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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. To subscribe to this monthly bulletin you may sign up for
 email alerts at http://www2.epa.gov/enforcement/criminal-enforcement-policy-
 guidance-and-publications.
 July 2015

 In This Edition:

 • Aireko Construction Company, Edgardo Albino — Region 2

 • Miguel Castillo — Region 2

 • Ronen Bakski — Region 3

 • Donzell Moore, Moorhouse Real Estate Development LLC — Region 5

 • Brian Osborn — Region 6

 • Earl Patrick Kearney — Region 7

 • Kevin L. Cline — Region 7

 • Michael J. Wolf — Region 7

 • Larry Wolf — Region 7

 • Kirk Hayward, Charles Seaton — Region 9

 • Jon Koloski — Region 10
                     &EPA
             United States
             Environmental Protection
             Agency
EPA Pub. 310-N-15-007

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                                 Defendant Summary
Region
Defendants
Case Type/Status
Region 2
Aireko Construction Company,
Edgardo Albino
CAA/lllegal asbestos removal; failure to notify imme-
diately appropriate government agency
Region 2
Miguel Castillo
RCRA/lllegally storing hazardous waste and making
false statements to EPA
Region 3
Ronen Bakski
CAA/Falsifying records and wire fraud
Region 5
Donzell Moore, Moorhouse Real
Estate Development LLC
CAA/lllegal asbestos removal and disposal
Region 6
Brian Osborn
CWA/II legally dumping of polluted water into a bay
                                             Page 2
                                                      EPA Bulletin-July 2015

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                                   Defendant Summary
Region
Defendants
Case Type/Status
Region 7
Earl Patrick Kearney
CWA/Altering sample data in monitoring reports
Region 7
Kevin L. Cline
CWA/Submitting false and fraudulent samples and
reports to state health department
Region 7
Michael J. Wolf
CWA/II legally discharging biological materials and
agriculture waste into U.S. waters
Region 7
Larry Wo If
CAA/Knowingly illegally violating work practice stand-
ards related to asbestos removal
Region 9
Kirk Hayward, Charles Seaton
RCRA/lllegal transportation of hazardous waste with-
out a license, falsification of official hazardous waste
disposal records, conspiracy, fraudulent use of identi-
fication and license of another transporter
Region 10
Jon Koloski
CWA/Making false statements to federal authorities,
failure to complete permit process
                                              PageS
                                                        EPA Bulletin-July 2015

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                                         Sentencings
Missouri Man Sentenced for CWA Crimes  -- On July 6, 2015, EARL PATRICK  KEARNEY was sentenced in
federal district court for the Western District of Missouri to 5 years of probation and ordered to a  pay a
criminal  penalty of $30,000. In December, Kearney pleaded  guilty to  two  negligent Clean  Water  Act
violations. Kearney  was employed as a wastewater treatment operator for  two housing developments
between May 2010 and August 2011. He was responsible for conducting wastewater sampling at the facilities
and submitting those results to the Missouri  Department of  Natural Resources. Kearney admitted to altering
sample data on quarterly discharge monitoring reports that he submitted to the state so that it appeared
they were in compliance with their discharge permits. The actual test results for total phosphorous, however,
showed that they had violated their permits.
       The case  was investigated  by EPA's Criminal Investigation Division and the Missouri Department of
Natural Resources. It was prosecuted by Assistant U.S. Attorney Steve Mohlhenrich.

