Defendant Summary
Sentencing
Plea Agreements
Indictments/
informations
Environmental Crimes
Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
This bulletin summarizes publicized investigative activity and adjudicated cases
conducted by OCEFT Criminal investigation Division special agents, forensic specialists,
and legal support staff. To subscribe to this monthly bulletin you may sign up for
email alerts on our publications page.
February, 2017
In This Edition:
• Berkshire Power Company (BPC), Power Plant Management
Services, Inc. (PPMS) — Region 1
• Adres Pichardo — Region 1
• Mahone/s Auto Mall, Andrew Fuller — Region 2
• International Petroleum Company of Delaware (IPC) — Region 3
• Global Environmental Services, Kenneth Gravitt — Region 4
• Daren Lewis (Roberson Excavation) — Region 4
• Adam D. Boylen — Region 5
• Grede, LLC, Grede II, LLC — Region 5
• Alden Leeds, Inc — Region 6
• John Purviance — Region 6
• Patrick Keough — Region 7
• Ahmed el-Sherif — Region 7
• Gary Christiansen — Region 7
• Wood Group PSN Inc. — Region 9
• Peiwen Zhou, AK Scientific — Region 9
• Allen Smith — Region 9
• Lonny Howard — Region 10
&EPA
United States
Environmental Protection EPA Pub. 310-N-15-007
Agency
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Defendant Summary
Region
Defendants
Case Type/Status
Region 1
Region 1
Region 2
Region 3
Region 4
Region 4
Region 5
Region 5
Region 6
Region 6
Region 7
Region 7
Region 7
Region 9
Region 9
Region 9
Region 10
Berkshire Power Company (BPC), Power Plant Sentencing
Management Services, Inc. (PPMS)
Adres Pichardo
Mahoney's Auto Mall, Andrew Fuller
Daren Lewis (Roberson Excavation)
Adam D. Boylen
Grede, LLC, Grede II, LLC
Alden Leeds, Inc
John Purviance
Patrick Keough
Ahmed el-Sherif
Gary Christianson
Wood Group PSN Inc.
Peiwen Zhou, AK Scientific
Allen Smith
Lonny Howard
Indictment
Sentencing
International Petroleum Company of Delaware Sentencing
(IPC)
Global Environmental Services, Kenneth Gravitt Indictment
Plea Agreement
Indictment
Indictment
Sentencing
Plea Agreement
Sentencing
Indictment
Plea Agreement
Sentencing
Indictment
Sentencing
Sentencing
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Sentencings
Western Massachusetts Power Plant Owner and Management Companies Sentenced for Tampering and
False Reporting - Settlement Requires Companies to Pay Fines and Payments Totaling Over $7 Million
BOSTON - Berkshire Power Company (BPC) and Power Plant Management Services, inc. (PPMS) were sen-
tenced n U.S. District Court in Springfield for tampering with air pollution emissions equipment, and PPMS
was also sentenced for submitting false information to both environmental and energy regulators relating to
the Berkshire Power Plant ("the Plant") in Agawam, Mass.
BPC was sentenced to pay $2.75 million in criminal fines for violations of the Clean Air Act, and to make a
$750,000 community service payment to the American Lung Association to fund a program for the replace-
ment of polluting wood burning stoves in western Massachusetts. PPMS was sentenced to pay $500,000 in
criminal fines for violations of the Clean Air Act and Federal Power Act and to make a $250,000 community
service payment to the American Lung Association's wood stove change-out program.
In addition to the criminal fines outlined above, BPC and PPMS have agreed to pay $3,042,563 plus interest
to the Federal Energy Regulatory Commission in civil penalties and disgorgement for their misrepresenta-
tions to ISO-New England regarding the Plant's availability to produce power.
In May 2016, BPC (owner of
Berkshire Power Plant) and
PPMS (the Plant manager)
pleaded guilty to felony
charges that they violated
and conspired to violate the
federal Clean Air Act. These
charges arose from air pollu-
tion monitoring equipment
tampering and related false
emissions reporting between
2009 and 2011. PPMS also
pleaded guilty to violating the
Federal Power Act, the first-
ever criminal charges under this statute, for making false statements to the regional power grid administra-
tor, ISO-New England, regarding the Plant's availability to produce power.
According to documents filed in federal court, between January 2009 and March 2011, BPC engaged PPMS to
manage the Plant, including overseeing day-to-day operations and maintenance and to act as the owner's
representative for the Plant. A PPMS employee served as the Plant General Manager and as BPC's on-site
representative.
PPMS and BPC caused staff at the Plant to tamper with the Plant's air pollution monitoring equipment to
conceal the fact that the Plant was emitting air pollutants in excess of permitted levels. This tampering was
accomplished by intentionally biasing the Plant's Continuous Emissions Monitoring System so it would show
lower emissions levels than were actually being produced by the Plant. BPC and PPMS then used this inaccu-
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Sentencings
rate data in filing required emissions reports with the U.S. Environmental Protection Agency (USEPA) and the
Massachusetts Department of Environmental Protection (MassDEP). The purpose of the tampering was to
avoid lost revenues that would have resulted from reducing power production to stay within the Plant's air
pollution emissions limits, or by taking the Plant out of service to implement needed repairs of the Plant's
pollution control and other equipment.
Excess nitrogen oxide (NOx) emitted from fossil-fuel-burning power plants and mobile sources, like cars and
trucks, combines in the atmosphere with volatile organic compounds emitted from industrial and residential
sources to form ground-level ozone. At ground level, ozone is a respiratory pollutant that can cause many
human respiratory effects, and even premature mortality, especially in vulnerable elderly persons and young
children. NOx emissions also cause environmental damage to coastal waters, aquatic life, and other proper-
ty, and contribute to the formation in the atmosphere of fine particulates that also harm humans, aquatic
life, and vegetation.
During the course of the tampering investigation, criminal investigators also learned that PPMS made and
caused staff at the Plant to make false statements to the ISO-New England, about the Plant's availability to
produce power for the New England grid. They also caused staff at the Plant to falsely claim to the ISO that
the Plant was available to produce power when it was not. PPMS did this to maximize the Plant's revenues
and to minimize repair expenditures.
