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Environmental Crimes
Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
This bulletin summarizes publicized investigative activity and adjudicated cases
conducted by OCEFT Criminal investigation Division special agents, forensic specialists,
and legal support staff. To subscribe to this monthly bulletin you may sign up for
email alerts on our publications page.
October—November, 2017
In This Edition:
Guido A. Cortes-Rodriguez—Region 1
Sean P. Doctor—Region 2
Terminix—Region 2
Premier Aviation Overhaul Center—Region 2
David C. Weiss—Region 3
Philip Michael Huddleston —Region 4
Gregory Schnabel—Region 5
Kenneth Johns—Region 9
Jason A. Halek, Nathan R. Garber—Region 6
James Findlay—Region 10
David Joseph Wirsing—Region 9
oEPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-15-007

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Defendant Summary
Region
Defendants
Case Type/Status
Guido A. Cortes-Rodriguez
Sentencing
Sean P. Doctor
Sentencing
Terminix
Sentencing
Premier Aviation Overhaul Center
Plea Agreement
Lance A. Charen
Sentencing
Philip Michael Huddleston
John Thomas Hatfield
Plea Agreement
Gregory Schnabel
Plea Agreement
Kenneth Johns
Indictment
Jason A. Halek
Nathan R. Garber
Sentencing
10
James Findlay
Sentencing
David Joseph Wirsing
Sentencing
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Sentencings
PA Man Sentenced For Environmental Crimes in Wilmington
Lance A. Charen, a resident of Blue Bell, Pennsylvania, was sentenced on October 12, 2017 to one year and
one day incarceration for environmental crimes.
According to court documents and statements made in court, from September 2010, through January 2013,
Charen was the branch manager of an oil recycling facility, located at 505 South Market Street in Wilmington,
Delaware. International Petroleum Corporation of America ("IPC") owned and operated the facility, which
processed used oil and hydrocarbon-containing waste water and then sold the reprocessed petroleum to var-
ious 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 wa-
ter portion of the facility prior to discharge 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 discharge 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 to the City every six months.
On June 22, 2017, Charen pled guilty to tamper-
ing with monitoring methods associated with
IPC's monthly samples. More specifically,
Charen admitted that on sampling days he
caused the facility to significantly reduce the
volume of wastewater treated, because slowing
the treatment process rendered it more effec-
tive. Additionally, Charen pled guilty to vio-
lating the Resource Recovery and Conservation
Act ("RCRA") by transporting hazardous waste
without a hazardous waste manifest. In June
and July 2012, Charen caused to be transported
for disposal in South Carolina approximately 27
truck-loads or 500,00 pounds of sludge ("tank
bottoms") which had been removed from the
facility's storage tanks. The tank bottoms contained concentrations of benzene, barium, chromium, cadmi-
um, lead, tetrachloroethene (also known as "PCE"), and trichloroethene (also known as "TCE"), which each
served to classify the material as RCRA regulated hazardous waste.
IPC pled guilty to similar charges and was sentenced by Judge Sleet, on February 2, 1017, to a $1,300,000 fine
and $2,200,000 in restitution to the City of Wilmington.
"Industrial wastewater can pose serious threats to public health and the environment, so it's imperative that
managers of companies, especially ones providing environmental services, honestly treat and dispose of it
properly and sample and report pollutant concentrations honestly," said Acting U.S. Attorney
Weiss. "Likewise, company managers must handle hazardous waste properly to ensure its proper treatment
IPC facility in Delaware
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Sentencings
and disposal. The Department of Justice and EPA are committed to protecting human health and the envi-
ronment for all Americans through strong enforcement of environmental laws. This conviction and sentence
ensures that the defendant, the facility's highest on-site manager, is held accountable.
"By falsifying sampling results and hiding the fact that he was shipping ignitable and hazardous waste, the
defendant put public safety and the health of the environment at risk," said Jennifer Lynn, Assistant Special
Agent in Charge of EPA's criminal enforcement program in Delaware. "This case demonstrates that EPA and
its law enforcement partners are serious about protecting the health of our communities."
