Defendant Summary
Trials & Settlements
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. Unless otherwise noted, all photos are provided
by EPA-CID.
July—August, 2022
In This Edition:
Robert Douglas - Region 4
Jorge Murillo—Region 4
ASP Plating - Region 5
DEM Technology LLC, Evan Morgan - Region 5
FCA US LLC (Formerly Chrysler Group LLC) - Region 5
Lynn Eich - Region 7
Sezgin Baran Korkmaz - Region 8
Wasatch Railroad Contractors, John Eldon Rimmasch—Region 8
Bobby Khalili - Region 9
Eco Shield, LLC, Samir Haj - Region 9
Hydro Extrusion USA (Hydro) - Region 10
&EPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-15-007
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Defendant Summary
Region
Defendants
Case Type/Status
4
Robert Douglas
Plea Agreement
4
Jorge Murillo
Plea Agreement
5
ASP Plating
Plea Agreement
5
Evan Morgan
DEM Technology LLC
Plea Agreement
5
FCA US LLC (Formerly Chrysler Group LLC)
Sentencing
7
Lynn Eich
Plea Agreement
8
Sezgin Baran Korkmaz
Information
8
Wasatch Railroad Contractors, John Eldon
Rimmasch
Sentencing
9
Bobby Khalili
Sentencing
9
Eco Shield, LLC
Samir Haj
Sentencing
10
Hydro Extrusion USA (Hydro)
Indictment
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EPA Bulletin: July—August 2022
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Sentencings
FCA US LLC Sentenced in Connection with Conspiracy to Cheat U.S. Emissions Tests
Automaker to Pay Approximately $300 Million in Criminal Penalties in Michigan
FCA US LLC (FCA US), formerly Chrysler Group LLC, was sentenced on August 2, 2022 in federal court in De-
troit and ordered to pay a fine of $96,145,784; and a forfeiture money judgment of $203,572,892. The court
also imposed a three-year term of organizational probation.
The conviction results from the company's conspiracy to defraud U.S. regulators and customers by making
false and misleading representations about the design, calibration, and function of the emissions control sys-
tems on more than 100,000 Model Year 2014, 2015, and 2016 Jeep Grand Cherokee and Ram 1500 diesel
vehicles, and about these vehicles' emission of pollutants, fuel efficiency, and compliance with U.S. emissions
standards.
"This case demonstrates the Criminal Division's dedication to prosecuting
companies that seek to place profits above full candor, good corporate gov-
ernance, and timely remediation," said Assistant Attorney General Kenneth A.
Polite, Jr. of the Justice Department's Criminal Division. "The sentence shows
that companies that engage in misleading U.S. regulators, or their own cus-
tomers, will be held accountable."
"The sentence is an appropriate punishment for a company that schemed to defraud regulators and consum-
ers," said U.S. Attorney Dawn N. I son. "All corporations should be transparent and honest in dealing with the
federal government and the public. This prosecution reflects how seriously my office takes this principle."
"The sentencing of FCA US, which includes a $300M criminal penalty, is the result of an exhaustive three-year
investigation," said Assistant Attorney General Todd Kim of the Justice Department's Environment and Natu-
ral Resources Division. This resolution shows that the Department of Justice is committed to holding corpo-
rate wrongdoers accountable for misleading regulators. My sincere thanks go to our investigative partners at
EPA-CID and the FBI."
"The sentencing clearly demonstrates that the EPA and our federal partners will hold major corporations like
FCA accountable for complying with vehicle emissions standards," said Acting Assistant Administrator Larry
Starfield for the Environmental Protection Agency's Office of Enforcement and Compliance Assurance.
"Stopping violations of environmental laws and the defrauding of consumers is paramount to the protection
of clean air and human health."
According to the company's admissions and court documents, beginning at least as early as 2010, FCA US de-
veloped a new 3.0-liter diesel engine for use in FCA US's Jeep Grand Cherokee and Ram 1500 vehicles (the
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EPA Bulletin: July—August 2022
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Sentencings
Subject Vehicles) that would be sold in the United States. FCA US designed a specific marketing campaign to
market these vehicles to U.S. customers as "clean EcoDiesel" vehicles with best-in-class fuel efficiency. How-
ever, according to court documents, FCA US installed software features in the Subject Vehicles and engaged
in other deceptive and fraudulent conduct intended to avoid regulatory scrutiny and to fraudulently help the
Subject Vehicles meet the required emissions standards, while maintaining features that would make them
more attractive to consumers, including with respect to fuel efficiency, service intervals, and performance.