This case was investigated by EPA's Criminal Investigation Division in Boston, Massachusetts Department of
Environmental Protection, Massachusetts Environmental Crimes Strike Force (an interagency investigative
team dedicated to developing the most significant environmental enforcement cases) and the Massachusetts
Environmental Police. The Assistant U.S. Attorney is prosecuting the federal case with the assistance of EPA's
Criminal Enforcement Counsel.
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Sentencings
Mahoney's Auto Mall And Employee Andrew Fuller Plead Guilty To Environmental Law Crimes — Paid
$187K In Fines
On February 15, 2017, in St. Lawrence County, New York court, Mahoney's pieaded guilty to one count of
Endangering Public Health, Safety or the Environment in the Third Degree. Andrew Fuller pieaded guilty to
one count of Endangering Public Health, Safety or the Environment, in the Fourth Degree.
According to court filings and statements made by the prosecutor, DEC's investigation revealed that in June
2014, Fuller buried drums of used oil, containers of used oil filters, and tires on Mahoney's property. On July
21, 2014, DEC police and regulators executed a search warrant which authorized them to excavate the bur-
ied waste at Mahoney's. During the excavation, DEC investigators discovered four 55-gallon drums contain-
ing approximately 142 gallons of liquid, several containers of used oil filters, and approximately 20
tires. Subsequent laboratory analysis showed that liquid samples from each of the four drums contained the
hazardous substance benzene at levels in excess of .5 milligrams per liter. In addition to benzene, the analy-
sis detected the presence of the hazardous substances toluene, ethyl-benzene, and xylene. Releases of haz-
ardous substances that may enter the environment are illegal.
Additionally, adjacent to the excavated waste area, DEC investigators found an open, unprotected pile of sol-
id waste which measured 33 feet in width by 25 feet in length. The pile of solid waste contained construc-
tion and demolition debris, roofing material, household trash, clothing, furniture and bedding. The disposal
of solid waste at the site constitutes the operation of a solid waste management facility. The DEC subjects
solid waste management facilities to strict operational and closure requirements to avoid potential adverse
impacts to public health and the environment,
and it is illegal to construct or operate such a
facility without first obtaining a permit from
the DEC. According to DEC records, Mahoney's
neither applied for nor received the necessary
permit.
Inside the auto shop, DEC investigators also dis-
covered a concrete channel dug into the floor
which transported spilled automotive fluids in-
to a pit. Once in the pit, the spilled fluids were
discharged onto the ground outside the auto
shop through a pump attached to a garden
hose. DEC investigators collected a soil sample
from the area onto which the garden hose dis-
charged the automotive fluids. Laboratory
testing revealed that this soil was contaminat-
ed with petroleum. DEC officials also discovered
posed of outside on the ground adjacent to the c
Drums, Used Oil Containers, and Tires from Excavated Waste Area on
Mahoney's Property
petroleum-contaminated Speedy Dry which had been dis-
uto shop.
"When business owners fail to properly dispose of hazardous material, it jeopardizes the health of New York-
ers and our natural resources," said Attorney General Schneiderman. "We will continue to ensure that those
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Sentencings
who disregard our environmental laws are brought to justice."
"The long list of egregious waste violations in this case is alarming and shows blatant disregard for the laws
that are in place to protect our environment and the public's health and safety," DEC Commissioner Basil Se-
ggos said. "In some instances, these chemicals can be deadly, and I applaud the work of our Environmental
Conservation Officers (ECOs) and the Attorney General's office in bringing this case to fruition."
In December 2016, a St. Lawrence County Grand Jury charged Mahoney's and Fuller, in a 13-count indict-
ment, with violations of the ECL. The indictment charged both Mahoney's and Fuller with one count of En-
dangering Public Health, Safety or the Environment in the Third Degree and eight counts of Endangering Pub-
lic Health, Safety or the Environment in the Fourth Degree for crimes pertaining to the burial of the hazard-
ous material. Mahoney's was also charged with two additional counts of Endangering Public Health, Safety
or the Environment in the Fourth Degree (for the release of automotive fluids through the garden hose and
the disposal of petroleum-contaminated Speedy Dry) and one misdemeanor count of violating ECL §71-2703
(2)(b)(i), a Class B misdemeanor (for operating an unpermitted solid waste management facility).
Mahoney's paid $150,000 in fines and $7,449.49 in restitution to the DEC for reimbursement of costs for ex-
cavation and laboratory testing, and was sentenced to an unconditional discharge. Fuller paid a $37,500 fine
and is scheduled to be sentenced to three years' probation on April 10, 2017.
The investigation was conducted by the New York State Department of Environmental Conservation (DEC),
and EPA's Criminal Investigation Division.
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Sentencings
International Petroleum Corporation of Delaware (IPC) Sentenced for Environmental Crimes
International Petroleum Corporation of Delaware (IPC) was sentenced on February 2, 2017 to pay a
$1,300,000 fine and $2,200,000 in restitution to the City of Wilmington for environmental crimes, including
Conspiracy to Violate the Clean Water Act.
According to court documents and statements made in court, from 1992 through 2012, IPC operated a facili-
ty located at 505 South Market Street in Wilmington, Delaware, which processed used oil and hydrocarbon-
containing waste water and then sold the reprocessed petroleum to various companies for reuse. The facility
had two components: oil recovery and waste water treatment. The facility's petroleum processing activities
generated waste water, which the company treated at its waste water portion of the facility prior to dis-
charge into a sewer along Market Street owned by the City. It issued IPC a federally-enforceable Clean Water
Act pretreatment permit which governed the types and concentrations of pollutants which IPC could dis-
charge into the City's sewer system. The pretreatment permit required IPC to take "representative" samples
of its waste water on a monthly basis, to determine if it was complying with its permit limitations, and report
its sampling results the City every six months.
IPC admitted that its monthly samples were not representative, as it tampered with, and rendered inaccu-
rate, monitoring methods and a monitoring device required by the Clean Water Act and IPC's federally-
enforceable pretreatment permit.