Back to Defendant Summary
                                                              ..  '
    Outfall from one of the facilities for which Kearney falsified discharge monitoring reports later submitted to the Mis-
                                 souri Department of Natural Resources.
                                              Page 4
EPA Bulletin-July 2015

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                                        Sentencings
Kansas Business Owner Sentenced for CWA Violations -- On July 6, 2015, KEVIN L. CLINE,  of Minneapolis,
Kansas, owner of C & R Plating, a  metal plating company in Minneapolis, was sentenced in federal district
court for the  District  of  Kansas to  four
months  in federal prison  followed by six
months  home confinement for violating
the federal Clean Water Act. His company  mBI^^H^kflH&MiC£ELl>>  W  I
was fined $10,000. In addition, he and his
company were ordered to pay $281,503
in restitution.
      In his plea, Cline admitted he was
responsible for high levels of zinc found in
a sewer system operated by the  city  of
Minneapolis.   Beginning  in  2007, Cline
submitted false and fraudulent samples
and reports to the Kansas Department  of
Health and Environment  to conceal the
fact that untreated waste  water from C &
R  Plating was being  delivered  to the
Minneapolis sewer  system.  The  water
came from  spent chemical baths used  in
treating metals. The city sewer system
discharges  into the Solomon  River via
Lindsey Creek and an unnamed tributary.
      The   case  was investigated  by
EPA's Criminal  Investigation Division.  It
was prosecuted by Assistant U.S. Attorney
Richard Hathaway.

Back to Defendant Summary
The treatment system inside C&R Plating
                                            Hoses in C&R Plating leading to the drain and city sewer system.
                                              PageS
                   EPA Bulletin-July 2015

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                                       Sentencings
Former church where illegal asbestos re-
       moval was conducted.
                                  New Jersey Man Sentenced for Submitting False Documents to City
                                  of  Philadelphia - On July 21, 2015,  RONEN BAKSKI, of Voorhees,
                                  New Jersey, was sentenced in federal district court for the Eastern
                                  District of Pennsylvania to one year and  one day  in  prison for
                                  falsifying records to obstruct a matter within the jurisdiction of the
                                  U.S. EPA and  wire fraud.  He also received a $30,000 fine, a  $200
                                  special assessment, and a year of  supervised release to follow
                                  imprisonment.
                                        Bakski  submitted false documents to the  city of Philadelphia's
                                  Air  Management Services  office in connection with  a  project for
                                  removal of asbestos-containing material  from a former  church
                                  located in  Philadelphia  and  billed  the non-profit  owner  of the
                                  property for work he did not  perform. He pleaded guilty on March
                                  18, 2015 to both counts of the indictment.
                                        The case  was  investigated by EPA's Criminal Investigation
                                  Division  with assistance  from the city  of Philadelphia's Air
                                  Management  Services office.   It is  being  prosecuted  by Special
                                  Assistant United States Attorneys Martin Harrell  and Patricia C. Miller
                                  of EPA.

                                  Back to Defendant Summary
                    Asbestos containing material illegally removed from the former Church.
                                             PageS
EPA Bulletin-July 2015

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                                     Sentencings
Discharge pipe (shown with 90 degree angle).
Louisiana  Energy Company Operation  Manager Pleads  Guilty.  Is Sentenced for Negligently discharging
Pollutants Into a Bay - On July 15, 2015, BRIAN OSBORN, of Lafayette, Louisiana, pleaded guilty in federal
district court for the Western District of Louisiana to one count of negligent discharge of pollutants. He was
sentenced to one day in prison and one year of supervised release and was ordered to perform 200 hours of
                                           community service. The evidence presented at the guilty plea
                                           showed that Gulfport Energy discharged produced water into
                                           West Cote Blanche Bay from  June 2011 until March  2012.
                                           United  States  Attorney  Stephanie A. Finley announced  a
                                           clarification  related  to  an  oilfield  production company
                                           employee's guilty  plea and sentencing for dumping polluted
                                           water into West  Cote Blanche Bay.  Finley clarified that
                                           according  to  the  guilty plea,  Osborn,  who was Gulfport
                                           Energy Corporation's operation manager for the platform,
                                           should have been  aware of the problem.  Additionally,  Finley
                                           clarified that the problem was not timely addressed and the
                                           platform continued to illegally discharge the produced  water
                                           at certain production rates over a  10-month period. Osborn
                                           was  found  to  be  an  officer  within  Gulfport  Energy
                                           Corporation who became aware of the  defective nature of
the platform, and who had the responsibility to fix any deficiency causing illegal discharges.  Produced waters
are left over after separating oil from drainage fluids. The pollutants should have been disposed of via barge,
injection well or other approved method.
       Gulf Port Energy pleaded guilty and was sentenced on one count of negligent discharge of pollutants
on October 27, 2014. The company was ordered to pay $1.5 million. Gulfport paid a $1.125 million fine for
violating the  Clean Water Act. The company also  paid
$375,000 in community service for a total of $1.5 million.
Of the $375,000, $100,000 was paid to the Louisiana State
Police Emergency Services Unit; $100,000 was paid to the
Louisiana Department of Environmental  Quality; $125,000
was paid to the Public  Oyster Seed Ground Development
Account within the Conservation Fund  administered by
the Louisiana  Department of Wildlife and  Fisheries; and
$50,000 was paid to Southern Environmental Enforcement
Network.
       The case was  investigated  by EPA's  Criminal
Investigation  Division and the Louisiana Department of
Environmental Quality-Criminal Investigations Division.  It
was prosecuted by Assistant U.S. Attorney Myers P. Namie.