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.
The case was prosecuted by the Special Assistant U.S. Attorney, EPA Region 3, and DOJ Assistant U.S. Attor-
ney.
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Sentencings
Environmental Training Instructor Who Falsely Certified Asbestos Abatement Courses is
Sentenced
Guido A. Cortes-Rodriguez, of West Haven, was sentenced on November 15, 2017, to two years of probation,
the first six months of which Cortes must serve in home confinement, for falsely certifying the completion of
asbestos abatement courses. Cortes was also ordered to perform 160 hours of community service while he
is on probation.
According to court documents and statements made in court, Cortes was a training instructor at North Star
Center for Human Development ("North Star"), an organization that offered a variety of training courses and
certification to individuals working with lead paint and asbestos. Cortes was the training manager and a pri-
mary instructor for those courses.
North Star's lead and asbestos training courses were subject to regulation under the training provider ac-
creditation requirements of the federal Toxic Substances Control Act (TSCA). TSCA allowed states to obtain
U.S. EPA authorization to administer and enforce the standards, regulations and other requirements of the
TSCA's lead and asbestos programs, including the approval of training courses. The State of Connecticut re-
ceived such authorization for asbestos and lead programs. Individuals in Connecticut who perform or super-
vise asbestos abatement activities must be certified by the Connecticut Department of Public Health (CT
DPH). To obtain certification, an individual must successfully complete an approved 40-hour asbestos abate-
ment supervisor initial training course. North Star applied for and received approval from CT DPH to offer a
wide range of lead and asbestos training courses, including asbestos abatement supervisor initial and re-
fresher courses.
On December 16, 2015, Cortes sent notice to the CT DPH that an asbestos abatement supervisor initial train-
ing course would be conducted at North Star's facility in Hartford from December 27, 2015 to January 2,
2016. Further, he advised that a 32-hour lead abatement worker initial course would be conducted from
January 3 to January 6, 2016, at the same location. Cortes was identified as the training manager and prima-
ry course instructor for both courses.
An undercover FBI agent attempted to attend the second course under a fictitious identity, seeking a lead
abatement worker initial course completion certificate. The agent skipped the first three days of the course,
and attempted to attend on January 6, 2016. Upon arrival at the facility, the agent learned that no course
was being conducted at North Star that day, and further, that no classes had been conducted for weeks.
The agent called the instructor, Cortes, who agreed to meet him at the North Star facility the following
day. When the agent met with Cortes on January 7, 2016, the agent indicated he was interested in trying to
get work as soon as possible. Cortes provided him with a list of items he would need from the agent, includ-
ing his name, mailing address, Social Security number, passport-type photos and $1,260.
Later that day, the agent returned to Cortes' office with the listed items and Cortes met with him in a cubi-
cle. Cortes asked various biographical questions of the agent, filled out paperwork, and provided the agent
with three certificates issued to A.R.: A 40-Hour Asbestos Abatement Supervisor Initial Certification, a 32-
Hour Lead Abatement Worker Initial Certification, and an OSHA 10-Hour Construction Safety Training
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Sentencings
Course. Cortes accepted $1,260 cash in payment from the agent. The agent attended no classes conducted
by Cortes at North Star, received no training from Cortes in these subject areas, and did not take any exami-
nations. The false certificates issued by Cortes to the agent were signed by Cortes, bore an individual certifi-
cate number, and otherwise appeared to meet the requirements of Connecticut's approved lead and asbes-
tos accreditation programs, and therefore, the federal accreditation requirements. Subsequent investigation
determined that Cortes provided fraudulent training certificates on multiple occasions.
"Asbestos and lead removal training providers are entrusted with keeping safe the supervisors, workers and
the public that hire them," said Tyler C. Amon, Special Agent in Charge of EPA's Criminal Investigation Divi-
sion in New England. "Trainers who cheat and provide false certificates will continue to be a focus for EPA
enforcement since they pose too great a risk to the public health."