IPC further admitted to violating the Resource Re-
covery and Conservation Act ("RCRA") by trans-
porting hazardous waste without a "cradle to grave"
hazardous waste manifest. In June and July, 2012,
April and May of 2012, IPC trucked to South Carolina
for disposal sludge ("tank bottoms") which IPC had
removed from its storage tanks. The tank bottoms
were ignitable and contained concentrations of ben-
zene, barium, chromium, cadmium, lead, tetrachio-
roethene (also known as "PCE"), and trichloroethene
(also known as ("TCE"), which each served to classify
the material as RCRA regulated hazardous waste.
"Industrial wastewater can pose serious threats to public health and the environment, so it's imperative that
companies honestly treat and dispose of it properly and sample and report pollutant concentrations honest-
ly," said U.S. Attorney for the District of Delaware Charles M. Oberly III. "Likewise, companies must handle
hazardous waste properly to ensure its proper treatment and disposal. The Department of Justice and EPA
are committed to protecting human health and the environment for all Americans through strong enforce-
ment of environmental laws, especially in environmental justice areas. This conviction and sentence ensures
that the defendant is held accountable with a criminal fine, and pays substantial restitution to the City of Wil-
mington."
This case was investigated by EPA's Criminal Investigation Division. The City of Wilmington Department of
Public Works and the DNREC Solid & Hazardous Waste Management Section assisted in the investigation.
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Sentencings
Chemical Company and Its Owner Sentenced for Rebate Scheme, False Statements to U.S. Customs
On March 2, 2017, Alden Leeds, Inc., a New Jersey swimming pool and spa chemicals company, and its presi-
dent, Mark Epstein, were sentenced in U.S. District Court for convictions related to customs and import viola-
tions. Epstein was sentenced to serve eight months in prison and four months of home confinement for his
role in an elaborate rebate scheme which involved false statements to U.S. Customs, followed by inflated
payments for imported chemicals and then rebates paid back to Alden Leeds, Inc. The company was also sen-
tenced, receiving three years of probation and ordered to pay restitution to Customs in the amount of $2.25
million.
Benjamin C. Glassman, United States Attorney for the Southern Dis-
trict of Ohio, the Environmental and Natural Resources Division of
the Department of Justice, Steve Francis, Acting Special Agent in
Charge, U.S. Department of Homeland Security Investigations (HSI),
Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue
Service (IRS) Criminal Investigation, Angela L. Byers, Special Agent in
Charge, Federal Bureau of Investigation (FBI) and John K. Gauthier,
Acting Special Agent in Charge, U.S. Environmental Protection Agen-
cy (EPA) criminal enforcement program announced the sentences
handed down on February 1 by Senior U.S. District Judge James L.
Graham.
Epstein and Alden Leeds, Inc. had an agreement with a middleman to establish two prices for the imported
chlorine - an "actual price" that the company was paying and a higher "invoice price" that would be used for
documentation at U.S. Customs to avoid suspicions of dumping.
Dumping occurs when foreign merchandise is sold in the United States for less than fair market value, which
prevents fair competition between United States companies and foreign industry.
According to court documents, from 1998 through at least June 2012, various businesses in Columbus, Ohio
served as the American representative for domestic companies seeking to import swimming pool sanitizing
agents from China.
As the middleman, Caiwei Sheng operated the Columbus businesses and engaged in a scheme that involved
using a shell corporation in Vietnam to make it appear that the chlorine was manufactured there instead of
China. This was done to avoid a 286 percent anti-dumping duty or tax that was ordered by the Department of
Commerce beginning in 2005. No such anti-dumping duty existed for Vietnam as it did China.
As part of the rebate scheme, the price of the chlorine was deliberately overstated at Customs when the
chlorine was imported. Sheng would receive payment for the inflated, invoice price and he would then wire
the lesser actual price for the chlorine to the originating companies in Vietnam and China before wiring a re-
bate to Alden Leeds, Inc.
At the request of Alden Leeds, Inc., the rebate was labeled a "consulting fee" and sent to one of the compa-
ny's sister corporations in another state.
Epstein and Alden Leeds,
Inc. had an agreement
with a middleman to es-
tablish two prices for the imported
chlorine - an "actual price" that the
company was paying and a higher
"invoice price" that would be used
for documentation at U.S. Customs
to avoid suspicions of dumping.
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Sentencings
"The Alden Leeds company and its president, Mark Epstein, conspired with others to make false statements
to Customs about the price of the chlorine they were buying from China and Vietnam, in order to avoid po-
tentially higher duties aimed at ensuring fair competition between United States companies and foreign in-
dustry," U.S. Attorney Glassman said. "Now, not only do they have to pay Customs $2.5 million and fines and
forfeiture of $500,000, but Epstein must serve time in federal prison and Alden Leeds will spend three years
on probation. Those who import goods from overseas must tell the truth to Customs and play fair with Amer-
ican companies."
Epstein pleaded guilty on February 1 to one count of conspiracy to make false statements and violate United
States' customs and importation laws and one count of entry of goods by means of false statement. As part
of the plea agreements, Epstein is paying $500,000 in restitution and forfeiture and Alden Leeds, Inc. is pay-
ing $2.25 million in restitution. Alden Leeds, Inc. also agreed to donate 2,765 gallons of hospital grade disin-
fectant to the Ministry of Public Health and Population of Haiti.
Sheng pleaded guilty to violating Customs laws as well as USEPA laws requiring truthful statements concern-
ing the importation of chemicals into the United States, and on August 21, 2015, was sentenced to a prison
term of 12 months and one day in prison and ordered to pay restitution of $100,000.
U.S. Attorney Glassman commended the investigation of this case by HSI, IRS Criminal Investigation, FBI and
U.S.EPA, as well as Assistant United States Attorneys J. Michael Marous and Jessica W. Knight and Depart-
ment of Justice SeniorTrial Attorney Christopher J. Costantini who are representing the United States in this
case.
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Sentencings
Seward Man Sentenced for Clean Air Act Violations
Patrick Keough, 59, of Seward, Nebraska, was sentenced on March 14, 2017 in federal court in Omaha on two
counts of violating the Clean Air Act. Keough was sentenced to six months' imprisonment; after his release
from prison, he will begin a one-year term of supervised release.