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                                                                  Area of discharge
                                           Page?
                                                                        EPA Bulletin-July 2015

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                                        Sentencings
An Iowa Man Sentenced for CWA -- On July 20, 2015, MICHAEL J. WOLF, of Remsen, Iowa, was sentenced in
federal district court for the Northern District of Iowa for Clean Water. Michael Wolf received a sentence
including six weekends in prison after a December 16, 2014, guilty plea to one count of knowingly discharging
a pollutant into a waterway of the United States which resulted in a fish kill.  A special assessment of $100
was also imposed.  At the plea  and sentencing hearings, the United States  presented evidence that on
October 23 and 24, 2012, Wolf, while he was the maintenance manager at Sioux-Preme Packing, intentionally
discharged biological materials and agricultural wastes (e.g., blood, fecal material, animal guts, cleaning
chemicals, etc.) from one of Sioux-Preme's waste lagoons into a tributary of the West Branch of the  Floyd
River.
      The discharge lasted more than 11 hours.  It fouled  over 11 miles of river, downstream from the
lagoon.  It killed over 190,058 fish of various species (with a value of $20,282.94) and caused the State of
Iowa to expend more than $5,000 in response costs.  One witness to the fish kill  described watching fish
jumping out of the water and  racing around to avoid  the deadly plume. Wolf lied to members of the Iowa
Department of Natural Resources' Emergency Response team attempting to ameliorate the effects of the
spill. This delay likely worsened the effects of the spill.
      The case was investigated by EPA's Criminal  Investigation Division  and the Iowa Department of
Natural Resources.  It was prosecuted by Assistant United States Attorney Forde Fairchild.

Back to Defendant  Summary
                                              PageS                     EPA Bulletin—July 2015

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                                         Sentencings
A Nebraska Man Sentenced for CAA Violations - On July 20, 2015, LARRY WOLF, of Dakota City, Nebraska,
was sentenced in federal district court for the Northern District of Iowa for Clean  Air Violations.  Larry Wolf
                                                              received  a sentence  including a year
                                                              and a  day in prison  after a December
                                                              17, 2014, guilty plea to one count of
                                                              knowingly violating the work practice
                                                              standards of the Clean Air Act by failing
                                                              to thoroughly inspect the old Sioux City
                                                              YMCA  to  ascertain  the  amount  of
                                                              asbestos, and whether that amount was
                                                              sufficient  to subject  the  demolition
                                                              project  to  regulation.   A   special
                                                              | assessment of $100 was also imposed.
                                                                     At  the   plea  and  sentencing
                                                              hearings, the United States presented
                                                              evidence  that  Larry Wolf  knew the
                                                              building   contained   asbestos   and
                                                              regulated asbestos-containing  material
and that he had even received an asbestos abatement estimate for the building. Despite knowing the old
YMCA building contained asbestos, Wolf directed friends, family, and others to, disturb,  renovate, remove,
and dispose the asbestos and regulated asbestos-containing material and  help him personally do so.  Wolf
took at  least 19,514 pounds of scrap metal from  the old  YMCA and was paid at least $30,477.54 from one
particular scrap yard for it.  He boasted  he  had made $80,000.00 or more from the old YMCA in this
way.  When he was questioned  by Special EPA Agents he lied, telling them he had only removed naked
materials from the facility.
      The case was  investigated  by  EPA's Criminal Investigation Division  and the Iowa  Department of
Natural  Resources.  It was prosecuted by Assistant United States Attorney Forde Fairchild.
The old YMCA building from which Wolf, and others at his direction, tore and
                removed pipes containing asbestos.
Back to Defendant Summary
                                               Page 9
                                                                       EPA Bulletin-July 2015

