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 byOCEFT Criminal Investigation
Division special agents, forensic specialists, and legal support staff.
April 2015
In This Edition:
• Mann Distribution, LLC — Region 1
• Clyde Eldridge — Region 1
• Trans Energy, Inc. — Region 3
• Daryl Fischer, Russell Taylor — Region 4
• William "Billy" Franklin Johnston, Tap Root Dairy, LLC — Region 4
• Joseph Furando, Caravan Trading Company, CIMA Green — Region 5
• Chad Ducey, Chris Ducey, Craig Ducey — Region 5
• Randy Jones — Regions
• Southern California Plating Company, Paul Hummell — Region 9
• David Arreola — Region 9
• William Cayo, Sr. — Region 10
Defendant Summary
Sentencing
Plea Agreements
&EPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-15-004
-------
Defendant Summary
Region
Defendants
Case Type/Status
Region 1
Mann Distribution. LLC
CAA/Failure to develop and implement risk manage-
ment plan
Region 1
Clvde Eldridge
FIFRA/Making false statement to federal agents
Region 3
Trans Energy. Inc.
CWA/Multiple violations including failure to properly
train and supervise employees and dumping pollu-
tants into waterways without a permit
Region 4
Darvl Fischer. Russell Tavlor
FIFRA/lmproper use of pesticide
Region 4
William "Billv" Franklin Johnston,
Tao Root Dairv. LLC
CWA/lllegal discharge of cow feces into river
® * ®
Page 2
EPA Bulletin-April 2015
-------
Defendant Summary
Region
Defendants
Case Type/Status
Region 5
Joseph Furando. Caravan Trading
Company. CIMA Green
Energy Independence and Security Act/Fraudulent
selling of biodiesel incentives
Region 5
Chad Ducev. Chris Ducev. Craig
Ducev
Energy Independence and Security Act/Fraudulent
selling of biodiesel incentives, conspiracy, false claims
against the Internal Revenue Service, wire fraud and
lying to the EPA and the IRS.
Region 5
Randv Jones
Pipeline Safety Act/Knowingly failing to conduct re-
quired safety tests and submitting the false data to
the Pipeline and Hazardous Material Safety Admin-
istration
Region 9
Southern California Plating Com-
pany. Paul Hummell
RCRA and CWA/Illegal storage of hazardous waste
and unlawful discharging of the waste into the sewer
system
Region 9
David Arreola
FIFRA/Conspiring to manufacture, distribute and pos-
sess with intent to distribute marijuana grown on
public land and possessing a firearm in furtherance of
the conspiracy
Region 10
William Cavo, Sr.
Water Pollution Control Act, Shoreline Management
Act/Illegal filling and altering course of a river
© * ®
Page 3
EPA Bulletin-April 2015
-------
Sentencings
West Virginia Oil and Gas Company Fined $600.000 for CWA Violations — On April 22, 2015, TRANS ENERGY,
Pleasants County, West Virginia, was sentenced in
federal district court for the Northern District of West
Virginia to two years of probation and ordered to pay
fines totaling $600,000.00 after the company
admitted to multiple violations of the Clean Water Act
in connection with its natural gas drilling activity.
Trans Energy sought to capitalize on Marcellus
Shale natural gas resources in West Virginia. The
company discharged materials such as rock, sand, soil
and stone into streams in Marshall County, West
Virginia to build large impoundments, or reservoirs of
water, to supply water to nearby well sites. The
reservoirs of water were subsequently used for
Marcellus Shale drilling activity. Trans Energy further
failed to properly train and supervise its employees
and relied upon the unsubstantiated representations
of a nearby property owner when determining
whether environmental iaws were being followed. Trans Energy admitted that it unlawfully dumped
pollutants into Marshall County waterways when the company pled guilty in October 2014 to three counts of
"Negligent Discharge of Pollutants without a Permit."
