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Environmental Crimes
Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
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Defendant Summary
Sentencing
Plea Agreements
Indictments/
Informations
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.
October 2015
In This Edition:
• Christopher Garrity — Region 1
• Cory Hammond, Robert "Mike" White, LuAnne LaBrie — Re-
gion 5
• Walter Oil & Gas Corporation — Region 6
• Lachele Rene Thrower — Region 9
• Waste Management of Hawii, Inc., Joseph R. Whelan, Justin H.
Lottig — Region 9
• Max Spatig — Region 10
• James Slade — Region 10
f/EPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-15-010
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Defendant Summary
Region
Defendants
Case Type/Status
Region 1
Christopher Garrity
CWA/Knowingly illegally discharging a pollutant into
a river without a permit
Region 5
Cory Hammond, Robert "Mike"
White, LuAnne LaBrie
CAA/lllegal asbestos release
Region 6
Walter Oil & Gas Corporation
CWA/Charged with failing to notify appropriate fed-
eral agency of a hazardous waste spill
Region 9
Lachelle Rene Thrower
RCRA/False statements and embezzling
Region 9
Waste Management of Hawaii,
Inc., Joseph R. Whelan, Justin H.
Lottie
CWA/Negligently discharging pollutants into U.S. wa-
ters without NPDES permit
Region 10
Max Spatig
RCRA/Knowingly illegally storing and disposing of
hazardous waste without federal or state permit
Region 10
James Slade
CWA/Polluting river with turbid wastewater
Page 2
EPA Bulletin— October 2015
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Sentencings
Hazardous waste materials illegally stored and disposed of by Max Spatig.
Idaho Man Sentenced for Illegally Storing and Disposing of Hazardous Waste - On October 8, 2015, MAX
SPATIG, of Rexburg, Idaho, the owner of MS Enterprises, was sentenced in federal district court for the
District of Idaho to 46 months in prison for
knowingly storing and disposing of
hazardous waste on a property near
Rexburg. He was also ordered to pay
$498,652 in restitution, and serve three
years supervised release following his
release from prison. Spatig was indicted by
TT; a federal grand jury on December 11, 2012,
' jj and convicted following a two-week jury
trial in June.
According to the evidence
" introduced at trial, on July 8, 2010, a total of
13,478 containers of hazardous waste
I materials were found on the property
outside of Rexburg. Many of the containers
were labeled as containing hazardous
materials and many were corroded. They
had been left outdoors for years. Samples taken from some of the containers confirmed that the contents
were hazardous waste due to ignitability and corrosivity characteristics. Ignitable materials catch fire at
relatively low temperatures and present a dangerous fire hazard. Corrosive materials cause other materials
to dissolve on contact. The contents of the containers were shipped to a hazardous waste disposal facility,
incurring a cost to the federal government of $498,652. Neither MS Enterprises nor Spatig had any permits
from EPA or the Idaho Department of Environmental Quality that would have covered the operation of a
hazardous waste dump.
Spatig had engaged in similar conduct before. In 2005, the state of Idaho cleaned up hazardous waste
from another property belonging to Spatig near Menan in Jefferson County, Idaho. The cost of that cleanup
was $188,000. Previous to 2005, Spatig engaged in similar conduct in Kaysville, Utah. Because of multiple
violations of court-orders prior to trial and offenses committed while on pre-trial release, Spatig has been
held in custody since September 11, 2014.
The case was investigated by EPA's Criminal Investigation Division, the Idaho Department of
Environmental Quality, and the Madison County Sheriff's office. It was prosecuted jointly by the U.S.
Attorney's Office and the Environmental Crimes Section of the U.S. Department of Justice.
Back to Defendant Summary
PageS
EPA Bulletin— October 2015
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Sentencings
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California Asbestos Trainer Sentenced for Sale of False Certificates - On October 23, 2015, LACHELLE RENE
THROWER was sentenced in federal district court for the Southern District of California to serve three years
on probation and pay a $100 special assessment. No fine was ordered. A restitution hearing was scheduled
for December 7, 2015. She was sentenced for 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 August 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 certifications caused her employer to falsely report to the EPA-delegated agency (Cal/OSHA)
that certain individuals 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
Response Act of 1986 (AHERA), as well as the Toxic Substances Control Act (TSCA). Section 206(a) of TSCA
prohibits 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 program 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).
The case was investigated by EPA's Criminal Investigations Division and the FBI.
Back to Defendant Summary
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Page 4
EPA Bulletin— October 2015
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Sentencings
Three MichiRan Individuals Sentenced in Major Asbestos Release Case - On October 28, 2015, CORY
HAMMOND and ROBERT "MIKE" WHITE each were sentenced in federal district court for the Western
District of Michigan to three years' probation and pay $154,604 restitution to the EPA Superfund. And, on
October 27, 2015, LUANNE LABRIE,
formerly known as LuAnne McClain, was
sentenced to three years' probation and
combined restitution of $897,325, of
which $175,841 is payable to IRS, and
$721,484 of which is payable to EPA.