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                                        Sentencings
California Men Sentenced for Related to Hazardous Waste  Disposal Records and for Transportation of
Hazardous Waste Without Required Permit -- On July 29, 2015, KIRK HAYWARD and  CHARLES SEATON,
respectively the former owner and the former vice president of Clearwater Environmental Management, Inc.,
of  Union  City,  California, were sentenced  in
Alameda,  California,  county  district  court for
felony  convictions of conspiracy. Hayward was
ordered to serve one  year in  the county jail and
five  years of  formal probation,  and  to  pay
miscellaneous  fines. He was also ordered not to
own, manage, or consult for  a  hazardous waste
company.  Seaton  was ordered  to serve  four
months in the  county jail and  five years of formal
probation, and to pay miscellaneous fines. He was
also ordered not to own, manage, or consult for a
hazardous waste company for ten years.
       For years, Hayward and Seaton ran the
Union   City,   California-based   company  and
systematically defrauded Clearwater's customers,
falsified Clearwater customers' official hazardous
waste   disposal   records,   and   transported
hazardous waste without a  license from DISC.
       Defrauded     Clearwater     customers,
including   BART,   Closure   Solutions,    Rape
Machinery, and Recology, had hired  the business
to ensure compliance  with their legal obligations
as generators of hazardous  waste,  to lawfully
transport and  dispose of their hazardous  waste,
and to truly and accurately document disposal in Inside the Clearwater Environmental Management yard and truck-
official hazardous waste tracking records  called                      mgjaaiy.
'manifests'. However, Clearwater failed to provide customers with all of these environmental services.
       Clearwater lost its license (called a 'registration') to transport hazardous waste in 2007 after Hayward
was criminally convicted and ordered to serve 60 days in jail and pay a $70,000 fine stemming from an earlier
DISC investigation. After losing its license, Clearwater lawfully transported waste that was non-hazardous,
but also transported  waste that was hazardous, by fraudulently using the identity and  license of another
transporter on customers' official hazardous waste manifests. The defendants also often falsified the disposal
site in  customers' manifests. They represented that waste had been disposed of at Clearwater's facility in
Silver Springs,  Nevada, when the waste never went there, according to facility employees and records. In
truth, Clearwater illegally consolidated, stored, and/or disposed of the waste.

Back to Defendant Summary
                                              Page 10
EPA Bulletin-July 2015

