Environmental Crimes
Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
Plea Agreements
Sentencings
Defendant Summary
Trials & Settlements
Indictments/
Informations
This bulletin summarizes publicized investigative activity and adjudicated cases
conducted by OCEFT Criminal investigation Division special agents, forensic specialists,
and legal support staff. To subscribe to this monthly bulletin you may sign up for
email alerts on our publications page. Unless otherwise noted, all photos are provided
by EPA-CID.
March 2019-April 2019
In This Edition:
•	Midwest Grain Products, Inc., Harcos Chemicals, Inc.
•	Luminaire Environmental Technologies, John D. Miller, Joseph Miller
•	Rezart Rakaj, Kliton Rakaj
•	Timothy Peer (Mountainaire Village Utility, LLC)
•	Diamond Environmental Services LP, Diamond Maintenance Services,
LLC, Diamond Solid Waste, Inc., Arie Eric De Jong ill, Warren Van
Dam, Jorge Leyva Rodriguez
•	Brian Brundage
•	Terry L. Zintel
•	Craig Lorch, Jeff Zirkle (Total Reclaim)
•	Keystone Biofuels, Ben T. Wooton, Race A. Miner
&EPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-15-007

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Defendant Summary
Region
Defendants
Case Type/Status
1
Rezart Rakaj
Kliton Rakaj
Sentencing
3
Timothy Peer
Plea Agreement
3
Ben T. Wooton
Race A. Miner
Keystone Biofuels
Trial
5
Brian Brundage
Sentencing
5
Luminaire Environmental Technologies
John D. Miller
Joseph Miller
Sentencing
7
Midwest Grain Products, Inc.
Harcos Chemicals, Inc.
Indictment
7
Terry L. Zintel
Sentencing
9
Diamond (3 Companies)
Arie Eric De Jong III
Warren Van Dam
Jorge Leyva Rodriguez
Indictment
10
Craig Lorch
Jeff Zirkle
(Total Reclaim)
Sentencing
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Sentencings
Connecticut Property Owners Who Illegally Removed Asbestos are Sentenced
Rezart Rakaj and Kliton Rakaj were sentenced on April 1, 2019 in New Haven, Connecticut federal court for
offenses related to the illegal and dangerous removal of asbestos at a New Haven property they were reno-
vating in 2015. Rezart and Kliton were each sentenced to one year of probation, a fine of $9,500, and 50
hours of community service.
According to court documents and statements made in court, in November 2015, Rezart and Kliton Rakaj,
who are brothers, and another family member purchased a commercial property located at 206-220 Wallace
Street in New Haven, Connecticut. Prior to purchasing the property, the realtor informed the purchasers that
the property contained asbestos, and that a prior potential purchaser had already obtained a bid of approxi-
mately $117,000 for the legal asbestos abatement of the property. Shortly after the purchase was complet-
ed, the defendants chose not to engage a hazardous materials firm to perform lawful asbestos abatement
and instead employed workers who spent multiple days demolishing portions of the property, ripping out
piping, breaking tiles, and conducting other renovation and construction activities, including the removal of
significant quantities of friable asbestos.
On November 20, 2015, inspectors from the City of New
Haven Health Department, acting on an anonymous com-
plaint, discovered the illegal asbestos removal project at
206-220 Wallace Street. The inspection revealed multiple
instances of illegal removal of asbestos containing "air
cell" pipe wrap and asbestos-containing "mag block" tank
and boiler insulation, both of which contain significant
quantities of dangerous, friable asbestos. Inspectors ob-
served workers removing asbestos-containing material
and throwing it to the floor. The workers performed no
wetting, used no negative air machines to create the re-
quired vacuum effect within workspaces and set up no
critical barriers or protective sheeting to guard against
the release of dangerous asbestos fibers into the environ-
ment. Though the workers wore dust masks and suits,
the masks were not designed for use in asbestos abate-
ment and failed to provide protection against asbestos
fibers. Similarly, because the suits were worn repeatedly
over the course of days and not decontaminated and dis-
posed of after use, they did not protect the workers
against exposure. Inspectors also observed and photo-
graphed 100-150 standard garbage bags filled with sus-
pected asbestos-containing material.
"These defendants recklessly cut corners and endangered the lives of their workers," said U.S. Attorney
Durham. "The U.S. Attorney's Office is committing to prosecuting all who deliberately harm the environment
and risk public health in order to save money."