The Clean Water Act, also known as the Federal Water Pollution Control Act, was enacted by Congress
to restore and maintain the integrity of the Nation's waters. It prohibits the discharge of pollutants from a
point source into the waters of the United States
without a permit. Discharges of dredged or fill
materia! into waters of the United States are
prohibited unless authorized by the U.S. Army Corps
of Engineers.
The case was investigated by EPA's Criminal
Investigation Division. It was prosecuted by
Assistant U.S. Attorney David J. Perri and Special
Assistant U.S. Attorney Perry McDaniel.
Back to Defendant Summary
INC., an oil and gas exploration company based in
The impoundments constructed on Robert Christopher's prop-
erty. The pond at the bottom was constructed in 2009 and is
included in the civil enforcement action. The impoundment at
the top of the photo was constructed in 2010 and is the basis
for one of the counts in the criminal information.
The impoundment for the Goshorn well pad constructed in
2011. The white pipe at the bottom leads from the impound-
ment to the well pad.
© * ®
Page 4
EPA Bulletin-April 2015
-------
Sentencings
Waste lagoon pond that is overflowing at Tap Root Dairy.
North Carolina Dairy Company Owner Sentenced to Six Months Home Detention and Fined $15.000 for
Discharging Cow Feces into River -- On April 30, 2015, WILLIAM "BILLY" FRANKLIN JOHNSTON, owner of one
of North Carolina's largest dairy farms in Fletcher, N.C., was sentenced in federal district court for the
Western District of North Carolina to four years of
probation, six months of which he has to spend in
home detention, for his role in the discharging of
cow feces into the French Broad River. He was also
ordered to pay a $15,000 fine. The dairy company,
TAP ROOT DAIRY, LLC, was also fined $80,000 and
was placed on a four-year probationary term. The
company is also required to abide by a
comprehensive environmental compliance plan.
A criminal bill of information filed in U.S.
District Court on November 11, 2013, charged Tap
Root and Johnston, of Mills River, N.C., with one
count of violation of the Clean Water Act, in
connection with the discharging of cow feces into the French Broad River. Johnston, the owner of Tap Root, is
also a Board Member of the North Carolina Department of Agriculture and currently serves as a Council
member for the Town of Mills River.
According to filed documents and statements made in court, Tap Root maintains several hundred
cows and manages hundreds of acres of crop fields in Fletcher. In the annual course of its operations, Tap
Root disposes millions of pounds of solid and liquid animal waste, which are considered pollutants under the
Clean Water Act. Court documents indicate that beginning in 2009, Johnston let his certification lapse as
operator in charge of Tap Root's animal waste management system. Despite receiving repeated warnings and
notices, court records show that as of December 4, 2012, Tap Root still had not designated a valid operator in
charge to oversee its waste management system. Furthermore, according to filed documents, from
September 3, 2012 to December 4, 2012, for a total of 93 days, Johnston and the Tap Root employees had
failed to check and maintain the levels of cow waste in their on-site waste containment lagoons.
According to court records, this resulted in the spillover and discharge of 11,000 gallons of cow feces
and other waste into the French Broad River on December 4, 2012. Testing by the North Carolina
Department of Environment and Natural Resources concluded that the fecal coliform level where the waste
stream meets the river was 99,000 parts per million, whereas anything above 800 parts per million is
indicative of a release. Even downstream, testing found that the fecal coliform level was 2,200 parts per
million. The French Broad River supplies drinking water to more than one million people and is frequently
used for recreational water activities, such as swimming and kayaking. In 2012, North Carolina listed the
French Broad River from Mud Creek to NC Highway 146 as "impaired" for fecal coliform bacteria. Tap Root is
located on this impaired section of the French Broad River.
The case was investigated by EPA's Criminal Investigation Division and the State Bureau of
Investigation's Diversion and Environmental Crimes Unit. The prosecution is being handled by Assistant
United States Attorney Steven R. Kaufman of the U.S. Attorney's Office in Charlotte.