Keough is the owner of America's Fiberglass Animals (AFA). AFA
uses gel coats and Hazardous Air Pollutant (HAP) paints to manu-
facture fiberglass animals. The Nebraska Department of Environ-
mental Quality (NDEQ) determined that AFA required a construc-
tion permit and fabric filters in the manufacturing area to operate
its business. Keough continued to operate his business in Shelton,
Nebraska, without securing a permit or installing fabric filters. He
then moved the business to Minden, Nebraska, without advising
NDEQ. and without securing the required permit. The business
continued to operate without fabric filters.
This case was investigated by United States Environmental Protection Agency Region VII. The Nebraska De-
partment of Environmental Quality assisted with the investigation.
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EPA Bulletin— February 2017
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Sentencings
Company to Pay $9.5 Million for False Reporting of Safety Inspections and Clean Water Act Violations that
Led to Explosion in Gulf of Mexico
WASHINGTON - Wood Group PSN Inc., a Nevada corporation headquartered in Houston, Texas, was ordered
to pay $9.5 million in two separate cases involving their conduct in the Gulf of Mexico. Specifically, Wood
Group PSN was ordered to pay $7 million for falsely reporting over several years that personnel had per-
formed safety inspections on offshore facilities in the Gulf of Mexico in the Western District of Louisiana, and
$1.8 million for negligently discharging oil into the Gulf of Mexico in violation of the Clean Water Act after an
explosion on an offshore facility in the Eastern District of Louisiana. Wood Group PSN was also ordered to
pay $700,000 in community service to projects in the areas where the criminal conduct took place.
"The events of November 2012 at West Delta 32 were tragic, and since then federal prosecutors have
worked diligently to investigate and understand the full scope of criminal conduct," said Acting Assistant
Attorney General Wood. "Today's plea agreement demonstrates the Department of Justice's commitment to
the integrity of federal safety programs and accountability for those who falsify federal safety inspection re-
ports. In addition, the plea agreement ensures that Wood Group is held responsible for its wrongful pollution
of the Gulf of Mexico, and it will bring community service projects to benefit the Gulf of Mexico and Gulf
Coast communities."
"Ensuring that public resources are developed in a professional and responsible manner is among the highest
priorities for this department, and the OIG is committed to work with its Federal partners to hold violators
accountable when they choose to ignore their professional and legal responsibilities and place the public and
environment at risk," said Ronald
Gonzales, Special Agent in Charge of
the Department of the Interior
OIG's Energy Investigations Unit
stated, "Developing domestic
sources of energy is of vital im-
portance to our nation. This devel-
opment must be done responsibly
and safely to protect public health
and the environment," said Christo-
pher R. Brooks, Special Agent in
Charge of EPA's criminal enforce-
ment program in Louisiana. "This
case is an example of federal law enforcement partners holding individuals accountable for their illegal con-
duct, arid ensuring that the hard work invested in restoring the Gulf of Mexico is not jeopardized."
According to the factual basis of the company's plea agreement in the false reporting case, from April of
2011 to July of 2014, employees at Wood Group PSN's Cameron, La., office failed to inspect and maintain fa-
cilities they had contracts with on the Outer Continental Shelf's Creole Loop, and also falsely indicated that
the facilities had been properly inspected and maintained according to federal safety and environmental reg-
ulations. The company operators at the Cameron office had trouble keeping up with inspections and mainte-
nance on facilities they serviced. The office did not have sufficient labor and transportation, and the work
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EPA Bulletin— February 2017
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Sentencings
was not always completed on time. The employees, from operators to clerks, then falsified reports to the Bu-
reau of Safety and Environmental Enforcement. The company admitted to 87 violations on offshore
platforms.
Wood Group PSN's Clean Water Act conviction stems from an explosion on Black Elk Energy Offshore Opera-
tions, L.L.C.'s (BEE) offshore oil production facility located at area West Delta 32 in the Gulf of Mexico. Ac-
cording to court documents, BEE had contracted with Wood Group PSN for individuals to man and conduct
production operations at the West Delta 32 facility. Beginning on November 3, 2012 and continuing through
November 16, 2012, construction was being conducted at the West Delta 32 facility. Wood Group PSN sup-
ported the construction by issuing hot work permits for welding.
However, starting on or about Nov. 10, 2012, the Wood Group PSN Person-in-Charge, Christopher Srubar,
stopped issuing hot work permits and conducting all-hands safety meetings, and instead delegated the hot
work permitting to a less experienced operator. On Nov. 16, 2012, Grand Isle Shipyards, Inc. (GIS) construc-
tion superintendent, Curtis Dantin, assigned workers to perform welding in three different areas of the "E"
platform, including sump line piping that had previously contained hydrocarbons but had not been made safe
for hot work, or identified in a permit as an area safe for hot work. The sump line piping led to an oil storage
tank that contained hydrocarbons contaminated with water, also known as the wet oil tank.
After the construction workers had cut and grinded the sump line piping the morning of Nov. 16, they
attempted to weld on the cut piping with an arc welder. At that time, hydrocarbon vapors that had escaped
from the wet oil tank ignited. The ignition caused an explosion setting off a series of additional explosions in
the three oil tanks on the "E" platform. One of the dry oil tanks and the wet oil tank were blown into the Gulf
of Mexico. The other dry oil tank was blown off its base and destroyed the platform crane. Oil spilled into the
Gulf of Mexico causing a sheen on the water. Oil rained down to the lower deck of the platform where work-
ers had been performing other construction activity. The fire and explosions that occurred resulted in the
deaths of construction workers, Avelino Tajonera, Elroy Corporal, and Jerome Malagapo. Other workers were
seriously burned and physically injured.
Wood Group PSN admitted that its employees were negligent in the way they authorized hot work on West
Delta 32, and that a lack of communication between personnel on the platform, including Wood Group PSN's
Person-in-Charge, Christopher Srubar, contributed to the events that caused oil to be discharged into the
Gulf of Mexico in a harmful quantity.
