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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. 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.
December 2015
In This Edition:
• David L. Frisby — Region 2
• David Dunham, Ralph Tommaso, William Barnes — Region 2
• MAB Environmental Services, Inc., Matthew Brozena — Region 3
• Chem-Solve Inc. — Region 3
• Cherry Way, Inc., Elaine Chiu — Region 6
• JACAM Manufacturing LLC — Region 7
&EPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-15-012
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Defendant Summary
Region
Defendants
Case Type/Status
Region 2
David L. Frisby
Wire fraud to illegally dispose of metal waste
Region 2
David Dunham, Ralph Tommaso,
William Barnes
Renewable Energy Program/Providing false state-
ments to the government, wire fraud, tax fraud, and
obstruction of an IRS audit and a U.S. Department of
Agriculture examination
Region 3
MAB Environmental Services,
Inc., Matthew Brozena, and oth-
ers
CWA/Knowingly violating permit conditions, tamper-
ing with required monitoring devices and methods,
false reporting, conspiracy
Region 3
Chem-Solv Inc.
RCRA/lllegal storage and transportation of hazardous
waste
CAA/Knowingly failed to notify and report demolition
of a riverboat
Region 6
Cherry Way, Inc., Elaine Chiu
Region 7
JACAM Manufacturing, LLC
SWDA, RCRA/Unlawful disposal of hazardous waste
into a salt water disposal well
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EPA Bulletin—December 2015
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Plea Agreements
Former New York Resident Pleads Guilty to Fraud Scheme -- On December 11, 2015, DAVID L. FRISBY, of
Kiln, Mississippi, pled guilty in federal district court for the Northern District of New York to one count of
conspiracy to commit wire fraud in connection with a scheme to defraud scrap metal brokerage firms. The
guilty plea included his admission to soliciting contracts for the disposal of batteries and other metal waste
under false pretenses.
Frisby, formerly of Fultonville, New York, admitted that he and his co-conspirators falsely held
themselves out to be representatives of a scrap metal recycling firm that was authorized by EPA to dispose of
metal waste by shipping it to Korea, and that they defrauded business and individuals by charging them for
recycling services that were never provided. In reality, Frisby and his co-conspirators were not authorized by
EPA to provide scrap metal recycling services and never intended to provide such services to the victims.
To further the scheme, Frisby, who formerly served as chief executive officer of D & L Heritage
Enterprises, Inc., a New York State domestic business corporation, until its dissolution in 2009, provided his
co-conspirators with D & L Heritage incorporation documents that were fraudulently altered and e-mailed to
victims during the solicitation process. Victims of the fraud scheme transferred at least $154,206 in fraud
proceeds to bank accounts maintained by Frisby, who retained a portion of the funds for his personal benefit
and transferred the remainder to his co-conspirators.
At sentencing on April 27, 2016 at 10:00 a.m. in Syracuse, Frisby faces a maximum term of
incarceration of 20 years and a maximum fine of $250,000. Additionally, the plea agreement requires Frisby
to pay $144,216 in restitution to victims of the fraud scheme, if approved by the Judge.
The case was investigated by EPA's Criminal Investigations Division. It is being prosecuted by
Assistant United States Attorney Sean O'Dowd.
Back to Defendant Summary
Page 3 EPA Bulletin— December 2015
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Plea Agreements
Kansas Chemical Manufacturer Pleads Guilty to SWDA and RCRA Violations -- On December 22, 2015,
JACAM MANUFACTURING, LLC, of Sterling, Kan., a chemical manufacturing company, pleaded guilty in
federal district court for the District of Kansas to unlawfully disposing of hazardous waste into a salt water
disposal well and paid a $1 million fine.
The company pleaded guilty to one count of violating the federal Safe Water Drinking Act and one
count of violating the Resource Conservation Recovery Act. In the plea, the company admitted to disposing
of hazardous wastes in an injection well permitted only for the disposal of salt water. JACAM admitted it was
unlawfully disposing of acetone, benzene and other hazardous chemicals into a salt water disposal well.
The case was investigated by EPA's Criminal Investigation Division and the Kansas Department of
Health and Environment. It was prosecuted by Assistant U.S. Attorney Alan Metzger.