Back to Defendant Summary
Page 5 EPA Bulletin—April 2015
© fr £
-------
Sentencings
Florida Men Sentenced for Poisoning Wildlife - On April 28, 2015, DARYL FISCHER, of Seminole, Florida, and
RUSSELL TAYLOR, of Loxahatchee, Florida, were sentenced in federal district court for the Middle District of
use of the pesticide Aldicarb, which is marketed as Temik.
The men were members of a hunting club leasing
Bucksnort Plantation near Fitzpatrick, Alabama, and on January
31, 2014 sprinkled granules of Temik on portions of a deer
carcass that they spread around the property in an effort to kill
coyotes. Temik is toxic to fish, birds and other wildlife, and is
not approved for use as a poison for animals. The poisoning
resulted in significant loss of animal life, including three fox-
hunting dogs, two red-tailed hawks, and a black vulture. In
addition to their terms of probation, Fischer and Taylor are
prohibited from hunting all game animals for one year, including
deer and migratory birds; are ordered to pay restitution and
fines in the amount of $14,249.79; and will be responsible for
publishing a public notice in the Union Springs Herald regarding
the misuse of toxic pesticides.
The case was investigated by EPA's Criminal Investigation
Division and the United States Fish and Wildlife Service Office of Law Enforcement. It was prosecuted by
Assistant United States Attorney Gray M. Borden.
Back to Defendant Summary
¦
Some of the animals that were killed as a result of ingesting the deer meat illegally laced with Aldicarb.
Alabama to terms of probation for improper
Granules of the pesticide Aldicarb sprinkled on
deer meat The defendants did so with the inten-
tion of killing coyotes, however several animals
died as a result.
© * ®
Page 6
EPA Bulletin-April 2015
-------
Sentencings
Maine Man Fined $5.000 and Sentenced to Probation for False Statement -- On April 6, 2015, CLYDE
ELDRIDGE, of Calais, Maine, was sentenced in federal district court for the District of Maine to one year of
probation and fined $5,000 for making a false statement to federal agents.
According to court records, Eldridge owned C&E Feeds, a feed and pet store in Calais. In 2010, the
EPA and its Canadian counterpart, Environment Canada, were investigating the illegal use of the pesticide
cypermethrin. On September 23, 2010, when asked by two EPA special agents to identify anyone to whom he
had sold cypermethrin and whether he had kept records of the sales, Eldridge said he sold different amounts
of cypermethrin to different people and that he did not keep track of the sales. The investigation revealed,
however, that Eldridge sold cypermethrin on 10-11 occasions to one regional production manager employed
by Kelly Cove Salmon Ltd., a subsidiary of Cooke Aquaculture, and that on each occasion Eldridge made a
note of the quantity picked up by the manager. In April of 2013, Cooke Aquaculture pled guilty in New
Brunswick Provincial Court and paid a $490,000 fine for illegally using pesticides that killed hundreds of
lobsters in waters that were about a mile from Maine's border.
In imposing a sentence, the judge said that Eldridge violated the trust of his fellow citizens in selling
the pesticide, knowing that it would likely be used in violation of Canadian law and that violating laws meant
to protect the environment is a serious matter.
The case was investigated by EPA's Criminal Investigation Division and Environment Canada.
Back to Defendant Summary
® * ®
Page 7
EPA Bulletin-April 2015
-------
Sentencings
California Man Sentenced in the State of Washington for Irvine to Alter Course of a River -- On April 17,
2015, WILLIAM CAYO, SR., of Tahuya, California, was sentenced in the Mason County District Court for the
State of Washington for trying to fill and alter the course of the Tahuya River to 30 days in jail on each of
three counts, to be served concurrently, $8,143 in fines, two years of probation and ordered to follow civil
and criminal environmental laws. He was found to be in violation of the water pollution control act, violation
of the shoreline management act, and conducting unpermitted hydraulic activities in connection with the
alteration of the channel of the river's course in early February 2013,
Cayo used an excavator and bulldozer to fill the river channel near his home, and to redirect the river.
In all, Cayo filled and graded nearly 1 % acres of river bed, Cayo was also sentenced to another 334 days on
two counts and another 60 days on one, all of which were suspended. He also has another $8,500 in
suspended fines. A restitution hearing is set for June 26.