Specifically, FCA US purposely calibrated the emissions control systems on the Subject Vehicles to produce
less NOx emissions during the federal test procedures, or driving "cycles," than when the Subject Vehicles
were being driven by FCA US's customers under normal driving conditions. FCA US then engaged in deceptive
and fraudulent conduct to conceal the emissions impact and function of the emissions control systems from
its U.S. regulators and U.S. customers by (a) submitting false and misleading applications to U.S. regulators to
receive authorization to sell the vehicles, (b) making false and misleading representations to U.S. regulators
both in person and in response to written requests for information, and (c) making false and misleading rep-
resentations to consumers about the Subject Vehicles in advertisements and in window labels, including that
the Subject Vehicles complied with U.S. emissions requirements, had best-in-class fuel efficiency as measured
by EPA testing, and were equipped with "clean EcoDiesel engine[s]" that reduced emissions.
For example, FCA US referred to the manner in which it manipulated one method of emissions control as
"cycle detection" and "cycle beating." Without the "cycle beating" use of this emissions control software, the
Subject Vehicles were unable to pass the emissions portions of the federal test procedures while also receiv-
ing a fuel efficiency rating that could be marketed to FCA US's potential customers as "best-in-class," con-
sistent with FCA US's 3.0-liter diesel program's goals, timing, and marketing strategy. Because FCA US knew
that the decision to calibrate the emissions control system used on the Subject Vehicles to perform different-
ly "on cycle" versus "off cycle" would be subjected to significant scrutiny by U.S. regulators, FCA US made
false and misleading representations to regulators to ensure that it obtained regulatory approval to sell the
Subject Vehicles in the United States.
Under the terms of FCA's guilty plea, which has been approved by the Court, FCA has agreed to continue to
cooperate with the Department of Justice in any ongoing or future criminal investigations relating to this con-
duct. In addition, FCA US has also agreed to continue to implement a compliance and ethics program de-
signed to prevent and detect fraudulent conduct throughout its operations and will report to the department
regarding remediation, implementation, and testing of its compliance program and internal controls.
The government reached this agreement with FCA US based on several factors including, among others, the
nature and seriousness of the offense conduct, the company's failure to voluntarily and timely disclose the
conduct that triggered the investigation, and its failure to conduct sufficient, timely, or appropriate remedial
action. FCA US received credit for cooperation with the department's investigation and has enhanced, and
committed to further enhance, its compliance program and internal controls.
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EPA Bulletin: July—August 2022
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Sentencings
In the related criminal prosecution, three FCA employees, Emanuele Palma, Sergio Pasini, and Gianluca Sab-
bioni were indicted for conspiracy to defraud the United States and to violate the Clean Air Act and six counts
of violating the Clean Air Act. They await trial. An indictment is merely an allegation, and all defendants are
presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
EPA's Criminal Investigations Division and the FBI conducted the investigation. Prosecution was handled by a
DOJ litigation.
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EPA Bulletin: July—August 2022
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Sentencings
Las Vegas Apartment Complex Manager Sentenced for Violating Clean Air Act Asbestos
Regulations at Two Facilities
On July 20, 2022, Bobby Khalili was sentenced to one year and one day in prison and 36 months of supervised
release for renovating two apartment complexes in violation of federal Clean Air Act regulations intended to
prevent human exposure to toxic airborne asbestos fibers.
Bobby Khalili, 46, of Los Angeles, was indicted by a grand jury sitting in the District of Nevada in September
2019, in connection with asbestos-related Clean Air Act violations at a Las Vegas apartment complex. The
grand jury later returned a superseding indictment against Khalili in
July 2021, in connection with new Clean Air Act asbestos violations
at a second apartment complex, which Khalili committed while on
pretrial release for the first set of charges. Khalili pled guilty on
March 11, to failing to safely remove asbestos prior to renovation
at each complex.