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The JACAM Manufacturing truck at the injection well unlawfully disposing of hazardous waste
when the search warrant was served.
fr ®
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EPA Bulletin— December 2015
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Plea Agreements
VirRinia Chemical Distributor Pleads Guilty to MleRally StorinR and TransportinR Hazardous Waste - On
December 22, 2015, CHEM-SOLV INC. (Chem-Solv), formerly known as Chemicals & Solvents Inc., pleaded
I guilty in federal district court for the Western District of Virginia to illegally
storing hazardous waste at its facility in Roanoke, Virginia, and to illegally
transporting hazardous waste from that facility to another location.
As a part of the plea agreement, Chem-Solv has agreed to pay a $1
million criminal fine for these violations, as well as an additional $250,000 to
fund environmental community service projects. Chem-Solv has agreed to serve
five years' probation, during which time it must develop and implement an
environmental compliance plan and be subjected to yearly independent
environmental audits. In conjunction with the criminal settlement, the U.S.
Environmental Protection Agency has reached a civil settlement with Chem-Solv
that requires the company to pay a $250,000 penalty to settle alleged violations
of improper hazardous waste storage at Chem-Solv's Roanoke facility.
Chem-Solv operates a chemical blending and distribution facility in
Roanoke as well as distribution facilities in Colonial Heights, Virginia, Rock Hill,
South Carolina, and Piney Flats, Tennessee. Chem-Solv is in the business of
purchasing chemicals and then reselling them to customers, either directly or
after repackaging. As part of its ordinary business practices, Chem-Solv
generated hazardous waste. A hazardous waste is waste which, because of its
designation, quantity, concentration, or characteristics, poses a substantial
present or potential hazard to human health or the environment.
Count one of the information is based on a spill of several hundred
gallons of ferric chloride - a hazardous substance - on the Chem-Solv facility in
Roanoke in June 2012. Although most of the waste was cleaned up using
vacuum trucks, some of the ferric chloride flowed from the Chem-Solv facility
onto an adjoining property both before, and during, the cleanup. The pleadings
allege that the adjoining property owner was not notified that ferric chloride
Drums with chemical waste had leaked onto their property. Chem-Solv then employed a waste
found inside a trailer on Chem- transportation company to transport the waste to a disposal facility. Hazardous
Solv'sproperty. Thetrailerwas waste may only be transported by permitted carriers, and it must be properly
found to have hazardous waste p|acarded and be accompanied by a hazardous waste manifest identifying the
waste and its characteristics. The pleadings allege that, although Chem-Solv
was aware of the hazardous nature of ferric chloride, it did not properly test the
waste and instructed the transporter to transport the waste as non-hazardous, without the proper placards
and manifests.
Count two of the information charges Chem-Solv with the improper storage of hazardous
waste. Chem-Solv was given advance notice of an EPA inspection in December 2013. At the time the
that Chem-Solv did not have a
permit to store.
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EPA Bulletin— December 2015
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Plea Agreements
advance notice was given, Chem-Solv was storing numerous containers of chemical waste on its facility that
should have been disposed of properly. The pleadings allege that Chem-Solv directed its employees to load
three trailers with the chemical waste in an attempt to prevent EPA inspectors from discovering it. Two of
the three trailers were taken offsite. The third trailer, which was not road worthy, was stored on the Chem-
Solv property for almost a year and its contents were discovered by law enforcement officers on Nov. 19,
2014, while executing a search warrant. That trailer was found to contain hazardous waste that Chem-Solv
did not have a permit to store on its facility.
The case was investigated by EPA's Criminal Investigation Division and the U.S. Department of
Transportation's Office of Inspector General. Assistance in the investigation was provided by the Virginia
Department of Environmental Quality, Roanoke City Police Department and the Roanoke Fire-EMS
Department and the Blue Ridge Environmental Task Force. The prosecution was handled by Assistant U.S.
Attorney Jennie L. M. Waering, Senior Trial Attorney James B. Nelson of the Department of Justice's
Environmental Crimes Section, and EPA Regional Criminal Enforcement Counsel David Lastra.
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Additional photographs of what was found and sampled inside the trailer on Chem-Solv property.
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EPA Bulletin— December 2015
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Indictments/Information!