The case was investigated by EPA's Criminal Investigation Division, It was prosecuted by Assistant
Attorney General Bill Sherman.
Back to Defendant Summary
Above, a Google Earth image of the same area shows the river's previous
channel. Below, an aerial photo shows the section of the Tahuya River al-
tered by William Cayo Sr. in February 2013.
EPA Bulletin-April 2015
-------
Sentencings
Fourth Mexican Sentenced for Marijuana Cultivation Operation iri Sequoia National Forest -On April 27,
DAVID ARREOLA, of Michoacan, Mexico, was sentenced in federal district court for the Eastern District of
California to seven and a half years in prison for
conspiring to manufacture, distribute and possess
with intent to distribute marijuana grown on public
land and possessing a firearm in furtherance of the
conspiracy.
According to court documents, Arreola and his
co-defendants, Hernan Cortez-Villasenor, Homero
Pacheco-Rivera, Alfonso Cornejo, and Jose Luis Garcia-
Villa, all of Michoacan, Mexico, conspired in the
cultivation of approximately 8,876 marijuana plants in
the Greenhorn Creek area of the Sequoia National
Forest in Kern County. Arreola also admitted that he
possessed a 9 millimeter semi-automatic handgun in
furtherance of the conspiracy and was in possession
of the weapon at the time of his apprehension at the
grow site by law enforcement officers.
Arreola was also ordered to make restitution
to the U.S. Forest Service of $3,300 for damage to the
land and natural resources caused by the marijuana
operation. According to court documents, the
Greenhorn Creek site sustained extensive damage as a
result of the operation. Native oak trees and other
vegetation were cut down or otherwise killed to make
room for the marijuana plants. The soil was tilled, and
fertilizers and pesticides, including Fosfuro de Zinc, an
illegal rat poison, were spread throughout the site. As
noted in his plea agreement, Fosfuro de Zinc contains Smuggled Mexican pesticides involved in this investigation
zinc phosphide, a highly toxic chemical that can sicken
or kill human beings. When Arreola was apprehended, he was sick and had to be air-lifted out of the grow
site. According to Arreola, several other growers had previously left the site, because they were sick.
Three of Arreola's co-defendants previously entered guilty pleas and were sentenced. Cortez-
Villasenor was sentenced to 10 years in prison, and Cornejo and Garcia-Villa were both sentenced to 3 years
and 10 months in prison. Pacheco-Rivera is a fugitive. Upon completion of his prison sentence, Arreola, like
his co-defendants, faces potential removal to Mexico.
The case was investigated by EPA's Criminal Investigation Division, the U.S. Forest Service, the U.S.
Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement's Homeland Security
Investigations, and the Kern County Sheriff's Office. It was prosecuted by Assistant United States Attorney
Karen Escobar.
Back to Defendant Summary
Page 9 EPA Bulletin—April 2015
© fr £
-------
Sentencings
Former Shell Employee in Wisconsin Ordered to Pay Over $19 Million in Restitution ~ On April 30, 2015,
RANDY JONES, of Houma, Louisiana, a former corrosion coordinator for Shell Pipeline Company L.P., was
sentenced in federal district court for the Eastern District of Wisconsin to five years of probation and ordered
to pay $19,377,785 in restitution.
Previously, Jones pleaded guilty to knowingly failing to conduct required safety test between January
and December 2011 and submitting the false data to the Pipeline and Hazardous Material Safety
Administration (PHMSA). Jones' violations were connected to a pipeline owned by Shell that delivered
commercial aviation jet fuel to General Mitchell International Airport in Milwaukee, Wl. In January 2012, a
hole was discovered in the pipeline at Mitchell Airport after jet fuel began showing up in the soil surrounding
the airport and Wilson Creek. Approximately 9,000 gallons of jet fuel was released from the pipeline.