Co-defendants, BEE and GIS face manslaughter charges, and Curtis Dantin, Christopher Srubar, and Don Moss
face criminal violations of the Clean Water Act in the Eastern District of Louisiana before the Honorable
Judge Jane Triche Milazzo, in case no. 15-cr-197 "H." BEE also faces eight felony counts of regulatory viola-
tions under the Outer Continental Shelf Lands Act.
Charges against Don Moss, Christopher Srubar, Curtis Dantin, and GIS under the Outer Continental Shelf
Lands Act that were dismissed by the district court are pending an interlocutory appeal by the government to
the U.S. Fifth Circuit Court of Appeals, case no. 16-30561.
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Sentencings
The U.S. Department of the Interior-Office of Inspector General and the EPA's Criminal Investigation Division
conducted the investigations. Assistant U.S. Attorneys prosecuted the case for the Western District of Louisi-
ana. Assistant U.S. Attorneys and the Department of Justice Senior Trial Attorney prosecuted the case for the
Eastern District of Louisiana.
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Sentencings
Plant Manager for Willapa Bay Oyster Processor Sentenced for Violating Clean Water Act — Knowingly
Submitted Fraudulent Test Data of Fecal Coliform Levels in Wastewater
The manager of an Ocean Park, Washington oyster processing company who falsified important tests of the
plant's wastewater discharge and lied to state regulators about those readings was sentenced on March 3,
2017 in U.S. District Court in Tacoma for a felony violation of the Clean Water Act. Lonny Howard, 56, was
employed as the plant manager of Wiegardt Brothers, Inc. (WBI). Howard admitted that, for 12 years, he fal-
sified data to understate the amount of fecal coliform the plant was discharging into Willapa Bay. Howard
was sentenced to one year of probation.
"Over a dozen years, this defendant consistently falsified readings intended to protect the health and safety
of people using and enjoying Willapa Bay," said U.S. Attorney Annette L. Hayes. "Fecal Coliform contamina-
tion can have particularly serious consequences for children, the elderly, and people with compromised im-
mune systems. The felony conviction in this case is an appropriate sanction for this defendant whose callous
disregard for his legal obligations harmed the environment we Northwesterners hold dear."
According to records filed in the case, Howard was the General Manager of Wiegardt Brothers between 2002
to 2014. During that period, the company was required to perform monthly tests of the wastewater by taking
samples of the wastewater at the point it was discharged into Willapa Bay. Howard admitted that instead of
doing so, he tested diluted water from a source known as "bubbler," causing the tests to understate the
amount of fecal coliform in the wastewater. On some occasions, the level of fecal coliform in the bubbler was
still higher than the permit allowed. In those instances, Howard falsified the data submitted to the state to
make it appear the plant was in compliance. When asked by inspectors whether he was taking tests from the
location specified in the permit, Howard falsely told the inspectors that he was doing so.
On August 22, 2014, the company reported the violations to the Department of Ecology and has been work-
ing with environmental regulators on a remediation plan. Regulators were unable to assess whether the vio-
lations resulted in any environmental harm.
The company and its President pleaded guilty to misdemeanor violations of the Clean Water Act in June
2015. Wiegardt Brothers, Inc. agreed to pay a $100,000 fine, make a $75,000 community service payment,
implement an EPA approved environmental management system to insure future compliance, and publish a
public apology in the Pacific Coast Shellfish Growers Association's quarterly newsletter. Company President
Frederic "Fritz" Weigardt was jointly responsible for payment of the $100,000 criminal fine was required to
complete 75 hours of community service.
Howard is no longer employed in the food industry or other industry with environmental compliance issues.
The case was investigated by EPA's Criminal Investigation Division and was prosecuted by Assistant US Attor-
neys, with assistance from EPA Regional Enforcement Counsel.
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Sentencings
Arizona Man Sentenced to Prison for Trafficking in Pet Products with Counterfeit Labels
On February 6, 2017, an Arizona man was sentenced to serve 37 months in prison for trafficking in pet prod-
ucts with counterfeit labels into the United States.
Allen Smith, 50, of Phoenix, Arizona, was sentenced by U.S. District Judge David Hittner of the Southern Dis-
trict of Texas. In addition to his prison term, Smith was ordered to pay $867,150 in restitution and to forfeit
$42,269 worth of illicit proceeds.
tection Agency (EPA) authorization to be manufactured for and approved for sale in the United States.
The FDA-OCI, HSI and EPA investigated the case. US Attorneys are prosecuting the case.
FRONTLIt
Kills fleas, flea eggs, ticks
& chewing lice
KEEP OUT Of
According to admissions made in connection with his plea,
Smith was responsible for aiding and abetting the trafficking of
over $1 million worth of veterinary products that were not
manufactured for the U.S. market into the United States for
distribution under false labels, including Frontline and Front-
line Plus products manufactured by Merial Pharmaceutical
Company (Merial) and Advantage and K9 Advatix products
manufactured by Bayer. Smith intentionally trafficked in the
products to deceive retail stores and consumers into believing
that the products had received necessary Environmental Pro-
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Plea Agreements
Florida Man Pleads Guilty in Wire Fraud Case Related to Falsified Water Testing in Dale County, Alabama
On February 16, 2017, Darin Lewis, 46, of Crestview, Florida, pleaded guilty to one count of conspiring to
commit wire fraud, the US Attorney's conviction stemmed from his involvement in a scheme to falsify water
samples during the testing of new water lines installed in Dale County, Alabama.
According to court documents, in 2014, the Dale County Water Authority hired a Florida company, Roberson
Excavation, Inc. (Roberson Excavation), to replace water lines in the Marley Mill area of Dale County. Lewis's
co-defendant, Billy Ray Roberson, was the owner and president of Roberson Excavation. Lewis began work-
ing on the project around February of 2015. By that time, Roberson Excavation was three months behind
schedule on the job and paying penalties of $500 for each day that the project went incomplete. At that
time, Roberson instructed his site supervisor, Lewis, to falsify the testing required before the lines went into
operation. Among the tests falsified were the tests used to determine whether harmful bacteria were pre-
sent in the water.