As part of his guilty plea, Khalili acknowledged that, on behalf of
Las Vegas Apartments LLC, he oversaw renovation activities at both
apartment complexes. He further admitted that he was aware of
asbestos-containing materials at both buildings, and that he hired
untrained individuals to tear out those materials without following asbestos work-practice standards pre-
scribed by the Clean Air Act. Those work practice standards require that asbestos-containing materials be
safely removed prior to general renovation activity taking place. Asbestos-containing materials must be kept
wet at all times to prevent dust escaping, sealed in leak-proof bags, and disposed of at facilities authorized to
accept asbestos waste. At both apartment buildings, untrained laborers removed asbestos-containing drywall
and ceiling texture without wetting or containment, releasing asbestos fibers into the surrounding atmos-
phere.
Khalili also admitted to taking steps to evade law enforcement at each site. At the first apartment complex,
Khalili attempted to have a dumpster filled with asbestos waste removed from the site when inspectors from
the Clark County Department of Air Quality discovered asbestos-related violations. At the second complex,
where he oversaw illegal renovations while on pretrial release, he instructed the contractor in charge of the
renovation to lie to inspectors about who owned and oversaw the project, in an attempt to blame another
person for the Clean Air Act violations he knowingly committed. According to the government's sentencing
memorandum filed with the court, Khalili also created a fake contract purportedly showing that other per-
son's responsibility for the renovation; in truth, that person was deceased at the time of the project.
Inhalation of airborne asbestos fibers has been determined to cause lung cancer, asbestosis and mesothelio-
ma, an invariably fatal disease. Congress and the EPA have determined that there is no safe level of exposure
to asbestos.
"The sentencing demonstrates that cutting corners on asbestos abatement will not result in a slap on the
wrist," said Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Re-
sources Division (ENRD). "These are serious offenses with serious consequences, and we will continue to
work with EPA and our partners in U.S. Attorneys' Offices to prosecute violations of the Clean Air Act's asbes-
Hi
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EPA Bulletin: July—August 2022
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Sentencings
tos safety regulations."
"The defendant placed the public in danger of inhaling asbestos fibers when he failed to follow Clean Air Act
regulations," said U.S. Attorney Jason M. Frierson for the District of Nevada. "This sentence sends a deterrent
message that the U.S. Attorney's Office and our partners will hold accountable individuals who violate federal
environmental laws that are designed to protect workers and our communities."
"The defendant failed to provide for the required safe removal of material containing asbestos," said Special
Agent in Charge Scot Adair of EPA's Criminal Enforcement Program in Nevada. "In addition, the defendant
created an elaborate scheme in an effort to deceive law enforcement and regulators. The sentencing reflects
our commitment to holding people like Khalili accountable for their criminal conduct."
The case was investigated by EPA's Criminal Investigation Division and Special agents of the EPA and the Clark
County Department of Air Quality. Prosecution was handled by a DOJ litigation team.
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Page 7 EPA Bulletin: July—August 2022
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Sentencings
California Firm and Owner Sentenced in COVID-19 Fraud Scheme
Ori August 12, Eco Shield, LLC and its owner, Samir Haj, were sentenced in federal court in connection with
the importation, shipping and sale of "EcoAirDoctor" during the pandemic.
Haj was sentenced to eight months in custody, and both defendants (Eco Shield and Haj) were ordered to
forfeit $427,689 in proceeds and pay restitution of $86,754, while the company was ordered to pay a fine of
$42,000. EcoAirDoctor consisted of a small badge clipped to clothing that released chlorine dioxide into the
air and was represented by the defendants to protect the user "from airborne infectious diseases" including
COVID-19.
Products making these types of public health claims are regulated by the U.S. Environmental Protection
Agency (EPA), which requires extensive testing to substantiate the claims of efficacy and safety prior to ap-
proving them for registration and sale in the United States. EcoAirDoctor was not registered with the EPA,
and testing performed on behalf of the defendants revealed that the badge was not measurably effective "at
killing off a useful number of microbes within the air."