The case was investigated by EPA's Criminal Investigation Division, the U.S. Coast Guard Investigative
Service, the U.S. Department of Transportation office of Inspector General, and the Federal Bureau of
Investigation with assistance from PHMSA. It was prosecuted by Jennifer A. Whitfield of the Environmental
Crimes Section of the Department of Justice and Tracy M. Johnson of the U.S. Attorney's Office for the
Eastern District of Wisconsin.
Back to Defendant Summary
® * ®
Page 10
EPA Bulletin-April 2015
-------
Plea Agreements
Indiana Brothers Plead Guilty to $145 Million Biofuels Fraud Scheme - CHAD DUCEY, of Fishers, Indiana,
pleaded guilty in federal district court for the Southern District of Indiana for his role in a multi-state scheme
to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel incentives. His two brothers,
CHRIS DUCEY, of North Webster, Indiana, and CRAIG DUCEY, of Fishers, pleaded guilty earlier for their roles
in the same scheme. The Ducey brothers operated E-biofuels LLC, from a facility in Middletown, Indiana. As
part of the scheme, they sold over 35 million gallons of biodiesel to customers for more than $145 million by
falsely claiming that the fuel was eligible for federal renewable energy incentives, when they knew it was
not. In addition, Craig Ducey pleaded guilty to a related $58.9 million securities fraud, which victimized over
625 investors and shareholders of Imperial Petroleum, a publicly-traded company and the parent company of
E-biofuels.
From 2007 through 2012, E-biofuels had a biodiesel manufacturing plant in Middletown. Biodiesel is
a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil
and waste grease from restaurants. Under the Energy Independence and Security Act, properly
manufactured biodiesel was eligible for a one dollar per gallon tax credit as well as another valuable credit
called a Renewable Identification Number (RIN) that petroleum refiners and importers must comply with to
satisfy their federal renewable fuel obligations.
The Ducey brothers admitted that they knew that E-biofuels was fraudulently reselling biodiesel that
they obtained from co-conspirators in New Jersey, which had already been used to claim biodiesel
incentives. By falsely claiming
to have made it themselves in
Middletown, the Ducey
brothers and their co-
conspirators created a second
set of invalid incentives,
which they passed on to their
customers. They realized
huge per gallon profits
through this scheme,
sometimes in excess of
$12,000 per truckload. Over
the course of approximately ' '
two years, the co-conspirators fraudulently sold more than 35 million gallons of fuel for a total cost of over
$145 million. The co-conspirators and their companies realized more than $55 million in gross profits, at the
expense of their customers and U.S. taxpayers.
The Ducey brothers pleaded guilty to conspiracy, false claims against the Internal Revenue Service
(IRS), wire fraud and lying to the EPA and the IRS. In particular, Chad Ducey, an engineer by training, caused
a third-party engineer to submit false reports to justify the production at E-biofuels. Those reports claimed
that E-biofuels was using the chemical process of transesterification to produce biodiesel, when in fact, the
company simply re-sold biodiesel that had been made by others and had already been used to claim
biodiesel incentives.
© * ®
Page 11
EPA Bulletin-April 2015
-------
Plea Agreements
The Ducey brothers face up to 20 years of imprisonment on some of the charges, as well as large fines
and the requirement that they provide full restitution to the victims of this crime, which include U.S.
taxpayers, truck stop companies, fuel traders and others. Craig Ducey will also have to pay restitution to the
victims of the securities fraud. The co-conspirators will also have to forfeit $7.5 million in seized funds,
jewelry, artwork, cars and homes they purchased with the funds obtained through the scheme.The New
Jersey co-conspirators, Joseph Furando and Katirina Pattison, have already pleaded guilty for their
involvement in the scheme, along with the companies they operated, CIMA Green and Caravan Trading
Company, both previously located in Park Ridge, New Jersey.
The case was investigated by EPA's Criminal Investigation Division, IRS- Criminal Investigation, the FBI
and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret
Service and the U.S. Department of Agriculture's Office of Inspector General-Investigations. It is is being
prosecuted by Senior Litigation Counsel Steven D. DeBrota and of the U.S. Attorney's Office of the Southern
District of Indiana, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section of the
Department of Justice's Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake
Schmidt of the Southern District of Indiana and Senior Attorney for the Securities and Exchange Commission.