A sentencing hearing will be scheduled in the upcoming months where Lewis will face a maximum sentence
of 5 years' imprisonment. The other defendants charged in the case, Billy Ray Roberson and Roberson Exca-
vation, will proceed to trial on June 5, 2017 in Dothan, Alabama.
This case was investigated by EPA's Criminal Investigations Division and the Office of Inspector General.
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EPA Bulletin— February 2017
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Plea Agreements
Texas Man Pleads Guilty to Poisoning Protected Migratory Birds and Unlawful Use of Pesticide
John Purviance, age 46, of Bowie County, TX pled guilty to killing protected migratory birds and the unlawful
use of pesticides on his property in violation of federal law. Purviance entered pleas of guilty on both misde-
meanor charges at a hearing on March 21, 2017.
According to court documents, the U.S. Fish and Wildlife Service's Office of Law Enforcement was notified by
Texas Parks and Wildlife Department on April 26, 2016 that a private farm near Bowie, TX was suspected of
having corn laced with poison spread over a large area. In days following, wildlife agents documented sus-
pected poisoned bait sites and collected deceased bird carcasses as evidence at the Folse Ranch in DeKalb,
TX. The U. S. Department of Agriculture's Wildlife Services division also removed deceased wild hogs from
the property. Purviance claims he was intending to poison feral hogs on his property by lacing feed corn with
a highly toxic pesticide.
"Using a restricted-use pesticide in a manner inconsistent with its labeling can have disastrous effects on the
environment and wildlife," said Nicholas E. Chavez, Special Agent in Charge for the U.S. Fish and Wildlife Ser-
vice. "The protection of our Nation's wildlife, including migratory birds, is a priority for the U. S. Fish and
Wildlife Service/Office of Law Enforcement (USFWS/OLE).
This investigation is an excellent example of the cooperative investigative efforts between the Texas Parks
and Wildlife Department, Environmental Protection Agency, U. S. Department of Agriculture/Wildlife Ser-
vices, and USFWS/OLE."
Purviance faces up to six months in federal prison, a fine up to $25,000, or both. A sentencing hearing has not
been scheduled yet by the court.
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Plea Agreements
East Bay Chemical Company And Owner Indicted For Illegal Transportation And Smuggling Of Hazardous
Materials
OAKLAND - A Union City man and the corporation he owns were charged with conspiracy to defraud the
United States, smuggling, and multiple violations of the Toxic Substances Control Act and the Hazardous Ma-
terials Transportation Act, announced U.S. Attorney Brian J. Stretch; Environmental Protection Agency Crimi-
nal Investigation Division Special Agent in Charge Jay Green; U.S. Department of Transportation Office of the
Inspector General Regional Special Agent in Charge William Swallow; and U.S. Immigration and Customs En-
forcement's (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin. The indict-
ment alleges that Peiwen Zhou and his company, AK Scientific, conspired to defraud the United States,
smuggled materials into the United States, and illegally transported chemicals within the United States by
mislabeling and improperly packaging hazardous chemicals.
According to the indictment, Zhou, 53, of Palo Alto, was the founder, owner, and chief executive officer of
AK Scientific. Zhou and AK Scientific were in the business of purchasing and then selling research and spe-
cialty chemicals to customers that included universities, research laboratories, and other entities. AK Scien-
tific purchased chemicals from chemical supply companies in, among other places, South Korea, Poland, In-
dia, and New Zealand.
The indictment alleges the defendants defrauded the United States and smuggled hazardous chemicals into
the United States by mislabeling the contents of containers. Further, defendants allegedly transported
chemicals in violation of the Toxic Substances Control Act (TSCA) by failing to complete required import cer-
tifications and by failing to properly label packages containing hazardous materials. In addition, according to
the indictment, the defendants also arranged to transport hazardous materials on several occasions without
labeling the packages as required by the Hazardous Materials Transportation Act (HMTA).
Zhou and AK Scientific are charged with one count of conspiracy to defraud the United States; one count of
smuggling; two counts of violating TSCA; and seven counts of HMTA. For Zhou, if convicted, the maximum
statutory penalties are as follows:
• Conspiracy- 5 years in prison term and a $250,000 fine
• Smuggling- 20 years in prison and a $250,000 fine
• Each count of violating TSCA-1 year in prison term and a $50,000 fine
• Each count of violating HMTA- 5 years in prison term and a $250,000 fine
• For defendant AK Scientific, if convicted, the corporation faces the following maximum statutory penal-
ties:
• Conspiracy- 5 years of probation and a $500,000 fine
• Smuggling- 5 years of probation and a $500,000 fine
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Plea Agreements
• Each count of violating the TSCA- 5 years of probation and a $200,000 fine
• Each count of violating the HMTA- 5 years of probation and a $500,000 fine
Further, additional special assessments may be imposed on either defendant and Zhou may be subject to
additional terms of supervised release. However, any sentence following conviction would be imposed by
the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposi-
tion of a sentence.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the United States
Attorney's office in San Francisco. The prosecution is the result of an investigation by the U.S. Environmental
Protection Agency's Criminal Investigation Division, the U.S. Department of Transportation's Office of Inspec-
tor General, and the U.S. Department of Homeland Security's Homeland Security Investigations.
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EPA Bulletin— February 2017
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Plea Agreements
Man Pleads Guilty to Crime Involving the Renovation of the Former Kossuth County Home and Asbestos
On February 16, 2017, a North Central Iowa man pled guilty to failing to make proper report and notification
during the renovation of the former Kossuth County Home, which contained asbestos. Gary Christianson, 57,
from Algona, Iowa, was convicted of one count of failing to notify and report that he was renovating a build-
ing containing asbestos to the Environmental Protection Agency or Iowa Department of Natural Resources.
At the plea hearing, Christianson admitted he was the operator of a renovation of the former Kossuth County
Home in Algona, Iowa. The building contained asbestos both on pipes and in floor tiles. Christianson admitted
that, from about November 2014 through about January 2015, he failed to notify the EPA and IDNR of his in-
tention to renovate the building as he was required to do.