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Sentencings
"The illegal removal of asbestos insulation and the associated removal of scrap pipe and boilers from old
buildings continues to be a problem throughout the Northeast," said EPS-CID Special Agent in Charge
Amon. "Inhalation of asbestos fibers can result in lung cancer and it therefore poses significant health risks
to all exposed. EPA will continue to hold accountable those who commit such offenses."
On November 16, 2018, Rezart and Kliton Rakaj each pleaded guilty to one count of illegal asbestos removal
in violation of the Clean Air Act.
In addition to the sentence, the defendants also face a fine from the Occupational Safety and Health Admin-
istration (OSHA).
The investigation is being conducted by EPA's Criminal Investigation Division, with the assistance of the City
of New Haven Health Department and U.S. Department of Labor, Occupational Safety and Health Administra-
tion. The case is being prosecuted by a DOJ litigation team.
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Sentencings
Recycling Executive Sentenced to 3 Years in Prison for Scheming to Landfill and Re-Sell Po-
tentially Hazardous Waste
Recycling executive Brian Brundage was sentenced on April 12, 2019 to three years in federal prison for ille-
gally landfilling potentially hazardous electronic waste as part of a scheme to re-sell the materials and avoid
paying income taxes.
Brundage owned Intercon Solutions Inc. and EnviroGreen Processing LLC, which purported to recycle elec-
tronic waste on behalf of corporate and governmental clients. Brundage represented to the clients that the
materials would be disassembled and recycled in an environmentally sound manner. In reality, from 2005 to
2016, Brundage caused thousands of tons of e-waste and other potentially hazardous materials to be land-
filled, stockpiled, or re-sold at a profit to companies who shipped the materials overseas. Brundage evaded
$743,984 in federal taxes by concealing the income he earned from re-selling the e-waste and from paying
himself funds that he falsely recorded as Intercon business expenses. Brundage spent the purported expens-
es for his own personal benefit, including wages for a nanny and housekeeper, jewelry purchases, and pay-
ments to a casino in Hammond, Ind.
Brundage, 47, of Schererville, Ind., pleaded guilty last year to one count of wire fraud and one count of tax
evasion. U.S. District Judge Joan Humphrey Lefkow imposed the three-year prison sentence and ordered
Brundage to pay more than $1.2 million in restitution to his victims.
The sentence was announced by John C. Kocoras, First Assistant United States Attorney for the Northern Dis-
trict of Illinois; Jennifer Lynn, Special Agent-in-Charge of the U.S. Environmental Protection Agency's Criminal
Investigation Division; Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Reve-
nue Service Criminal Investigation Division; James M. Gibbons, Special Agent-in-Charge of the Chicago office
of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations; and Jeffrey Ryan, Spe-
cial Agent-in-Charge of the U.S. General Services Administration's Office of Inspector General, Great Lakes
Regional Investigations Office. The Hong Kong Environmental Protection Department provided valuable as-
sistance in the investigation. The government was represented by Assistant U.S. Attorneys Sean J.B.
Franzblau and Kelly Greening of the Northern District of Illinois, and Special Assistant U.S. Attorney Crissy Pel-
legrin of the EPA.
Brundage admitted in a plea agreement that he caused employees of Chicago Heights-based Intercon and
Gary, Ind.-based EnviroGreen to sell some of the e-waste and other materials to vendors who Brundage
knew would ship the materials overseas. Some of the materials contained Cathode RayTubes, which are
glass video display components of computer and television monitors, and which contain potentially hazard-
ous amounts of lead. Brundage admitted causing multiple tons of CRT glass and other potentially hazardous
materials to be destroyed in environmentally unsafe ways and later landfilled.
"Improper management of cathode ray tubes can pose risk to human health and the environment, as they
contain significant quantities of lead," said Special Agent-in-Charge Lynn. "This case demonstrates that EPA
and our law enforcement partners are committed to protecting the environment and ensuring that compa-
nies follow the law."
"The GSA Office of Inspector General will aggressively pursue contractors who make false representations in
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Sentencings
order to obtain federal business," said Special Agent-in-Charge Ryan.
"This sentence should serve as a reminder that HSI will continue to work with its federal, state and local part-
ners to pursue offenders who endanger others by engaging in fraud and deceit," said Special Agent-in-Charge
Gibbons.