On December 21, 2016, Cortes pleaded guilty to one count of making a false statement to the federal gov-
ernment.
This case was investigated by EPA's Criminal Investigation Division and Office of Inspector General, FBI, and
Homeland Security Investigations. The case was prosecuted by DOJ.
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Sentencings
Buffalo Man Sentenced For Violations Of Clean Air Act Involving Asbestos
Sean P. Doctor, of Buffalo, NY, who was convicted of making a false statement under the Clean Air Act, was
sentenced on November 1, 2017 to one year probation, and fined $2,000.
The Assistant U.S. Attorney who handled the case stated that CEM, an environmental consulting company
located at 1815 Love Road on Grand Island, provided consulting services to Doctor and his asbestos abate-
ment company, S.D. Specialty Services, LLC. Pursuant to federal regulations, all owners or operators of an as-
bestos abatement project regulated under the Clean Air Act, must maintain a waste shipment manifest to
include the name of the owner/operator; the name of the generator; and the date the asbestos was trans-
ported. The information enables the Environmental Protection Agency, which enforces the Clean Air Act and
associated regulations, properly and timely to investigate suspected violations of the Clean Air Act.
From December 2009, to January 2010, employ-
ees of S.D. Specialty performed asbestos abate-
ment work at the Roosevelt Park Shelter in Buffa-
lo, which was subject to regulations of the Clean
Air Act. During the project, S.D. Specialty employ-
ees removed asbestos from the Roosevelt Park
Shelter and transported the material to a waste
container at CEM on Grand Island.
On March 11, 2010, Doctor and CEM executed an
asbestos waste manifest which falsely indicated that asbestos had been transported to CEM from the Roose-
velt Park Shelter on that date. In truth and in fact, such asbestos had been transported to, and stored at, the
Grand Island location prior to March 11, 2010. As such false statement was included in the shipping manifest
created when a local waste disposal company retrieved the waste container at CEM on March 11, 2010, such
false statement became part of a record required to be maintained under the Clean Air Act.
In addition, on April 28, 2011, an inspection of the Roosevelt Park Shelter revealed asbestos was improperly
left behind by employees of S.D. Specialty. CEM owner Raj Chopra and the company have both been convict-
ed and are awaiting sentencing.
The investigation was conducted by EPA's Criminal Investigation Division, the New York State Department of
Environmental Conservation Police, BECI. Additional assistance was provided by the New York State Depart-
ment of Labor, Asbestos Control Bureau.
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Sentencings
Terminix Companies Sentenced for Applying Restricted-Use Pesticide to Residences in the
U.S. Virgin Islands
Terminix International Company LP (Terminix LP) and U.S. Virgin Islands operation Terminix International
USVI LLC (Terminix, USVI) were sentenced on November 20, 2017 for violations of the Federal Insecticide,
Fungicide, and Rodenticide Act in the U.S. Virgin Islands, announced the Department of Justice and the Envi-
ronmental Protection Agency.
The Virgin Islands pest control company illegally applied fumigants containing methyl bromide in multiple
residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John where a
family of four fell seriously ill in March 2015 after the unit below them was fumigated. According to the plea
recommendation, Terminix LP and Terminix, USVI are to pay a total of $9.2 million in criminal fines, commu-
nity service, and restitution payments. Under the agreed recommendation, Terminix, USVI will pay $4 million
in fines and $1 million in restitution to the EPA for response and clean-up costs at the St. John resort. Ter-
minix LP will pay a fine of $4 million and will perform community service related to training commercial pesti-
cide applicators in fumigation
practices and a separate health
services training program.
"The sentences in this case re-
flect the serious nature of the
defendants' illegal actions and
the unacceptable consequenc-
es of those actions," said EPA
Administrator Scott Pruitt. "This
case should serve as a stark re-
minder that pesticides must be
applied as intended and that
those who ignore laws that pro-
tect public health will be held
accountable by EPA and our
law enforcement partners."