The three were sentenced for their roles
in violating the Clean Air Act in what
environmental investigators believe may
be the largest asbestos release in
Michigan since it was declared a
hazardous air pollutant in 1971.
The three each pled guilty to the
--^^ ; I felony offense of failing to notify federal
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material would be stripped and removed
at the former power generation facility
located in Comstock Township,
Michigan. Hammond and White each pled guilty to failing to adequately wet asbestos material while
stripping and removing asbestos inside that facility, also a felony violation.
In 2011, LaBrie, Hammond, and White agreed to salvage valuable material from the facility and share in
the proceeds. All three knew that asbestos was present inside of the facility. LaBrie supervised and controlled
the facility, visited the site on a regular basis, and communicated with White and Hammond concerning the
status of the salvage operation. Despite knowing that Hammond, White, and other laborers were stripping
and removing asbestos insulation from pipes and facility components, LaBrie failed to notify EPA or the state
of Michigan that the salvage operation would involve the removal of asbestos inside the facility. Hammond
and White admitted to failing to adequately wet asbestos material that had been stripped and removed until
it was collected and sealed in a leak-tight container to prevent the release of asbestos particulates during the
salvage operation. The three individuals agreed to pay restitution to the EPA for remediation costs associated
with the illegal asbestos removal at the facility.
The case was investigated by EPA's Criminal Investigation Division, the Michigan Department of
Natural Resources Environmental Investigation Section, and the Internal Revenue Service. It was prosecuted
by Assistant U.S. Attorney Christopher O'Connor and U.S. Attorney Patrick Miles.
Back to Defendant Summary
The Morrow Power Plant was the former power generation facility in which
asbestos material was illegally stripped and removed.
PageS
EPA Bulletin— October 2015
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Sentencings
Waste Management of Hawaii's Waimanalo Gulch Landfill
after the massive rain events in December 2010—January
2011. Waste Management never installed the stormwater
Hawaii Waste ManaRement Company and Two of its Officers Sentenced for NeRJiRently DischarRinR
Pollutants into U.S. Waters - On October 26, 2015, WASTE MANAGEMENT OF HAWAII, INC., (WMH),
JOSEPH R. WHELAN, the company's general manager and vice president, and JUSTIN H. LOTTIG, the
company's environmental protection manager, were sentenced in federal district court for the District of
Hawaii. WMH was sentenced to pay a $400,000 fine;
$200,000 in restitution (with $100,000 payable to the Ko
Olina Community Association and $100,000 payable to
the Malama Learning Center on the leeward shore of
Oahu for implementation of water quality monitoring
and erosion control projects); and pay a $250 special
assessment to the Court. Whelan was sentenced to pay
a total criminal fine of $25,000. Lottig was sentenced to
pay a total criminal fine of $25,000. They were
sentenced for negligently discharging pollutants into a
water of the U.S. without having a National Pollutant
Discharge Elimination System (NPDES) permit.
The charges stem from illegal discharges of
diversions required by their permit which is what caused the contaminated storm water from the Waimanalo Gulch
flooding and pollutants to be discharged. Sanitary Landfill into Hawaii's coastal waters after heavy
rainfalls in December 2010 and January 2011. WMH was
permitted to discharge storm water from the landfill to the Pacific Ocean under a NPDES permit issued by the
Hawaii Department of Health Clean Water Branch. The storm water was required to go through the landfill's
storm water management system to ensure that it did not come into contact with waste in the landfill before
being discharged to Hawaii's coastal waters.
The NPDES permit prohibited WMH from
causing or contributing to a violation of I
Hawaii's state water quality standards.
The case was investigated by EPA's
Criminal Investigation Division with the
assistance of the DOH-CWB. It is being
prosecuted by Assistant U.S. Attorney Marshall I ' * ^
Silverberg of the U.S. Attorney's Office for the '
District of Hawaii and Senior Trial Attorney
Daniel Dooher of the Justice Department's
Environmental Crimes Section of the
Environment and Natural Resources Division.
Back to Defendant Summary
Medical waste that originated from Waste Management of Hawaii's
landfill that washed up on the beaches.
PageS
EPA Bulletin— October 2015
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Plea Agreements
Maine Man Pleads Guilty to CWA Violation - On October 27, 2015, CHRISTOPHER GARRITY, of Leeds,
Maine, pleaded guilty in federal district court for the District of New Hampshire to a one-count information
alleging that he discharged a pollutant into a navigable water, in this case the Piscataqua River, without a
permit, in violation of the federal Clean Water Act. Garrity will be sentenced on February 2, 2016. He faces a
statutory maximum sentence of three years and a possible maximum fine of not less than $5,000 nor more
than $50,000 per day of violation. If Garrity is sentenced to prison he will also serve a period of supervised
release that begins upon his release from prison.
