations
Washington Fishing Trawler Owner Charged with Abandoning Vessel and Discharging Pollutants into
State Waters - On March 5, 2014, BRANDON TRANER, owner of the M/V Forus,  a former salmon fishing
trawler, was charged in Benton County, Washington, District Court with abandoning  his sunken vessel and
of discharging polluting matters into state waters, namely, the Columbia River near Finley, Washington, in
July 2013. This  is the first state-initiated  derelict vessel prosecution in Eastern Washington. The charges
carry a maximum of 364 days in jail or a $10,000 fine plus restitution and assessments.
       The state alleges Traner was evicted from the Columbia Marine Center in Pasco in July 2013. Ac-
cording to the affidavit of probable cause, he asked his friend,  Lyle Aylett, to pilot the Forus to the Hat Rock
Marina in Oregon. Aylett told the investigator, the vessel began taking on water in the middle of the navi-
gation channel, forcing him to abandon it and swim to safety.
       According to the affidavit of probable cause, the Forus sank in the middle of the Columbia  River in
approximately 40 feet of water. The vessel reportedly carried  50 gallons of diesel and eight gallons of mo-
tor and hydraulic oils.  Court documents state the masts posed a threat to  passing barges and  vessels in
that well-trafficked area.
       In the investigation, the  EPA Region  10 On-Scene Coordinator reported contacting Traner to  re-
move the vessel. Traner reportedly said he did not have the resources or insurance  to respond or remove
it. Due to difficulties in lifting the vessel from the  bottom of the river, the state alleges it took more than a
month to remove the Forus from the river. The removal effort prevented the potential  release of an addi-
tional 159 gallons of fuel. The Forus was then taken to the Port of Pasco for storage until it was eventually
dismantled and  sent for disposal.  The state has spent more than $100,000 in cleanup and recovery costs.
       The case was investigated by EPA's Criminal Investigation Division.
       The charges contained in the affidavit of probable cause are only allegations.  A person  is  presumed
innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Back to Defendant Summary
  EPA Pub. 310-N-14-003

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