"The tragic incident at issue in this case shows the extreme danger posed by the improper use of toxic pesti-
cides," said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department's Environment and
Natural Resources Division. "Businesses using these products must take appropriate cautions to safeguard
the public, or else the consequences can be devastating. We trust that the result in this case shows how im-
perative it is that users of these products take the time to review, understand, and employ appropriate tech-
niques and uses."
"This case demonstrates how critical it is to comply with environmental laws and regulations," said Acting
United States Attorney Joycelyn Hewlett for the District of the Virgin Islands. "An entire family suffered hor-
rendous and life-altering injuries. We will continue to aggressively enforce environmental laws to help pre-
vent something like this from ever happening again."
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Sentencings
In 1984, the EPA banned the indoor use of methyl bromide products. The few remaining uses are severely
restricted and largely limited to commodity applications for quarantine and pre-shipment purposes. Pesti-
cides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they
may only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious
and include central nervous system and respiratory system damage. Pesticides can be very toxic and it is criti-
cally important that they be used only as approved by EPA.
According to the information filed in federal court in the U.S. District Court of the Virgin Islands, the defend-
ants knowingly applied restricted-use fumigants at the Sirenusa resort in St. John for the purpose of extermi-
nating household pests on or about October 20, 2014, and on or about March 18, 2015. The companies were
also charged with applying the restricted-use pesticide in 12 residential units in St. Croix and one additional
unit in St. Thomas between September 2012 and February 2015.
According to the factual basis of the plea agreement, Terminix, USVI provided pest control services in the Vir-
gin Islands including fumigation treatments for Powder Post Beetles, a common problem in the islands. These
fumigation treatments were referred to as "tape and seal" jobs, meaning that the affected area was to be
sealed off from the rest of the structure with plastic sheeting and tape prior to the introduction of the fumi-
gant. Customers were generally told that after a treatment, persons could not enter the building for a two- to
three-day period.
On or about March 18, 2015, two employees of Terminix, USVI, performed a fumigation pesticide treatment
at the lower rental unit of Building J at Sirenusa in St. John. The upper unit in Building J was occupied by a
Delaware family of four. Via various means, methyl bromide from the lower unit migrated to the upper unit
of Building J, causing serious injury to and hospitalization of the entire family.
EPA regional staff responded immediately to the incident in St. John, securing the scene, performing testing,
and addressing the contamination. Within days, the EPA sent out a pesticide use warning to pesticides appli-
cators in Puerto Rico and the U.S. Virgin Islands, followed by a broader pesticide notice to regulators in all
states, the British Virgin Islands, and to other Caribbean and Latin American countries.
After the government began its investigation, Terminix LP voluntarily ceased its use of methyl bromide in the
U.S. and in U.S. territories. The government has notified the district court that the defendants have made full
restitution to the Esmond family. The family is satisfied with the criminal resolution and has asked that their
privacy be respected.
The case was investigated by EPA's Criminal Investigation Division, working cooperatively with the Virgins Is-
lands government and the Agency for Toxic Substances and Disease Registry. The case was prosecuted by
DOJ and EPA attorneys.
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Sentencings
Saltwater Disposal Well Operators Sentenced on Multiple Felony Charges in Connection
With Operation of Well
Two saltwater disposal well operators were sentenced on November 27, 2017 in federal court in Bismarck,
North Dakota, on felony charges stemming from the operation of a saltwater disposal well near Dickinson, in
Stark County, North Dakota, the Justice Department announced.
Jason A. Halek, 44, of Southlake, Texas, was sentenced to three years supervised release and ordered to pay
a fine of $50,000, Halek will also be placed in a halfway house for up to one year as a result of today's sen-
tencing, Halek previously pleaded guilty, on April 12, 2017, to three counts of violating the Safe Drinking Wa-
ter Act.