Back to Defendant Summary
© *
Page 12
EPA Bulletin-April 2015
-------
Plea Agreements
New Jersey Companies and Owner Plead Guilty to Biodiesel Fuel Fraud Scheme ~ On April 15, 2015,
JOSEPH FURANDO, of Montvale, New Jersey, together with two companies he operated in New Jersey,
pleaded guilty in federal district court for the Southern District of Indiana for their parts in an Indiana-
centered scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel
incentives. From 2007 through 2012, e-biofuels owned a biodiesel manufacturing plant in Middletown,
Indiana. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources,
including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act,
properly manufactured biodiesel was be eligible for a dollar per gallon tax credit as well as a another
valuable credit, called a RIN, that petroleum refiners and importers could use to demonstrate compliance
with federal renewable fuel obligations.
Furando has admitted that sometime in late 2009, he and his companies, defendants CARAVAN
TRADING COMPANY and CIMA GREEN, began supplying e-biofuels with biodiesel that had already been
used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could
purchase the biodiesel at low prices, sometimes for more than two dollars per gallon less than biodiesel that
was still eligible for the credits. Furando knew that once he supplied product, e-biofuels and his individual co
-defendants would illegally re-certify it and sell it at the much higher market price for incentivized biodiesel,
known as B100 with RINs. Within the circle of those he trusted, Furando referred to this program of fraud as
"Alchemy." Furando, his companies, and his Indiana co-defendants realized huge per gallon profits through
this scheme, sometimes in excess of $12,000 per truckload. Furando realized his profits through the prices
he charged e-biofuels. Over the course of approximately two years, the defendants fraudulently sold more
than 35 million gallons of fuel for a total cost of over $145.5 million. The defendants realized more than $55
million in gross profits, at the expense of their customers and U.S. taxpayers.
Furando pleaded guilty to all of the charges against him, which included conspiracy, wire fraud, lying
to investigators during a search of his offices and engaging in prohibited financial transactions, money
laundering. He faces up to twenty years of imprisonment on some of the charges, as well as large fines and
the requirement that he provide full restitution to the victims of this crime, which include U.S. taxpayers,
truck stop companies, fuel traders and others. Furando has also agreed to forfeit biodiesel-powered
motorcycles, sports cars, real estate, jewelry, watches and other luxury goods that he purchased with the
proceeds of this fraud. The plea completes the part of this case involving New Jersey defendants. Four
Indiana defendants remain, who face trial in the Southern District of Indiana on May 11, 2015.
The case was investigated by EPA's Criminal Investigation Division, the FBI and the Securities and
Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S.
Department of Agriculture. It is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S.
Attorney's Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the
Department of Justice's Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake
Schmidt of the U.S. Attorney's Office and Senior Attorney for the Securities and Exchange Commission.
Other defendants are scheduled for trial pursuant to the indictment in this case. An indictment is
only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair
trial at which the government must prove guilt beyond a reasonable doubt.
Back to Defendant Summary
© * ®
Page 13
EPA Bulletin-April 2015
-------
Plea Agreements
California Company and Owner Plead Guilty to Dumping Hazardous Wastes Containing Nickel and Zinc into
Sewers ~ On April 14, 2015, SOUTHERN CALIFORNIA (SoCal) PLATING COMPANY, a metal finishing company
located in Logan Heights, California, and its owner, PAUL HUMMELL, admitted illegally storing hazardous
waste and unlawfully discharging the waste into the sewer system. In pleading guilty, in federal district court
for the Southern District of California SoCal Plating acknowledged
that it illegally discharged industrial wastewaters in excess of its
permit limits into the city of San Diego sewer system. Sentencing
for SoCal Plating and Hummell is set for August 3, 2015.