Asbestos-containing pipes in building
Sentencing before United States District Court Chief Judge
Leonard Strand will be set after a presentence report is pre-
pared. Christianson remains free on bond previously set
pending sentencing. Christianson faces a possible maximum
sentence of two years' imprisonment, a $250,000 fine, $100
in special assessments, and a year of supervised release fol-
lowing any imprisonment.
The case was investigated by the EPA's Criminal Investigation
Division and is being prosecuted by Assistant US Attorneys.
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Indictments/Information
Owner of Lawrence, Massachusetts Auto Shop Indicted in Connection With Illegally Dumping Oil and
Putting Merrimack River at Risk
The owner of a Lawrence auto shop has been indicted in connection with illegally dumping over a thousand
gallons of hazardous waste oil down a drain that could discharge into the Merrimack River.
Andres Pichardo, age 44, of Lawrence, was indicted on March 21, 2017 by an Essex County Grand Jury on
three counts of disposing of hazardous waste in a manner endangering the environment and without a li-
cense from the Massachusetts Department of Environmental Protection (MassDEP).
"People that illegally dump waste oil in a way that could pollute our rivers will be held accountable," said AG
Healey. "We will continue to work with our state and federal partners to go after those who evade important
laws put in place to keep our water clean."
In February 2016, the Attorney General's Office began an investigation after the matter was initially referred
by EPA's Criminal Investigation Division (CID).
"This case was referred to our Environmental Strike force by EPA's Criminal Investigation Division, and it is a
good example of government agencies working together to protect the environment and the public health,"
said MassDEP Commissioner Martin Suuberg. "We will continue our partnerships to identify and appropriate-
ly prosecute significant cases that have an adverse impact on the public interest."
Authorities allege that, in September 2015, rather than pay for proper disposal of his hazardous waste,
Pichardo instructed an employee and a contractor to illegally dump more than 30 55-gallon barrels of used
automotive waste oil down the drain, which ultimately can discharge to the Merrimack River in wet weather
events.
The Massachusetts hazardous waste statute and accompanying regulations require certain licensing and pro-
cedures for the proper disposal of waste oil. It is a felony to improperly dispose of waste oil in a manner that
could endanger the environment.
This case stems from an investigation by EPA's Criminal Investigation Division and the Massachusetts Envi-
ronmental Strike Force. The Strike Force includes prosecutors from the Attorney General's Office, Environ-
mental Police Officers assigned to the AG's Office, and investigators and engineers from Massachusetts DEP
who investigate and prosecute crimes that harm or threaten the state's water, air, or land and pose a signifi-
cant threat to human health.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are
entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
Page 21 EPA Bulletin—February 2017
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Indictments/Information
Former Owner of Environmental Services Company Indicted for Illegally Disposing of Hazardous Waste-
Company had work sites in Georgetown, Winchester and Cynthiana
On February 3, 2017, a federal grand jury in Lexington, Kentucky returned an indictment against a former
central Kentucky businessman on one count of conspiracy and seven counts of environmental law crimes un-
der the Resource Conservation and Recovery Act (RCRA).
The indictment specifically charges Kenneth Gravitt with illegal storage, transportation and disposal of a haz-
ardous waste.
Kenneth Gravitt was the owner and operator of Global Environmental Services (GES), which operated at sites
in Georgetown, Cynthiana, and Winchester. In 2013, GES began recycling Cathode Ray Tubes (CRTs), which
are the vacuum video tubes inside older box televisions and computer monitors. Because CRTs contain large
amounts of lead, their disposal presents a potential environmental hazard and is regulated by RCRA. Lead is
extremely toxic and can cause serious health problems upon exposure, and therefore must be disposed in a
particular way that is safe for the community.
According to the indictment, GES received for recycling many more loads of CRTs than it could process and
disposed of numerous CRTs illegally. Specifically, Gravitt, aided and abetted by others, allegedly transported
the CRTs to a Georgetown landfill that did not have a permit to handle hazardous waste; stored ground-up
CRT glass containing excessive amounts of lead in large, open, outdoor piles; and put thousands of CRTs and
glass in a large hole that had been dug behind the Georgetown facility, all in violation of federal environmen-
tal laws.
Carlton S. Shier IV, Acting United States Attorney for the Eastern District of Kentucky made the announce-
ment.
If Gravitt is convicted, the maximum punishment on each count is 5 years imprisonment and a $250,000 fine.
The investigation was conducted by the United States Environmental Protection Agency, Criminal Investiga-
tion Division.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are
entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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Indictments/Information
Stark County man charged with violating Clean Water Act for dumping wastewater in Tuscarawas River
tributaries
On February 14, 2017, a grand jury returned a four-count indictment charging a North Lawrence man with
violating the Clean Water Act by dumping wastewater into tributaries of the Tuscarawas River, said Carole S.
Rendon, U.S. Attorney for the Northern District of Ohio.
Adam D. Boylen, 45, was indicted on four counts of violating the Clean Water Act by making unpermitted dis-
charges.
"This defendant willingly dumped wastewater into streams, fouling the water and killing aquatic life," Ren-
don said. "He put his convenience ahead of the public's welfare. We remain committed to protecting our en-
vironment, and this defendant will now be held accountable for his actions."
"Protecting our water is critical, both for the health and safety of our citizens and our wildlife," Ohio Attorney
General Mike DeWine said. "We will continue to assist in this case and others like it to protect Ohio."
"Our environmental laws help keep illegal waste out of local waterways and protect clean water and public
health," said John Gauthier, Acting Special Agent in Charge of the U.S. EPA's criminal enforcement program in
Ohio. "The illegal discharge in this case killed a substantial number of fish and caused serious damage to criti-
cal wildlife habitat. Today's indictment is the direct result of the strong working relationship that EPA has
built with our law enforcement partners at the federal, state, and local levels."
Boylen was a driver employed by an Ohio-based trucking company. Boylen's job was to load wastewater gen-
erated from corporate facilities into a tanker truck and to drive the wastewater to a designated facility locat-
ed in Pennsylvania for proper disposal. The wastewater contained surfactants capable of killing vegetation
and fish, according to court documents.