The case was investigated by EPA's Criminal Investigation Division, IRS, ICE's Homeland Security Investiga-
tions, and GSA's Office of Inspector General, with assistance from the Hong Kong Environmental Protection
Department. The case was prosecuted by a DOJ litigation team.
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Sentencings
Defendants Sentenced For Fraud Scheme Involving Minnesota Environmental Company's
Improper Disposal Of Toxic Chemicals
Luminaire Environmental and Technologies, Inc., and co-defendants John D. Miller Jr. and Joseph V. Miller,
were sentenced for a $1 million fraud scheme involving the improper disposal of toxic waste. Luminaire and
John Miller were sentenced on March 22, 2019 and Joseph Miller was sentenced on March 5, 2019.
According to the defendants' guilty pleas and documents filed in court, Luminaire Environment and Technol-
ogies, Inc. (Luminaire) provided recycling and waste disposal services to customers. Among other services,
Luminaire offered to pick up customers' fluorescent light ballasts containing polychlorinated biphenyls
(PCBs), transport the PCB-containing ballasts to the Luminaire facility located in Plymouth, Minnesota, and
remove and dispose of all the PCBs in accordance with the Toxic Substances Control Act (TSCA). In exchange,
Luminaire charged customers a fee of approximately $0.35 per pound
of PCB lighting ballasts plus transportation costs. Because the PCBs con-
tained in the ballasts are considered a toxic chemical, TSCA mandates
special procedures and documentation for the transportation and dis-
posal of PCB waste.
According to the defendants' guilty pleas and documents filed in court,
between 2010 until 2015, John Miller, owner of Luminaire, and other
Luminaire employees falsely represented to customers that Luminaire
would properly transport and dispose of customers' toxic chemicals.
Instead, after picking up loads of PCB-ballasts from customers, John
Miller instructed Luminaire employees to remove warning labels from
the containers holding the PCB-ballasts, and then sell the PCB-ballasts
as scrap metal to scrap yards and metal recycling facilities. In order to
conceal the fact that the PCB-ballasts had not been received and pro-
cessed at Luminaire's facility, John Miller directed Luminaire employees, including Joseph Miller, to falsely
certify on shipping manifests that the PCB-ballasts had arrived at Luminaire's facility. At John Miller's direc-
tion, Luminaire employees also sent copies of the falsified shipping documentation by mail to customers and
to certain state environmental agencies. In addition, John Miller instructed Luminaire employees to prepare
and deliver falsified invoices to customers who, in turn, made payments to Luminaire. As a result of the
scheme, Luminaire fraudulently collected more than $1,000,000 in fees and additional profits.
Luminaire was sentenced to five years probation with special conditions, including an Environmental Compli-
ance Plan and fined $10,000. John Miller was sentenced to 36 months imprisonment, fined $15,000 and or-
dered to pay $1,049,848.79 in restitution. Joseph Miller was sentenced to two years probation and fined
$3,000.
This case investigated by EPA's Criminal Investigation Division and the Hennepin County Department of Envi-
ronmental Protection. The case was prosecuted by a DOJ litigation team.
after picking up
loads of PCB-
ballasts from cus-
tomers, John Miller instruct-
ed Luminaire employees to
remove warning labels from
the containers holding the
PCB-ballasts, and then sell
the PCB-ballasts as scrap met-
al to scrap yards and metal
recycling facilities.
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Sentencings
Biofuel Plant Owner-Operator Sentenced for Falsifying Tax Refunds and Ordered to Pay
$531,000 in Restitution
Terry L. Zintel of Sunset Hills, Missouri, was sentenced in federal court on April IS, 2019 to 1 year and 1 day
in prison for three counts of falsifying claims. Zintel was also ordered to pay restitution in the amount of
$531,947.75.
According to court documents, between 2012 and 2014, Terry L. Zintel was a 50% owner and operator of the
biofuel plant, Midwest Biodiesel Products, located in Roxanna, Illinois. As co-owner and operator, Zintel pre-
sented to the Internal Revenue Service at least three claims for refund for excise taxes in 2013. As a result of
these fraudulent claims and others, the IRS incurred a total tax loss of $531,947.75.
"We will continue to be
relentless in our mission
to stop tax schemes and
bring the criminals who
run them to justice," said
Karl Stiften, Special Agent
in Charge of the St. Louis
Field Office of IRS, Crimi-
nal Investigation, "Tax
credits are tax incentives;
not an incentive to steal
from the government."