California Woman and Company CharRed with Clean Air Act Violation - On December 10, 2015, CHERRY
WAY, INC., and its president, ELAINE CHID, were indicted in federal district court for the Eastern District of
Louisiana with each violating knowing failure to notify and report as required by the Clean Air Act the
demolition of the Mississippi Queen Riverboat, which contained regulated asbestos containing materials.
According to the Bill of Information, on or about April 2, 2011, Cherry Way and Chiu knowingly failed
to notify and report to the Louisiana Department of Environmental Quality the demolition of the Mississippi
Queen Riverboat, a facility, which contained regulated asbestos containing material, to wit: wall and ceiling
tiles, at least ten days prior to the start of the demolition as required by the Clean Air Act.
If convicted, Chery Way faces a maximum term of probation of five years and a fine of $500,000. If
convicted, Chiu faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a
maximum term of supervised release of one year, and a mandatory $100 special assessment.
Note that a Bill of Information is merely a charge and that the guilt of the defendant must be proven
beyond a reasonable doubt.
The case was investigated by EPA's Criminal Investigation Division and the Louisiana Department of
Environmental Quality-Criminal Investigation Division. Assistant United States Attorney Emily K. Greenfield
is in charge of the prosecution.
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Page?
EPA Bulletin—December 2015
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Indictments/Information!
Pennsylvania Company CharRed with Clean Water Act Violations - On December 16, 2015, MATTHEW
BROZENA, of Telford, Pennsylvania, and his company, MAB ENVIRONMENTAL SERVICES, INC., were
charged in federal district court for the Eastern District of Pennsylvania by indictment with conspiracy to
violate the Clean Water Act and other offenses. The indictment also charges the defendants with knowingly
violating permit conditions, tampering with required monitoring devices and methods, and false
reporting. Separate criminal informations have been filed charging James Wetzel, of Harrisburg,
Pennsylvania, James Crafton, of Upper Black Eddy, Pennsylvania, and Stephen Fritz, of in Harleysville,
Pennsylvania, with related environmental violations.
The indictment alleges that Brozena and his company, MAB Environmental Services, Inc., contracted
to operate wastewater treatment plants for its customers BC Natural Chicken and Buckingham Valley Nursing
Center, in compliance with permits issued by the Pennsylvania Department of Environmental Protection to
those facilities. The permits allowed BC Natural and Buckingham to discharge from their wastewater
treatment plants into nearby waters under specified conditions. The permit conditions included that the
operators of the wastewater treatment plants properly operate and maintain the wastewater treatment
plants. The permits also required that the operators test samples of the discharge from the plants for certain
pollutants and report the samples and test results to the PADEP. The permits set limits for the amount of
each pollutant that each facility was allowed to discharge. The charging documents allege that Brozena
directed his employees at MAB, including Wetzel and Fritz, to discard samples when Brozena believed that
the pollutants in the samples would exceed the permit limits. The charges also allege that, at Brozena's
direction, Wetzel, Crafton, Fritz, and other MAB employees falsely reported samples and test results.
If convicted of all charges, MAB Environmental Services, Inc., faces probation and fines; Brozena faces
a significant term of imprisonment, fines, and supervised release; Crafton and Fritz face prison terms and
fines and supervised release; and Wetzel faces a maximum sentence of one year in prison, a fine, and
supervised release. Indictments and Informations are accusations. A defendant is presumed innocent unless
and until proven guilty.
The case was investigated by EPA's Criminal Investigation Division with the assistance of the
Pennsylvania Department of Environmental Protection. It is being prosecuted by Assistant United States
Attorney Sarah L. Grieb and Special Assistant United States Attorney Patricia Miller.
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PageS EPA Bulletin—December 2015
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Indictments/Information!
Owners of LehiRh Valley Companies and Their EnRineer CharRed In Green EnerRy Fraud Scheme - On
December 21, 2015, DAVID DUNHAM, of Bethlehem, PA, and RALPH TOMMASO, of Warren, NJ, were
charged in federal district court for the Eastern District of New York by indictment, unsealed, with engaging
in a multi-million dollar conspiracy to defraud individuals and the United States in a green energy scam
involving used cooking oil. They are charged with conspiracy, providing false statements to the government,
wire fraud, tax fraud, and obstruction of an IRS audit and a U.S. Department of Agriculture examination.