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                                        Sentencings
Ohio Company Owner and His Company Sentenced in Asbestos Dumping Case -- On July 21, 2015, DONZELL
MOORE, of Toledo, Ohio, was sentenced in county court of common pleas for charges related to asbestos
removal and disposal during demolition of the former Champion Spark Plug facility in Toledo. He was given
30 days in jail (with work release eligibility), three years community control, and 240 hours of community
service. He also was ordered to pay $25,274.37, jointly with his company, to Ohio EPA for clean-up and
investigative costs. The court also reserved a 12-month prison sentence if Moore violates the terms of his
community control.   He had pleaded guilty on June 4  to charges of complicity to  remove asbestos without a
certification or license and illegal disposal of construction and demolition debris.
                                                 Separately, his company, MOORHOUSE REAL ESTATE
                                           DEVELOPMENT LLC, was  ordered  to  pay fines totaling
                                           $10,750.  The  company pleaded guilty to complicity  to
                                           remove asbestos without a certification or license, removing
                                           asbestos without notifying Ohio  EPA, and illegal disposal of
                                          I construction and  demolition debris.
                                                 In October 2012, Moore  paid  scrap worker  Ronald
                                          I Gibson, to illegally remove and dispose of  friable asbestos
                                           pipe insulation from the Champion facility in anticipation of
                                           demolishing the  boiler  building. Gibson, of Holland, Ohio,
                                           illegally disposed of the asbestos insulation  in rural western
 The OldStateline Roaddumpsite. This was taken by  Lucas  County and jn ,arge trash  bjns behjnd an apartment
the Ohio EPA employee who discovered the dump site.
                                           complex in West  Toledo. Gibson was sentenced on April  15
                                           to one year and 90 days in jail and a $750 fine on the latter
two counts. He received three years' community control including 160 hours of community  service and was
ordered to pay $5,374.37  in restitution. The jail time was suspended on  the condition he completed the
terms of his community control and cooperated in the prosecution of Moore and his company. The Gibson
criminal investigation was a collaboration of multiple agencies at the local, state,  and federal level as  part of
the Northwest Ohio Environmental  Crimes  Task Force, which also included assistance from  the Toledo
Division of Environmental Services and Ohio Department of Health's Environmental Abatement Section.  It
was prosecuted by the Ohio Attorney General's Environmental Enforcement Section, Criminal Prosecutions
Unit, which was appointed by the Lucas County prosecutor.
       The dump site in western Lucas County was discovered in November 2012 on  private  property off Old
Stateline Road in Monclova Township. After evidence  was collected, the asbestos insulation was cleaned up
and properly disposed of by an Ohio EPA contractor.
       The Moore case was investigated by EPA's Criminal Investigation  Division,  the Ohio  EPA Office  of
Special Investigations, and the Ohio Attorney  General's Bureau of Criminal Investigation,  with help from
public tips. The investigation led to Gibson, who pleaded guilty  to removing asbestos without a license  or
certification, removing asbestos  without  notifying Ohio  EPA,  and illegal disposal  of construction and
demolition debris.
Back to Defendant Summary
                                              Page 11
EPA Bulletin-July 2015

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                                     Plea Agreements
Washington State Homeowner Pleads Guilty to Making False Statement to Federal Authorities --On July 9,
2015, JON KOLOSKI, of Potlach in Mason County, Washington, a Hood Canal waterfront property owner,
pleaded guilty in federal district court for the Western District of Washington to the federal felony offense of
making a false statement to a federal official  in connection  with his unlawful construction of a beachfront
bulkhead. Koloski constructed the bulkhead in September 2011, without the appropriate permit from the
U.S. Army Corps of Engineers.  He had been told  by both  Mason County officials and the Corps that he
needed the federal permit to construct the bulkhead. After he failed to complete the permit process,  and
after the new bulkhead had been installed, Koloski falsely told the U.S. Army Corps of Engineers via  email
that he  no longer needed  the permit as he was not going to replace the previously existing bulkhead. A
subsequent inspection by the Corps of Engineers revealed the bulkhead had already been constructed  and
was in violation of federal and state rules. Koloski is scheduled to be sentenced on October 5, 2015.  In
                                                 I addition to the criminal charge, Koloski also settled
                                                 I civil violations of the federal Clean Water Act.
                                                        According  to  the  plea  agreement, Koloski
                                                 I admits that in the late 1990s he started exploring the
                                                 replacement  of  the  existing  bulkhead  at  his
                                                 beachfront property.   He was told by Mason County
                                                 I authorities that any new bulkhead had to remain on
                                                 the footprint of the existing bulkhead, and could not
                                                 extend further  than  6 feet past the ordinary high
                                                 water mark.   Koloski was also informed that  any
                                                 work that extended beyond the ordinary high  water
                                                 mark had to be approved and permitted by the  U.S.
                                                 I Army Corps of Engineers.  In early 2010, Mason
                                                 : County issued permits for a new bulkhead  6 feet past
                                                 the ordinary  high  water mark.  In June  2010, an
                                                 official with  the  U.S.  Army  Corps of  Engineers
                                                 informed Koloski  that he  needed to  apply  for a
                                                 permit. In paperwork submitted to the Corps, Koloski
                                                 said  the bulkhead would be  ten feet  past  the
                                                 ordinary high water mark.  The Corps asked for more
                                                 information  on the  project,  but  Koloski did  not
                                                 respond and in  September 2010 the permit process
                                                 was cancelled.
                                                       In October 2010, Koloski revived the process
                                                 by submitting some of the required information  and
                                                 he  was  informed  of the  time  frame  for permit
 Koloski's beachfront property before construction of the bulk-  approva|. StiN without a permit, in  mid-2011 Koloski
                                                 went  forward and hired a contractor. In September
                                                 2011 Koloski had the bulkhead installed ten feet past
head (top) and after (bottom).
                                             Page 12
                                                           EPA Bulletin-July 2015