"A strong enforcement
program is essential to
maintaining the integrity
of the RINs market," said
Special Agent in Charge Jeffrey Martinez of EPA's criminal enforcement program in Missouri. "Today's sen-
tencing shows that EPA and their law enforcement partners will continue to hold parties accountable when
they defraud their customers and Renewable Fuel Standards program."
This case was investigated by the IRS Criminal Investigation Division, the FBI, and EPA's Criminal Investigation
Division. The case was prosecuted by Assistant U.S. Attorney Gwen Carroll.
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Sentencings
Owners of Northwest's Largest Electronics Recycling Firm Sentenced to Prison for Wire
Fraud Conspiracy—Secretly Exposed Foreign Workers to Mercury Waste to Increase Corpo-
rate Profits and Enrich Themselves
The owners arid Chief Executive Officers of Total Reclaim, the Northwest's largest recycler of electronic
waste, were sentenced on April 23, 2019 in U.S. District Court in Seattle to 28 months in prison and three
years of supervised release for conspiracy to commit wire fraud. At the sentencing hearing, U.S. District
Judge Richard A. Jones noted that with the men's conduct could have impacted generations with mercury
poisoning. "Your conduct spanned seven years and only stopped because you were caught. You had multi-
ple opportunities to say enough is enough," Judge Jones said.
Craig Lorch, 61, of Seattle, and Jeff Zirkle, 55, of Bonney Lake, Washington, earned millions of dollars through
Total Reclaim by promising to recycle safely electronic products such as flat screen monitors. In marketing
Total Reclaim's services, Lorch and Zirkle warned that the products contained hazardous materials that can
cause serious health conditions if processed in unsafe conditions such as those that exist in developing coun-
tries in Asia. Lorch and Zirkle promised customers that Total Reclaim would not export electronic waste to
developing countries. But, in fact, the defendants secretly caused over 8 million pounds of mercury-
containing flat screen monitors to be exported to Hong Kong, where they were demolished in an environ-
mentally unsafe manor.
"Motivated by greed, these de-
fendants betrayed every pledge
they made to be good environ-
mental stewards," said First Assis-
tant U.S. Attorney Tessa M. Gor-
man. "They protected their sala-
ries of more than a million dollars
a year, while harming the envi-
ronment and risking the lives of
disadvantaged Chinese workers
who struggle daily just to support
their families"
Total Reclaim was the biggest par-
ticipant in "E-Cycle Washington," a
program created by the Washing-
ton legislature to provide for the safe recycling of hazardous electronic products. Under E-Cycle Washington,
consumers drop off used electronics at stations such as Goodwill Industries free of charge. The program then
paid Total Reclaim to recycle the electronics according to Washington Department of Ecology stand-
ards. Those standards bar recyclers from sending hazardous electronics products overseas.
According to records filed in the case, Total Reclaim promoted itself as a responsible electronics recy-
cler. Total Reclaim's website stated that "our commitment to environmental responsibility is at the core of
everything Total Reclaim does." Total Reclaim signed a public pledge in which it promised not to "allow the
Photograph from a Basel Action Network's Evidentiary report regarding e-Stewards Violations
that depict the final disposal site in Hong Kong of fiat screen monitors that were, in part,
imported from Total Reclaim

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Sentencings
export of hazardous E-waste we handle to be exported" to developing countries, where workers are known
to disassemble electronics, which contain dangerous materials such as mercury, without safety precau-
tions. Total Reclaim signed agreements with customers, such as the City of Seattle, in which the customers
agreed to pay Total Reclaim to recycle electronics in accordance with these standards. According to court
filings, it would have cost Total Reclaim about $2.6 million to appropriately dispose of the monitors.
In 2008, contrary to its promises to the public, Total Reclaim began secretly exporting flat screen monitors to
Hong Kong to avoid the cost of safely recycling the monitors in the United States. Flat screen monitors are
known to contain mercury, which can cause organ damage, mental impairment, and other serious health
consequences to people exposed to the material. Lorch and Zirkle caused at least 8.3 million pounds of mon-
itors to be shipped to Hong Kong between 2008 and 2015. To prevent customers and auditors from learning
of the practice, Lorch and Zirkle falsified documents, made false statements to customers, and stored the
monitors at an undisclosed facility while they awaited shipping.