Nathan R. Garber, 48, of Kalispell, Montana, was sentenced to three years supervised release. Garber previ-
ously pleaded guilty, on September 26, 2014, to one count of conspiracy to violate the Safe Drinking Water
Act and defraud the United States. He also pleaded guilty to five counts of violating the Safe Drinking Water
Act, two counts of making false statements, two counts of falsification of records, and one count of conceal-
ment or cover up of a tangible object.
Restitution for both defendants will be addressed at a future
hearing.
"By illegally discharging contaminated wastewater, the defend-
ants threatened the safety of drinking water and public health
in North Dakota," said Acting Assistant Administrator Larry
Starfield for EPA's Office for Enforcement and Compliance As-
surance. "EPA and its law enforcement partners are committed
to holding accountable those who break laws that protect
clean water and that ensure natural resources are developed in
a safe and responsible manner."
"This case is a great example of state and federal authorities working shoulder to shoulder to ensure that our
precious natural resources in North Dakota and the Citizens of North Dakota are protected," said U.S. Attor-
ney Christopher C. Myers for the District of North Dakota. "Those individuals who seek to exploit and dam-
age our natural resources to increase their own personal wealth will be held accountable."
The saltwater disposal well, named the Halek 5-22, received brine and other wastes commonly referred to as
"saltwater" from oil and gas operations. In the oil and gas context, "saltwater" covers a wide array of drilling
waste fluids, including waste workover, completion, stimulation and pigging fluids, as well as enhanced re-
covery waters. Underground injection into a saltwater disposal well is prohibited without a permit, which
imposes requirements on the well's operations to help ensure that the saltwater does not impact under-
ground sources of drinking water.
According to an agreed upon factual statement previously filed in court, Halek admitted to injecting saltwa-
ter into the well without first having the state of North Dakota witness a test of the well's integrity. Such
tests protect groundwater by focusing on whether there are any significant leaks or fluid movement in the
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Sentencings
well. Although the well's permit required that fluids be injected through the tubing, Halek also admitted to
injecting fluids down the "annulus" or "backside" of the well thereby violating the permit. Finally, Halek also
admitted to failing to provide written notice to the state of the date of first injection into the well.
According to an agreed upon factual statement previously filed in court, Garber admitted to conspiring with
others in a number of coordinated and illegal acts. For instance, Garber injected saltwater into the well with-
out first having the state of North Dakota witness a test of the well's integrity, causing a regulator to deter-
mine that there was no assurance as to the integrity of the well and that "the fluid could be going any-
where." Garber also violated a February 2012 order from the state to stop injecting until a well integrity test
was done. When questioned by the state about these injections, Garber made false statements by denying
that these injections occurred. After the well failed a pressure test in February 2012 Garber continued to in-
ject saltwater even though he knew that the well did not have integrity and thus posed an increased risk of
contaminating groundwater.
Further, Garber moved a device called a "packer" up the wellbore in violation of the well's permit, without
first getting approval from the state. A properly placed packer is an essential device to maintaining integrity
of the well and ensuring wastewater does not escape into surrounding soil and groundwater. Garber then
gave false information to a state inspector regarding the depth of the packer. Despite illegally moving the
packer, Garber continued to inject saltwater into the well until about March 2012, when a state employee
shut the well in.
The case was investigated by the U.S. Environmental Protection Agency's Criminal Investigation Division. Sig-
nificant cooperation was provided by the State of North Dakota and the North Dakota Industrial Commission
(NDIC). The case is being prosecuted by the United States Attorney's Office for the District of North Dakota
and the Environmental Crimes Section of the Justice Department's Environment and Natural Resources Divi-
sion.
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Sentencings
Boise Man Sentenced for Clean Water Act Violation
James Findlay of Boise, Idaho, was sentenced on November 21, 2017 to one year of probation for negligent
discharge of waste in violation of the Clean Water Act.