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                                     Plea Agreements
the ordinary high water mark.  The Corps of Engineers was unaware of the construction and sent Koloski
information on specific requirements for a permit in early 2012. Koloski responded in April 2012 that due to
financial considerations he no longer planned to build the new bulkhead and asked that his application for a
permit be withdrawn.  Koloski sent the email some six months after having the new bulkhead constructed.
In May 2012, a Corps of Engineers inspector visited the Koloski property and discovered the new bulkhead
had been  constructed  without a permit and in violation of rules  regarding the distance seaward from the
ordinary high water mark.
       Koloski has agreed to pay  $60,000  in civil penalties and  $60,500  to the Hood Canal Coordinating
Council for mitigation of salmon habitat to offset environmental impacts associated with construction of the
bulkhead. In addition,  the civil settlement requires habitat restoration at the site of the bulkhead to remedy
habitat loss.
      The case  was investigated by EPA's  Criminal Investigation Division, the Mason County, Washington
Department of Ecology, Washington Department of Fish and Wildlife, the U.S. Army Corps of Engineers, and
the National Oceanic and Atmospheric Administration.  It is being prosecuted by Assistant United States
Attorney James Oesterle.

Back to Defendant Summary
       More photographs of Koloski's beachfront property before construction of the bulkhead (left) and after (right).
                                              Page 13
EPA Bulletin-July 2015

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                               Indictments/Information!
Puerto Rico Construction Company and Its Executive Owner Indicted for CAA Violations --On July 13, 2015,
AIREKO CONSTRUCTION COMPANY was charged by a grand jury in federal district court for the District of
Puerto Rico with illegal removal of asbestos during the renovation of the 9th floor of the Minillas North Tower
in May 2012.
       The grand jury charged Aireko with five counts of failing to comply with the National Emission
Standards for Hazardous Air Pollutants (NESHAP) by failing: (1) to  adequately wet the asbestos during the
removal; (2) to have a properly trained supervisor on  site during the removal; (3) to properly place the
asbestos in leak tight bags; (4) failing to properly label the asbestos containing waste material; (5) to properly
dispose of the asbestos containing material at an authorized land fill. Count Six charges the defendant with
failing to notify immediately the appropriate government agency of the release of a reportable quantity of a
hazard substance-asbestos.
       The indictment alleges that between Saturday 12 and Sunday May 13, 2012,  subcontractors, working
within the scope of their employment and at least  in part for the benefit Aireko, removed ceiling materials
containing more than 1 percent asbestos and placed the asbestos  containing materials in the trash area in
back of the Minillas  North Tower. The failure to notify charge focuses on conduct of corporate officials who
discovered the release of asbestos on Monday, May 14, and failed to make the appropriate notifications.
       The illegal  removal of the asbestos containing ceiling material and transporting  it down to the trash
area without following the NESHA work practice requirements resulted in the contamination of the entire
office building. The building was ordered closed by  the Public Building Authority on May 20, 2015.  Clean-up
required almost one year to complete.
       In a related matter, EDGARDO ALBINO was charged with failing to notify immediately the appropriate
government  agency of the  release of a reportable quantity  of a hazard substance-asbestos.  Albino, of
Caguas, Puerto Rico, is the vice-president of operations and executive owner of Aireko. He was the senior
Aireko employee responsible for supervising the ninth floor renovation.
       The case was investigated by EPA's Criminal Investigation Division. It  is being prosecuted by Howard P.
Stewart, Senior Litigation Counsel, Environmental Crimes Section of the Department of Justice Washington,
D.C., and Assistant United States Attorney Mariana E. Bauza-Almonte with assistance from Carolina Jordan-
Garcfa, EPA Region II Criminal Enforcement Counsel. The charges and allegations are merely accusations, and
the defendant  is presumed innocent unless and  until proven guilty.