The defendants' fraud was discovered in 2014 by a non-governmental organization known as the Basel Ac-
tion Network ("BAN"). BAN, which studies the export of electronic waste, placed electronic trackers on flat
screen monitors and deposited them for recycling. The trackers showed that the monitors were collected by
Total Reclaim and then exported to Hong Kong. When BAN representatives followed the tracking devices to
Hong Kong, they discovered that the monitors were being dismantled by laborers who smashed the monitors
apart without any precautions to protect the workers or the environment. After BAN notified Lorch and Zirk-
le of its findings, Lorch and Zirkle tried to cover up their fraud by altering hundreds of shipping records.
Lorch and Zirkle have agreed to pay $945,663 in restitution.
As prosecutors wrote in their sentencing memorandum, this case is more than a financial fraud. "Lorch and
Zirkle's crime has all the hallmarks of a classic financial fraud. It includes lies to customers and auditors, the
falsification of hundreds of documents, millions of dollars in ill-gotten gains, and a cover-up after the fraud
was discovered. But this offense stands apart from the typical fraud because the greatest damage is not
measured in dollars and cents. Rather, it lies in the health consequences that resulted from defendants' cal-
culated choice to prioritize their own economic well-being over the health of faceless foreign workers."
The case was investigated by the EPA's Criminal Investigation Division and is being prosecuted by Assistant
United States Attorney Seth Wilkinson.
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Plea Agreements
West Virginia Sewage Water Treatment Plant Owner/Operator Admits to Clean Water Act
violations
On April 3, 2019, Timothy Peer admitted to violating permits and discharging untreated sewage from his
sewage treatment plant into the North Branch of the Potomac River,
Peer, age 55, was the owner of Mountainaire Village Utility, LLC, a sewage water treatment plant serving the
residents of Mountainaire Village near Ridgeley, West Virginia. Peer, who owned and operated the business
from early 2.008 to July 2016 pled guilty to one count of "Knowing Violation of Permit Conditions" and one
count of "False Statements on Discharge Monitoring Reports."
From 2014 to 2016, Peer
admitted to failing to main-
tain the treatment plant,
resulting in untreated and
undertreated sewage be-
ing discharged into the
North Branch of the Poto-
mac River, violating the
Clean Water Act and his
permit. Peer also admitted Mountainaire Package Plant, April 2016
to falsely reporting quarterly
testing on the wastewater from the plant.
Mountainaire Polishing Pond
Peer faces not more than 3 years; not less than $5,000 (if a fine is im-
posed) and not more than $50,000 per day of violation; or $250,000;
or twice the amount of gain or loss; for the permit violation count. He
faces up to two years incarceration and a fine of up to $10,000 for
the discharge count. Under the Federal Sentencing Guidelines, the
actual sentence imposed will be based upon the seriousness of the
offenses and the prior criminal history, if any, of the defendant.
EPA's Criminal Investigation Division and the West Virginia Depart-
ment of Environment Protection investigated the case. The case is
being prosecuted by a DOJ litigation team.

Mountainaire Overflow Conduit
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Trials and Settlements
Jury Finds Pennsylvania Biofuel Company Owners Guilty of Tax and False Statements Con-
spiracy
On April 23, 2019, following a 14-day jury trial in Harrisburg, Pennsylvania, Ben T. Wootton, of Enola, Pennsyl-
vania, and Race A. Miner, of Buena Vista, Colorado, were found guilty of one count of conspiracy to make
false statements to the Environmental Protection Agency (EPA), six counts of making false statements to the
EPA, one count of conspiracy to defraud the Internal Revenue Service (IRS), and one count of aiding and as-
sisting in the filing of a false claim with the IRS, announced Assistant Attorney General Jeffrey Bossert Clark of
the Justice Department's Environmental and Natural Resources Division (ENRD), Principal Deputy Assistant
Attorney General Richard E. Zuckerman of the Justice Department's Tax Division, U.S. Attorney David J. Freed
for the Middle District of Pennsylvania, EPA Assistant Administrator for Enforcement and Compliance Assur-
ance Susan Bodine, and IRS-CI Special Agent in Charge Kelly Jackson. The jury also found the corporation,
Keystone Biofuels Inc. (Keystone), guilty of conspiring to make false statements to the EPA and six counts of
making false statements to the EPA.