From 2010 through 2012, in Wind Gap, Allentown, Bethlehem, and elsewhere, Dunham and
Tommaso operated, respectively, the companies Smarter Fuel, Inc. (Smarter Fuel) and Environmental Energy
Recycling Corporation, LLC (EERC), coordinating the activities of these companies, and then formally merging
under the umbrella of Greenworks Holdings, LLC (Greenworks). According to the 101-count indictment, the
defendants falsely claimed to have produced and sold renewable fuel for which they misappropriated
approximately $50 million in payments, subsidies, and other benefits. Dunham and Tommaso allegedly
defrauded government programs intended to encourage the production of renewable fuel as an alternative
to traditional fossil fuel. By claiming credits for renewable fuel they never produced, and that otherwise did
not qualify, Duhnam and Tommaso stole tens of millions of dollars from the United States government. It is
further alleged that Dunham and Tommaso stole millions more by fraudulently claiming and generating
tradable credits that they sold to unsuspecting purchasers who believed these credits satisfied their legal
obligation to introduce a certain quantity of renewable fuel per year.
The defendants, through their companies, collected used cooking oil from restaurants and other food
service locations, sometimes processing it to remove hard particles, water, and other waste. They then sold
this cleaned cooking oil primarily to renewable fuel producers that used it as a "feedstock" ingredient in their
production process.
Dunham and Tommaso did not sell their cleaned used cooking oil as a final fuel, but allegedly
fraudulently claimed otherwise, applying for and receiving government subsidies for every gallon of cleaned
used cooking oil that they produced, plus more. Their claims vastly exceeded their actual production. In
2010, Dunham and Tommaso allegedly claimed subsidies and other payments on more than 917.5 million
gallons of product, when they produced less than six million gallons. In 2011, Dunham and Tommaso
allegedly claimed subsidies and other payments of more than 18 million gallons, when they only produced
about 7.5 million gallons. Of the cleaned used cooking oil they did produce, the vast majority did not qualify
for credit or subsidy. The defendants' allegedly fraudulent claims included more than one million gallons of
the wastewater that was the byproduct of their processes to clean debris and pollutants from used cooking
oil, the non-fuel sales of their product as a feedstock ingredient to be used by biofuel producers in buyers'
production of biofuel, and transactions that existed on paper only, where the defendants did not produce or
even possess the product for which they generated subsidies.
The indictment alleges that Dunham and Tommaso provided false information and altered and forged
documents and records to government and private auditors in an effort to conceal their fraud. They
allegedly directed employees to alter the documentation of obviously unqualified sales and change them to
show sales that qualified for subsidies and other payments.
Dunham is also charged with underreporting his taxable income for the tax years 2009 and 2010. In
his filings for these years, Dunham allegedly altered the dates on sales invoices, and delayed generating
Page 9 EPA Bulletin—December 2015
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Indictments/Information!
invoices on other sales, in order to avoid paying taxes on these sales until a subsequent tax year. He also
allegedly obstructed an IRS audit of Smarter Fuel.
In a related matter, William Barnes, a professional engineer, was charged by information, unsealed,
with two counts of conspiring to provide false statements to the U.S. EPA. Barnes was allegedly hired to help
the companies in Wind Gap and in Allentown register for the EPA's program as renewable fuel producers and
allegedly conspired with the company owners to provide false Engineering Reports to the EPA.
If convicted, Dunham and Tommaso each face a substantial prison term, supervised release, a
possible fine, and potential criminal forfeiture of up to $50 million. Dunham faces a $8,700 special
assessment; Tommaso faces a $8,400 special assessment. Barnes faces a statutory maximum possible
sentence often years in prison, supervised release, a possible fine, and a $200 special assessment.
The case was investigated by EPA's Criminal Investigation Division, IRS Criminal Investigations,
Department of Agriculture-Office of Inspector General, U.S. Postal Inspector Service, and the Federal Bureau
of Investigation Allentown Resident Agency. It is being prosecuted by Assistant United States Attorneys
Nancy E. Potts and John Gallagher.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Back to Defendant Summary
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EPA Bulletin—December 2015
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