On August 28, 2017, Findlay pleaded guilty to unlawfully
discharging waste into the Boise sewage system between
April 2012 and October 2014. According to Find lay's plea
agreement, he operated an entity called Sawtooth Fusion,
LLC, which was based out of his rental apartment. Findlay
obtained and stored quantities of depleted uranium and
uranium powder. He had obtained some large chunks of
depleted uranium from an aircraft salvage company. In his
apartment, Findlay also chemically extracted uranium from
various items he had acquired. He did this by soaking the
rn. ...	i	items in muriatic acid. At the end of the process, he dis-
EPA mobile command post at apartment
charged the materials and acid mixture into the sink in his
apartment, which was connected to the Boise Public Works
sewage system. Due to their low pH and corrosive properties, the discharged materials violated Boise's sew-
age system's EPA-approved requirements and, as a result, the Clean Water Act. Findlay's actions required a
significant governmental response to address any potential public safety concerns. No widespread danger to
the community was discovered.
"This case shows that EPA, along with our law enforcement partners, will vigorously pursue criminal behavior
in order to protect our communities," said Jeanne Proctor, Special Agent in Charge of EPA's Criminal Investi-
gation Division in the Pacific Northwest.
The case was investigated by the Environmental Protection Agency, the Department of Transportation, the
Nuclear Regulatory Commission, the United States Postal Inspection Service, and the Federal Bureau of Inves-
tigation. Boise Fire Department and Boise Police were the first responders to the apartment complex where
Findlay's activities were discovered.
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Sentencings
Former Santa Clara Waste WaterCompany Transportation ManagerSentenced
David Joseph Wirsing, of Ventura, was sentenced on October 31,2017, to serve seven months in jail and
placed on forma! probation for three years for his role in causing a 2014 explosion at Santa Clara Waste
Water Company (SCWWC). Wirsing was the former transportation manager for SCWWC. The case was
jointly prosecuted by the Ventura County District Attorney's Office and the California Attorney General's
Office.
storage yard before inspections occurred.
In addition to the jail sentence, Wirsing was ordered to pay victim restitution in an amount to be deter-
mined by the Court. Under the terms of his formal grant of probation, Wirsing is prohibited from em-
ployment in any capacity involving the transportation of hazardouswaste.
On November 18, 2014, an explosion occurred at
the SCWWC facility located at 815 Mission Rock
Road in Santa Paula. Numerous employees as well
as first responders were injured either by the initial
explosion or by inhaling a toxic cloud of chlorine gas
generated by the illegal disposal of hazardous chem-
icals that were present on site, in July 2014, Wirsing
and other SCWWC employees negotiated a lease for
an off-site storage yard located near Palm Avenue in
Santa Paula. Wirsing was involved in a criminal con-
spiracy to impede inspections by Ventura County
Environmental Health officialsthrough arranging for
the hazardous chemicals to be moved to the off-site
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Plea Agreements
Owner and Employee of Metal Plating Government Contractor Plead Guilty to
Hazardous Waste Crimes—
Defendants Illegally Stored Hazardous Wastes and Falsified Labels to Deceive
Environmental Inspectors
Phillip Michael Huddleston pleaded guilty on October 17, 2017, to violating the federal Resource
Conservation and Recovery Act ("RCRA") by illegally storing hazardous waste without a permit at Protech
Metal Finishing, LLC, a metal plating facility he owned and operated in Vonore, Tennessee.
John Thomas Hatfield, Protech's production manager, pleaded guilty on October 2, 2017, to being an
accessory after-the-fact to Protech's illegal storage of hazardous waste. In order to hinder an investigation of
Protech's compliance with the RCRA, Hatfield represented that containers of hazardous waste were
accurately labeled when he knew that they were not.
"These guilty pleas are the result of notable efforts undertaken by multiple law enforcement agencies to
enforce provisions in government contracts and the RCRA that protect human health and the environment,"
said Acting Assistant Attorney General Jeffrey H. Wood. "In this case, what was at stake was the health and
safety of Protech employees and the community of Vonore, Tennessee."