According to the evidence presented at tri-
al, Wootton and Miner co-owned and oper-
ated Keystone, originally in Shiremanstown,
Pennsylvania, and later in Camp Hill, Penn-
sylvania. Keystone purported to be a pro-
ducer and seller of biodiesel, a type of re-
newable fuel. From August 2009 through
September 2013, Wootton and Miner par-
ticipated in a conspiracy to fraudulently
generate renewable fuel credits, identified
by renewable identification numbers (RINs)
on Keystone fuel and, through January
2012, to fraudulently claim tax refunds
based on the Biodiesel Mixture Tax Credit, a
federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mix-
ture as a fuel.
"These defendants are guilty of premeditated fraud, pure and simple," said Assistant Attorney General
Clark. "They directly stole money from the federal fisc and they masqueraded as benefactors of the environ-
ment. We are grateful for the cooperation of our partners in the Tax Division and U.S. Attorney's Office in
putting an end to this scheme."
"Abuse of biodiesel fuel credits harms law abiding renewable fuel producers and the United States govern-
ment," said Principal Deputy Assistant Attorney General Zuckerman. "The Tax Division along with its partners
at United States Attorney's Offices, ENRD, IRS-CI, and EPA will vigorously prosecute those who fraudulently
claim biodiesel fuel credits and violate the criminal law."
"The defendants in this case participated in a criminal scheme that struck directly at the heart of a govern-
ment program that was created to benefit both honest business owners and the community at large by en-
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Trials and Settlements
couraging the development and use of clean bio-diesel fuel," said U.S. Attorney David J. Freed. "Instead, the
defendants defrauded their fellow citizens to the tune of more than 4 million dollars. Working with our part-
ners, we will not rest in pursuing cases that target our shared financial resources."
"Today's guilty verdict is a victory for the American taxpayer," said IRS-CI Special Agent in Charge Kelly Jack-
son. "IRS Criminal Investigation will pursue anyone who burns the biodiesel industry by enriching themselves
through tax credits they are not entitled to."
"Today's guilty verdict demonstrates the severe consequences for anyone who tries to make a profit by de-
frauding the RINS market," said EPA Assistant Administrator for Enforcement and Compliance Assurance Su-
san Bodine. "EPA and its federal partners worked together to protect the integrity of the Renewable Fuels
Standard program by uncovering and prosecuting the defendants' criminal activities."
According to evidence presented at trial, as part of the conspiracy,
Wootton and Miner caused inflated fuel amounts to be reported to the
IRS. The inflated fuel numbers supported their fraudulent claims for tax
refunds on fuel Keystone was not producing. To account for the inflated
fuel amounts, Wootton and Miner created false books and records and
engaged in a series of sham financial transactions intended to mirror the
false books and records. In addition, Miner doctored fuel samples and
test results to fraudulently claim tax refunds and RINs on fuel that did
not meet the requisite quality standards to qualify for the tax refunds
and RINs. It is estimated that over $10 million was generated from the
fraudulent RIN sales, and the total tax loss to the government resulting
from the defendants' conduct is approximately $4,149,983.41.
Wootton and Miner face a statutory maximum sentence of five years in prison on each conspiracy count,
each false statement to the EPA count, and three years in prison on the count of filing a false tax claim with
the IRS, as well as periods of supervised release, restitution, and monetary penalties.
Assistant Attorney General Clark, Principal Deputy Assistant Attorney General Zuckerman, and U.S. Attorney
Freed thanked agents of IRS-Criminal Investigation and EPA Criminal Investigation Division, who conducted
the investigation, and Senior Litigation Counsel Howard P. Stewart of the Justice Department's Environmental
and Natural Resources Division, Trial Attorneys Mark Kotila, Kimberly Ang, and Michael Vasiliadis of the Jus-
tice Department's Tax Division, Assistant U.S. Attorney Geoffrey MacArthur, and Special Assistant U.S. Attor-
ney David Lastra, who prosecuted the case.
The case was investigated by EPA and IRS Criminal Investigation Divisions . The case was prosecuted by a DOJ
litigation team.
Miner doctored
fuel samples
and test
results to fraudulently claim
tax refunds and RINs on fuel
that did not... qualify for the
tax refunds
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Indictments/Information
California Companies and Executives Charged with Tampering with Emission Control Devic-
es on Diesel Truck Fleet
On April 11, 2019, a federal grand jury in San Diego returned a six-count indictment charging three San Mar-
cos companies, two managers and a technician with various felonies related to tampering with emission con-
trol devices on heavy-duty diesel trucks.