On June 26, 2013, agents of EPA's Criminal Investigations Division were called to the New Hampshire
facility of Grimmel Industries, L.L.C., after the Portsmouth Harbor Master discovered polluted water from a
tanker truck located on the Grimmel facility being discharged through a hose directly to the Piscataqua
River. Garrity was employed as the terminal manager at the time of the discharge and he was aware that the
tanker truck storage of the polluted water was part of a civil agreement between Grimmel Industries and the
EPA to avoid discharges to the river. An investigation by the EPA identified Garrity as the individual
responsible for connecting the hose to the truck and allowing the discharge to the river.
The case was investigated by EPA's Criminal Investigation Division with assistance from the Portsmouth
Harbor Master's Office of the Pease Development Authority, Division of Ports and Harbors. Assistant U.S.
Attorney Alfred Rubega is prosecuting the case.
Back to Defendant Summary
EPA's National Enforcement Investigations Center (NEIC) Engineers and Region 1 Office of
Environmental Measurement and Evaluation (OEME) technicians perform on-site testing to
prove the direct discharge of pollutants to the Piscataqua River.
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EPA Bulletin— October 2015
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Trials
Canadian Mine Operator Convicted of CWA Crimes - On October 8, 2015, JAMES SLADE, of Calgary, Canada,
was convicted after a two week jury trial in federal district court for the District of Alaska of violating the
federal Clean Water Act by polluting the Salmon River with turbid wastewater from the Platinum Creek Mine
he was in charge of operating. A sentencing hearing is scheduled
(for November 12, 2015, and Slade was ordered to surrender his
Canadian passport and remain in the United States pending his
sentencing. Slade faces maximum penalties of one year in jail and
| a $100,000 fine for each of the two counts of conviction.
Slade was the chief operating officer for XS Platinum, the
Icompany that owned the mining claims, and he is the third
manager or senior executive of that company to be convicted in
Turbid process water from placer mining at the tnis case' Robert Pate' wno was employed as the mine manager
Platinum Creek mine was illegally discharged previously pled guilty to violating the Clean Water Act, along with
into Platinum/Squirrel Creek. James Staeheli, the prior processing plant manager, who also pled
guilty to a Clean Water Act crime. All three individuals worked for
the now defunct XS Platinum, Inc. That company was registered in name only in Delaware, and was 100
percent owned by an offshore company. Two other senior executives from XS Platinum, both Australian
citizens, were also indicted but have refused to return to the United States to stand trial on the charges.
Evidence was presented at trial that the discharges from the mine were hundreds of times over the
legal limits set in the National Pollution Discharge Elimination System (NPDES) water quality permit issued for
the mine. The jury deliberated for two days before convicting Slade of two misdemeanor Clean Water Act
crimes for discharging polluted wastewater during the 2010 and 2011 mining seasons in violation of the
NPDES permit. The jury was deadlocked and could not reach a decision on several felony violations, and
found Slade not guilty on other charges, including finding him not guilty of making a false annual report to
the Alaska Department of Conservation that was submitted by another senior manager. That manager,
Robert Pate, has previously pleaded guilty to making that false statement.
The Salmon River is located in Western Alaska, running past the Platinum Creek Mine and emptying
into Kuskokwim Bay. It passes through the Togiak National Wildlife Refuge before entering the bay, and all
five species of Alaska Salmon spawn in the river. Evidence at trial was that a flow of up to 1200 gallons per
minute of wastewater was discharged from the mine's processing plant into one or more settling ponds that
were not lined, and that did not contain the wastewater. Instead, the wastewater flowed out of the ponds
and into the Salmon River, turning it from crystal clear to dirty brown.
The case was investigated by EPA's Criminal Investigation Division and the U.S. Department of Interior
Bureau of Land Management Office of Law Enforcement and Security. It was prosecuted by First Assistant
U.S. Attorney Kevin Feldis with Chris Costantini, as senior trial attorney from the Department of Justice's
Environmental Crimes Section.
Back to Defendant Summary
PageS EPA Bulletin—October 2015
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Indictments/Informations
Texas-Based Oil Company CharRed with FailinR to Notify of Hazardous Waste Spill - On October 9, 2015,
WALTER OIL & GAS CORPORATION, a Texas corporation domiciled in Houston, Texas, was charged in a one-
count Bill of Information with a felony violation of failing to immediately notifying the proper agency of a
hazardous waste spill in connection with its oil and gas production activities in the Gulf of Mexico.
According to the Bill of Information, on or about March 31, 2014, in the navigable waters of the
United States and within the Eastern District of Louisiana, Walter Oil & Gas Corporation, an entity in charge
of an offshore facility from which hazardous substances were discharged in a quantity which may be harmful
into navigable waters of the United States, failed to immediately notify the appropriate agency of the United
States government as soon as it had knowledge of the discharge.
The case was investigated by EPA's Criminal Investigation Division and the Criminal Investigation
Division of the Louisiana Department of Environmental Quality. It is being prosecuted by Assistant United
States Attorney Jon Maestri.
(A Bill of Information is merely a charge and that the guilt of the defendants must be proven beyond a
reasonable doubt.)
Back to Defendant Summary
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EPA Bulletin—October 2015
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