When congress passed RCRA, it determined that the disposal of, and inadequate controls over hazardous
waste "will result in substantial risks to human health and the environment." To that end, RCRA imposes
"cradle-to-grave" tracking, handling, and reporting controls to ensure that companies like Protech properly
manage the generation, storage, transport, and disposal of hazardous wastes. The maximum penalty for
each felony RCRA count is five years in prison and a fine of $250,000. The maximum penalty for this
accessory-after-the-fact count is one year in prison and a fine of $25,000.
Defendants Hatfield and Huddleston are scheduled to be sentenced by Senior District Court Judge Leon
Jordan on January 10 and January 8, 2018, respectively.
The prosecution is the result of an investigation by the IRS, EPA's Criminal Investigation Division, TVA-OIG,
the Department of Defense, and the Department of Energy. This case is being prosecuted by DOJ.
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Plea Agreements
Premier Aviation Pleads Guilty to Environmental Crime
Premier Aviation Overhaul Center, an airplane maintenance and painting company with a facility in Rome,
New York, pled guilty on November 1, 2017, to omitting material information regarding hazardous waste on a
trash compactor label, and was sentenced to pay a fine of $40,000,
Premier Aviation admitted that in February 2014, one or more of its employees placed large sheets of plastic
containing hazardous chromium waste into a large trash compactor without updating the labels on the trash
compactor to disclose the presence of hazardous waste inside. The chromium waste was generated when
Premier Aviation stripped paint from older airplanes, and it remained stored in the trash compactor - which
was not an appropriate means of disposal for the hazardous waste - for approximately two weeks prior to
being seized by law enforcement. Subsequent tests re-
vealed that the levels of chromium on the plastic sheets in
the trash compactor were approximately 23 times higher
than the legal limit. Premier Aviation admitted that it failed
to report that one or more of its employees had stored and
maintained chromium illegally in the trash compactor.
Premier Aviation pled guilty to being an accessory after the
fact to this environmental crime.
Premier Aviation was sentenced to pay a $40,000 fine. In its
plea agreement the company also agreed to provide the
EPA with quarterly statistics specifying the hazardous waste
generated, stored, and disposed at its facility, to provide
specific waste and emergency response training to all of its
employees who handle paint, paint stripping processes, or
any other hazardous waste materials, and to abide by a Hazardous Waste Reduction Plan, which was drafted
by Premier Aviation and approved by EPA and DEC prior to the plea hearing. In addition, Premier Aviation
agreed to allow EPA-CID and DEC to inspect its facility in Rome, and its compliance with the terms of the plea
agreement and with all applicable laws and regulations, at any time, and without notice, until September 30,
2018.
This case was investigated by EPA's Criminal Investigation Division and DEC, and prosecuted by DOJ.
The PAOC leased trash compactor
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Plea Agreements
Renewable Fuel Trader Pleads Guilty to Conspiracy
The owner of a company that buys and sells renewable fuel and fuel credits pleaded guilty on October 23,
2017 in U.S. District Court for the Southern District of Ohio to conspiracy for his role in a scheme that
generated over $47 million in fraudulent EPA renewable fuels credits, and over $12 million in fraudulent tax
credits connected to the purported production of renewable fuel.
According to his plea, Schnabel, owner of GRC Fuels of Oneonta, New York, engaged in a scheme with other
co-conspirators to fraudulently claim EPA renewable fuels credits (also known as "RIN" credits) and tax
credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and
on fuel that was exported or otherwise used contrary to EPA and IRS regulations.
Schnabel bought and sold fuel from several individuals who have already pleaded guilty for their roles in the
scheme, including:
•	Fed Witmer and Gary Jury, formerly of Triton Energy, who pleaded guilty in the Northern District of
Indiana to conspiracy, fraud, and false statements;
•	Malek Jalal, formerly of Unity Fuels, who pleaded guilty in the Southern District of Ohio to conspiracy and
obstruction of justice; and
•	Dean Daniels, William Bradley, Ricky Smith, and Brenda Daniels, of New Energy Fuels and Chieftain
Biofuels, who pleaded guilty in the Southern District of Ohio to conspiracy.