Diamond Environmental Services LP, Diamond Maintenance Services, LLC and Diamond Solid Waste, Inc.
(collectively "Diamond") of San Marcos, California, plus owner and manager Arie Eric De Jong III, manager
Warren Van Dam and technician Jorge Leyva Rodriguez of ECM Diesel Programming were charged with con-
spiring to manipulate the electronic control module (ECM) on Diamond's fleet of heavy duty diesel
trucks. The alleged manipulation was designed to disable the monitoring system that would otherwise cause
the truck to effectively become non-operational if the diesel emissions filter became too dirty with diesel par-
ticulates.
Since model year 2008, EPA regulations required all heavy-duty diesel trucks to be equipped with a comput-
erized system of electronics and sensors that monitored all emission-related engine systems and compo-
nents. If a malfunction or problem occurred within the emission system - for example, the diesel particulate
filter, or DPF, became dirty with soot that needed to be "regenerated" or burned off - the monitoring system
would cause a Malfunction Indicator/Check Engine Light to be illuminated in the truck's cabin. If the hard-
ware emission system problem was not resolved, the monitoring system could limit the top speed of the
truck to as low as five miles per hour (an effect commonly referred to as "limp mode" or "power reduced
mode"), providing an incentive for the truck's operator to repair the truck.
The indictment alleges that the defendants agreed to reprogram the ECMs to avoid the costs associated with
the need to regenerate the diesel particulate filters (DPFs) on the heavy-duty diesel trucks in the fleets oper-
ated by defendant Diamond Environmental Services, LP and Diamond Solid Waste Services, Inc., and main-
tained by Diamond Maintenance Services, LLC. According to the indictment, employees removed the ECMs
from trucks in their fleet and shipped them out of California to be reprogrammed, and, in addition, defend-
ant Jorge Martin Leyva Rodriguez travelled from Mexico to Diamond locations in San Marcos and San Diego
to reprogram the ECMs.
The indictment alleges that, in order to keep trucks operating with DPFs that had not been cleaned by regen-
eration, employees punched holes through the honeycomb cores of the DPFs on some of the heavy-duty die-
sel trucks to allow the free flow of air through this portion of the emission system, without filtration. It is fur-
ther alleged that in order to conceal the fact that the emissions systems on some of the heavy-duty diesel
trucks were not operating properly, employees prepared false opacity (smog) test results for such trucks, us-
ing an entirely different truck to achieve passing results. According to the indictment, when the co-
conspirators learned that action by the authorities was imminent, defendant Rodriguez returned to the Dia-
mond facilities to reprogram the software of the ECMs on the truck fleet in order to conceal the 2016 altera-
tions. Defendants Diamond Environmental Services, LP, Arie Eric De Jong III and Jorge Levya Rodriguez are
charged with evidence tampering, based on the later alterations to the ECMs.
"We are all the victims of environmental crime," said U.S. Attorney Robert Brewer. "We aren't going to allow
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Indictments/Information
companies to take shortcuts and pollute the environment." Brewer praised prosecutor Melanie Pierson and
investigators from the FBI and the U.S. Environmental Protection Agency, Criminal Investigation Division, for
protecting the public.
San Diego FBI Acting Special Agent in Charge Suzanne Turner noted, "Today's indictments underscore the
FBI's continued commitment to our law enforcement partners in combatting environmental crime in San Die-
go County. The alleged activity impacts every citizen and visitor to San Diego by contributing to declining air
quality and increasing public exposure to airborne pollutants. The FBI will continue to work diligently to pro-
tect the citizens of San Diego County from entities engaged in illegal business practices which result in envi-
ronmental harm."
"The defendants have been charged with conspiring to violate the Clean Air Act and tampering with the emis-
sions control equipment on their commercial diesel trucks," said Special Agent-in-Charge Jay M. Green of
EPA's criminal enforcement program in California. "The alleged crimes would increase air pollution linked to
respiratory illnesses and environmental degradation. Today's indictment serves as a reminder that EPA and
our partners are steadfast in our commitment to protect human health and the environment."
The case was investigated by EPA's Criminal Investigation Division and the FBI. The case is being prosecuted
by a DOJ litigation team.
An indictment is merely an accusation. Defendants are presumed innocent unless and until proven guilty.
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Page 15	EPA Bulletin: Mar—Apr 2019

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