Instead of delivering the wastewater to Pennsylvania, Boylen drove the tanker truck to remote locations in
Tuscarawas County and central-eastern Ohio and emptied the wastewater containing surfactants into waters
of the United States, according to court documents.
Boylen is charged with dumping the wastewater into two different tributaries of the Tuscarawas River, a wet-
land adjacent to the Tuscarawas River, and the Beach City Reservoir, on numerous occasions between April
18 and May 4, 2016.
White foam flowed down tributaries and streams as a result of Boylen's actions. In one instance, the foam
traveled four miles downstream from the location where the tanker truck was emptied. Vegetation was
killed at all the locations. Approximately 709 fish were killed in one of the tributaries, and collectively, ap-
proximately 3,231 minnows, crayfish, frogs, and tadpoles were killed, according to court documents.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sen-
tencing guidelines which depend upon a number of factors unique to each case, including the defendant's
prior criminal record, if any, the defendant's role in the offenses and the unique characteristics of the viola-
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Indictments/Information
tions. In all cases the sentence will not exceed the statutory maximum, and in most cases it will be less than
the maximum.
The case was investigated by the United States and Ohio Environmental Protection Agencies, the Ohio Attor-
ney General's Bureau of Criminal Investigation, the Stark County Sheriff's Offices, the Tuscarawas County
Sheriff's Offices, the Ohio Department of Natural Resources, and the Ohio Department of Rehabilitation and
Correction. Case prosecution is by Assistant U.S. Attorneys.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it
will be the government's burden to prove guilt beyond a reasonable doubt.
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Indictments/Information
Corporation and Three Individuals Charged with Environmental, Conspiracy, and Obstruction Crimes
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on March 7,
2017, a federal grand jury returned an indictment against Grede, LLC, and Grede II, LLC (also known as Grede
Wisconsin Subsidiaries, LLC), the corporate owners and operators of the former Grede Foundry in Berlin, Wis-
consin. Also charged were Peter J. Mark (age: 53) of Ixonia, Wisconsin, the corporate safety and environmen-
tal director; and Steven G. O'Connell (age: 51) and Christy L. McNamee (age: 40), both of Zanesville, Ohio,
who were formerly employed at the now shuttered facility.
The seven-count indictment alleges charges of conspiracy, obstruction of a federal investigation, the making
of false statements, violations of the federal Clean Air Act and negligent endangerment.
According to the indictment, in January of 2012, workers at the foundry were ordered to assist in the refur-
bishment of a heat-treat oven which contained dangerous amounts of chrysotile asbestos. Proper asbestos
abatement procedures were not implemented by the corporation or its managers. Workers were provided
with inadequate safety equipment and were not told that the material they were removing contained asbes-
tos. This contaminated material was then hauled away to a landfill by unsuspecting trash collectors.
The indictment further alleges that Mark, O'Connell, McNamee, and the corporate defendants conspired to
obstruct state and federal investigators during subsequent inquiries into the presence of asbestos during the
refurbishment of the oven.
If convicted of these offenses, Mark, O'Connell, and McNamee face maximum penalties ranging from 11 to
41 years imprisonment and hundreds of thousands of dollars in fines. The corporate defendants face millions
of dollars in criminal penalties.
This case was investigated by the U.S. Environmental Protection Agency's Criminal Investigation Division, the
U.S. Department of Labor's Office of Inspector General, and the Wisconsin Department of Natural Resources,
Warden's Service.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are
entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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Indictments/Information
Kansas City Area Laboratory Owner Charged for Illegally Storing Hazardous Waste and Obstructing Environ-
mental Protection Agency — Lab Used Radioactive Material and Solvents
On March 16, 2017, Ahmed el-Sherif, the owner/operator and radiation safety officer for Beta Chem Labora-
tory in Lenexa, Kansas, was charged with illegally storing hazardous waste and obstructing an agency pro-
ceeding, announced Acting Assistant Attorney General Jeff Wood for the Justice Department's Environment
and Natural Resources Division, U.S. Attorney Tom Beall for the District of Kansas, and Jessica Taylor, Director
of the Criminal Investigation Division of the U.S. Environmental Protection Agency (EPA).
According to allegations contained in the two-count indictment:
El-Sherif, 61, a chemist, started Beta Chem in the mid-1990s, which he owned and operated. Beta Chem used
radioactive Carbon-14 and solvents in the operation, under license by the Kansas Department of Health and
Environment (KDHE). KDHE has assumed certain regulatory authority from the U.S. Nuclear Regulatory Com-
mission under the Atomic Energy Act. In September 2005, KDHE performed an inspection of Beta Chem and
discovered extensive radioactive contamination in the laboratory, and the next day issued an Emergency Or-
der of Suspension of License. U.S. EPA conducted a hazardous waste inspection the same month, and subse-
quently notified el-Sherif of hazardous waste violations under the Resource Conservation and Recovery Act
(RCRA). During the ensuing years, KDHE communicated with el-Sherif about the radioactive contamination at
Beta Chem. On October 4, 2013, after issuing an Emergency Order to Seize and Secure Radioactive Materials,
KDHE took control of Beta Chem and secured the facility.
The Criminal Investigation Division of EPA executed a search warrant at Beta Chem on January 22, 2014,
where agents discovered numerous containers containing hazardous wastes contaminated with radiation.
EPA's Superfund program subsequently engaged in a removal action and disposed of the hazardous waste at
a cost of over $760,000. In the process of assessing el-Sherif s ability to pay for cleanup costs, EPA requested
financial information. El-Sherif submitted three Beta Chem tax returns to EPA that he falsely claimed had
been filed and that contained fictitious and misleading information.
An indictment is an allegation based upon a grand jury finding of probable cause. A defendant is presumed
innocent unless and until convicted. If convicted of both charges, el-Sherif faces up to ten years in prison, and
also could be fined.
Acting Assistant Attorney General Wood and U.S. Attorney Beall thanked the U.S. EPA for its work in this in-
vestigation. This case is being prosecuted by the Environmental Crimes Section of the Department of Justice
and the U.S. Attorney's Office.
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