Back to Defendant Summary
                                              Page 14                      EPA Bulletin-July 2015

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                               Indictments/Information!
South Carolina  Man  Indicted for  Illegally Storing Hazardous Waste at  Camden.  New Jersey.  Chemical
Company Facility and Making False Statements to EPA -- On July 17, 2015,  MIGUEL CASTILLO, of Hilton
Head, South Carolina, former president and CEO of Concord Chemical Co. Inc. (Concord) was charged by a
federal grand jury in federal district court for the District of New Jersey with one count of storing hazardous
waste at Concord's Camden, New Jersey, facility in violation of the Resource Conservation and Recovery Act
and two counts of making false statements to the EPA.
      According to the  indictment: RCRA was enacted in 1976 to address a growing nationwide problem
with industrial and municipal waste. RCRA was designed to protect human health and the  environment by
prohibiting the treatment, storage or disposal of any hazardous waste  without a permit. The Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA) authorizes the EPA to remove hazardous
waste from  industrial sites and hold responsible parties liable for the costs.
      Concord  manufactured, repackaged and distributed a wide variety of chemical products, including
cresylic acid, soaps, waxes, pipe lubricants and  emulsions. Some of Concord's products and the raw materials
used to make them were hazardous. Castillo  was Concord's president or CEO from 2003  through  August
2011. He also served as the  president  and  director of another company, KW Inc.,  which  repackaged  and
distributed commercial laundry products while leasing space from Concord's Camden facility from May 2008
through the fall of 2009. Neither Concord nor KW had a permit to store  hazardous waste at the Camden
facility.
      While Castillo was in charge of Concord,  drums  containing hazardous waste were  stored in  the
Camden facility  basement. In 2004 and 2005, Concord employees attempted  to remove those drums but
allegedly never finished due to claims by Castillo that Concord could not afford to remove additional drums.
      By March 2010, Concord and KW had ceased operations at Concord's Camden  facility. In August 2010,
the EPA conducted a site visit and discovered that the facility was devoid of employees, left in a deteriorated
condition and filled with drums  containing  corrosive and ignitable hazardous waste. From October 2010
through March 2011, the EPA removed the hazardous substances from  the facility.
      On September 1, 2011, EPA requested information  from Castillo in  order  to identify the  parties
responsible for  EPA's removal costs. When  Castillo responded to the EPA's requests, he failed to identify
himself as Concord's president and CEO  or KW's president and director.
      The  illegal storage of hazardous waste charge and each of the  false statements  charges carry a
maximum penalty of five years in  prison  and a $250,000 fine, or twice the gain or loss caused  by the offense.
      The case was investigated by EPA's Criminal Investigation Division.  It is being prosecuted by Assistant
U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney's Office Health Care and Government Fraud  Unit in
Newark. The charges and allegations against Castillo are merely accusations, and the  defendant is presumed
innocent unless  and until proven guilty.

Back to Defendant Summary
                                             Page 15                     EPA Bulletin-July 2015

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