The EcoAirDoctor badge consisted of sodium chlorite and natural zeolite. When the product was opened, the
zeolite contacted the sodium chlorite, releasing chlorine dioxide gas. The EPA has established a refer-
ence concentration for long-term continuous exposure to chlorine diox-
ide of 0.00007 parts per million (ppm). Risks from the inhalation of chlo-
rine dioxide are a concern if the air concentrations people are exposed
to exceed the reference concentration. The documentation provided by
Eco Shield, LLC states that levels below 0.0001 do not kill viruses and
claims that the concentration for viral inactivation should be between
0.0001 and 0.1 ppm. Based on these figures, if the defendants' product
emitted chlorine dioxide gas at levels deemed safe by the EPA, it would
not be at levels sufficient to kili viruses.
Both sodium chlorite and chlorine dioxide (nonhydrate) fall into Hazard
Class 5.1 under the U.S. Postal Service ("USPS") rules and regulations, for
which mailing is prohibited. Transportation of these materials via USPS is
strictly prohibited, due to the danger of fire and explosion. Chlorine dioxide does not require air for it to burn
and can cause coughing, wheezing, and respiratory distress. At very high exposure levels, it can be fatal. Rec-
ords from Eco Shield, LLC indicated that 1,744 Air Doctor Portables were shipped via the USPS to purchasers
across the United States between March 1, 2020, and April 18, 2020. At least 300 of those shipments oc-
curred after the defendants received notice that shipping by mail was unlawful.
The defendants imported the EcoAirDoctor badge from Japan, falsely describing it as air purifiers rather than
pesticides, which would have subjected the entry to inspection by the EPA. In addition to falsely describing
the nature of the goods, the entry documents undervalued the shipment by over $500,000, allowing the de-
fendants to evade $33,919 in Customs duties. The sentence imposed required the defendants to pay restitu-
tion of $86,754 to U.S. Customs to cover the loss of duty and the cost of disposing of seized EcoAirDoctor
badges.
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EPA Bulletin: July—August 2022
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Sentencings
The defendants profited handsomely from the sale of the illegally-imported pesticides. At the outset of the
pandemic, the badges, purchased for $6.25 each, were then sold to the public in the United States for $20.95
each, plus shipping. During the first six months of 2020, the defendants pocketed $1,132,950 from the sale of
the badges, including sales occurring outside the United States. The Federal Trade Commission issued a
warning letter, on April 27, 2020, advising the company not to make unsubstantiated claims for Coronavirus
protection, and on July 24, 2020, the EPA issued a Stop, Sale, Use or Removal Order. The sentence requires
the defendants to forfeit $427,689 in proceeds from the sale of the badges within the United States.
"This product not only didn't work, but it was even potentially harmful," said U.S. Attorney Randy Grossman.
"The defendant and his company will be held to account for cashing in on Covid fears during a global pan-
demic." Grossman thanked the prosecution team and investigating agencies for their excellent work on this
case.
"The defendants knowingly persisted in their false assertions that their product provided protection against
COVID-19," said Special Agent in Charge Scot Adair of EPA's Criminal Investigation program in California. "EPA
and its law enforcement partners are committed to holding responsible parties accountable for putting peo-
ple's health at risk."
"Homeland Security Investigations (HSI) along with our government partners are committed to protecting the
American public against criminal networks attempting to illegally import and sell products that could endan-
ger lives of U.S. consumers for financial gain," said HSI San Diego Special Agent in Charge Chad Plantz. "We
remain vigilant and will use our broad legal authorities to disrupt and dismantle criminal networks seeking to
exploit and benefit from the COVID-19 pandemic."
"Postal Inspectors remain vigilant in protecting the US Postal Service and the communities we serve. Pre-
venting the dangerous misuse of the nation's mail system remains one of our top priorities," stated Inspector
in Charge Carroll N Harris.
This case was investigated by EPA's Criminal Investigation Division, Homeland Security Investigations, the Cal-
ifornia Department of Toxic Substances Control, Office of Criminal Investigations, and the U.S. Postal Inspec-
tion Service. Prosecution was handled by a DOJ litigation team.