As detailed in court, the firm's permit required compliance
with Federal pretreatment standards for metal finishers, which
limits the daily maximum concentration of nickel to 3.98 mg/L and
the daily maximum concentration of zinc to 2.61 mg/L. However,
SoCal Plating admitted that on July 8, 2013, and October 8, 2013, its
employees discharged industrial wastewater to the sewer system
which contained zinc and nickel in excess of these limits.
Company owner Paul Hummell admitted that the firm's
metal finishing operations generated a number of wastewater
streams, including spent corrosive cleaning and process baths, and
rinse waters which were corrosive and contaminated with toxic
heavy metals.
On January 28, 2014, an inspection by the San Diego
Department of Environmental Health Services ("DEH") at SoCal
Plating revealed drums of wastewater which had been stored at the
site for over 90 days. The drums were sampled and found to
contain chromium in toxic concentrations rendering it federally
regulated hazardous waste. Hummell admitted that he knew that
the industrial wastewater stored at the facility was hazardous
waste and that no permit existed to store hazardous waste at the
SoCal Plating site.
In pleading guilty, SoCal Plating agreed to pay restitution of
$8,266 to DEH and $28,130 to the city of San Diego Industrial Waste
Control Program for costs associated with monitoring the firm's
discharge and disposal of its wastewaters. Wastewater containing
heavy metals such as those generated by metal finishers is required to be treated prior to discharge to the
sewer system in order to avoid compromising the treatment works and/or pass through to the receiving
waters. Heavy metals in high concentrations can damage the digesters at the sewage treatment plants,
causing them to operate less efficiently.
The case was investigated by EPA's Criminal Investigation Division.
Back to Defendant Summary
Inspection photos from inside Southern Cali-
fornia Plating Compnany.
© * ®
Page 14
EPA Bulletin-April 2015
-------
Plea Agreements
Rhode Island Chemical Company to Plead Guilty to Violating CAA bv Failing to Develop and Implement Risk
Storage Plan - On April 6, 2015, MANN DISTRIBUTION, LLC, of Warwick, Rhode Island, also known as Mann
Chemical, LLC, is expected to plead guilty in federal district court for the District of Rhode Island to a federal
charge of violating the Clean Air Act for failing to develop and implement a risk management plan to
minimize the chance of release of hydrofluoric acid from its Warwick facility, and to protect workers, the
community, and emergency and first responders in the event of a release or fire involving the chemical.
At sentencing, the court will be asked to impose a fine of $200,000 and to order the company to
serve a term of three years' probation for failing to adhere to Environmental Protection Agency regulations
which require that a Risk Management Plan be developed, including a "worst case" response plan.
According to a Center for Disease Control and Prevention website, hydrogen fluoride is a chemical
compound that contains fluorine. It can exist as a colorless gas or as a fuming liquid, or it can be dissolved in
water. When hydrogen fluoride is dissolved in water, it may be called hydrofluoric acid. Hydrofluoric acid is
used mainly for industrial purposes, and may cause skin burns, tissue damage and/or respiratory concerns.
EPA regulations require facilities storing more than 1,000 lbs. of hydrofluoric acid to develop and
implement a Risk Management Plan. An EPA inspection in June 2009 determined that Mann Chemical failed
to develop and implement a Risk Management Plan while storing 92 drums of hydrofluoric acid in a
concentration of 70 percent. The inventory indicated that each drum weighed 500 pounds, for a total of
46,000 pounds of hydrofluoric acid.
A sentencing hearing has not yet been scheduled. A plea agreement filed with the court stipulates
that at sentencing the government and Mann Chemical will recommend that the court impose a fine of
$200,000, In addition, Mann Chemical will be required to issue a public apology.
The case was investigated by EPA's Criminal Investigation Division. It is being prosecuted by Assistant
U.S. Attorney Terrence P. Donnelly and Special Assistant United States Attorney Peter Kenyon of EPA.
Back to Defendant Summary
Mann Distribution Facility in Warwich, Rhode Island.
EPA Pub. 310-N-15-004
© * ®
Page 15
EPA Bulletin-April 2015
------- |