"The defendant helped orchestrate a massive scheme to defraud the
U.S. government, American taxpayers and his company's
competitors," said EPA Administrator Scott Pruitt. "This case shows
that EPA and its law enforcement partners are serious about ensuring
a level playing field for businesses that follow the law and punishing
those who break the rules in the name of personal gain."
"The Department of Justice vigorously prosecutes those who defraud
the federal government through unlawful RFS schemes like the one at
issue in this case," said Acting Assistant Attorney General Wood. "We
applaud the work of the DOJ and EPA law enforcement team that
sought and obtained justice in this case."
"This case is another example that environmental programs are not
immune from fraud," U.S. Attorney Glassman said. "We will continue
to catch and hold accountable those who attempt to defraud
"Today's charges send a strong message that there are serious consequences for activity that defrauds the
economy and taxpayers," said Special Agent in Charge Abbott. "I commend the excellent cooperation
between the prosecutors, agents and other investigators who worked tirelessly to uncover this fraudulent
These tax credits
were created in
support of the
production of various re-
newable fuels and fuel mix-
tures, they were not creat-
ed to be a slush fund for
thieves and fraudsters.
- SAC Korner
government programs of any sort."
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Plea Agreements
scheme and expose the perpetrators who were manipulating the system for their own gains."
"Gregory Schnabel pleaded guilty to participating in a conspiracy relative to a massive fraudulent fuel tax
credit scheme for which he has agreed to pay over $13 million in restitution to the IRS," said Special Agent in
Charge Korner. "These tax credits were created in support of the production of various renewable fuels and
fuel mixtures, they were not created to be a slush fund for thieves and fraudsters."
This case is being prosecuted by a DOJ litigation team and is the result of an investigation by the IRS, EPA's
Criminal Investigation Division, and the FBI.
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Indictments/Information
Texas Man Charged with Conspiracy to Obstruct Justice and Making False Documents, and
False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of Mexico
Kenneth Johns, age 45, of Rosharon, Texas, was charged on October 12, 2017, in a three-count indictment in
relation to the veracity of blowout preventer testing on an offshore oil and gas platform located at Ship Shoal
225 positioned on a federal mineral lease in the Gulf of Mexico. Specifically, Johns was charged with one
count of conspiracy to obstruct justice and make false documents, and two counts of making false state-
ments to agencies or departments of the United States.
According to court documents, on or about November 27, 2012, production and well workover operations
were being conducted on the platform and the blowout preventer system had to be tested. A blowout pre-
venter system is designed to ensure well control and prevent potential release of oil and gas and possible loss
of well control.
On or about November 28, 2012, Johns and another worker created a false blowout preventer test. The next
day when Bureau of Safety and Environmental Enforcement (BSEE) inspectors conducted a routine compli-
ance inspection of the platform, the fabricated blowout preventer pressure test chart was presented to the
BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the
platform to be in non-compliance for failing to properly test the blowout preventer system. Johns signed the
fabricated pressure chart and a schematic of the testing sequence as if he had actually been involved in the
BOP testing.
During subsequent investigation of the veracity of the blowout preventer test by the Department of Interi-
or, Johns lied and told investigators the BOP chart with his signature was pre-signed and that he had been
testing a pump when he made the chart.
If convicted, Johns faces a maximum term of imprisonment of 5 years per count and/or a maximum fine of
$250,000 per count.
The Acting U.S. Attorney praised the work of the Department of Interior-Office of Inspector General (Energy
Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environ-
mental Enforcement and the Environmental Protection Agency's Criminal Investigation Division in investi-
gating this matter. DOJ's Assistant United States Attorney, National Security Unit is in charge of the prosecu-
tion.
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