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Page 9 EPA Bulletin: July—August 2022
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Sentencings
Wasatch Railroad Contractors and CEO Sentenced on Wire Fraud and Knowing Endanger-
ment Charges in Wyoming
On July 5, 2022, John Eldon Rimmasch and Wasatch Railroad Contractors ("Wasatch") appeared before a Fed-
eral District Court Judge for sentencing after a federal jury found them guilty on five counts of wire fraud and
one count of knowing endangerment for knowingly exposing employees to asbestos and placing them in im-
minent danger of death or serious bodily injury.
Headquartered in Cheyenne, Wyoming, Wasatch also operated a facility in Shoshoni, Wyoming. The company
performed repair and restoration on freight cars and its Wasatch Railroad Contractors division purported to
specialize in restoring historic railroad equipment. John Eldon Rimmasch is the founder and owner of Wa-
satch and served as its Chief Executive Officer.
This case arose after Wasatch and its owner, Rimmasch, entered a contract to restore a historic railcar owned
by the National Park Service. Wasatch failed to complete the restoration, and in the process, Rimmasch
knowingly placed 30 of his employees in imminent danger of death or serious bodily injury by exposing them
to asbestos without proper safety measures. Through directives of its owner, Rimmasch, Wasatch invoiced
the National Park Service certifying that it performed the asbestos abatement pursuant to the contract,
knowing full well it had not.
At the sentencing hearing, Judge Johnson found that
John Rimmasch attempted to obstruct justice by pre-
senting a fraudulent exhibit at the jury trial and abused
his position of trust during the commission of the
crimes. Rimmasch was sentenced to a term of imprison-
ment of 30 months and three years of supervised re-
lease on each count to run concurrently. Rimmasch was
also ordered to pay restitution in the amount of $7,428
and a special assessment of $600. Wasatch Railroad
Contractors, now defunct, was ordered to pay a special
assessment of $2,400.00.
"Our office will vigorously prosecute those who commit environmental crimes or engage in fraud against the
government," said Acting U.S. Attorney Vassallo. "We appreciate the excellent investigative work performed
in this case by the United States Department of the Interior, Office of the Inspector General and the United
States Environmental Protection Agency."
"The Department of the Interior Office of Inspector General will continue to aggressively root out attempts to
defraud the U.S. government and taxpayers," said Jamie DePaepe, Special Agent in Charge, Department of
the Interior, Office of Inspector General's Western Region. "We hope the sentencing wili serve as a deterrent
to others contemplating stealing federal funds for their own personal gain, as well as to those who would
knowingly risk the lives and health of others in furtherance of their fraudulent scheme."
The crimes were investigated by the United States Department of the Interior, Office of the Inspector Gen-
eral, and EPA's Criminal Investigation Division. Prosecution was handled by a DOJ litigation team.
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Page 10 EPA Bulletin: July—August 2022
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Plea Agreements
DEM Technology, LLC and Corporate Vice President Plead Guilty to Selling Unregistered Vir-
ucide, Despite Repeated Warnings in Ohio
Ohio-based DEM Technology, LLC and its vice president pleaded guilty in federal court on August 4, 2022, to
the illegal sale of antimicrobial products.
Evan Morgan and DEM Technology LLC of Dayton, Ohio, pleaded guilty to selling an unregistered "fogger,"
which they claimed, without proof, could sanitize an entire room. According to the plea, beginning in 1996,
DEM produced the surface-sanitizing product, SaniGuard. It was only authorized for use as a surface spray.
However, since SaniGuard's initial EPA registration, DEM has sold the product not only as a "Dry Sanitizing
Surface Spray" but also as a "Total Release Fogger." According to its marketing materials, the fogger product
allowed for the entire can's contents to be released into a room, supposedly disinfecting all surfaces in the
room. It also claimed the fogger could "sanitize a room within 10 to 15 minutes"; is "effective against H1N1, E
-Coli, Staphylococcus, MRSA and Salmonella"; and has a "99.99% kill rate of fungus, bacteria...and viruses."
DEM has never established efficacy nor safety data associated with SaniGuard's use as a fogger as required
by the Federal Insecticide, Fungicide and Rodenticide Act.
From 2004 to 2015,
DEM received and
acknowledged repeat-
ed correspondence
from the EPA, di-
recting the removal of
language relating to
fogging from the
SaniGuard label. Addi-
tionally, on July 21,
2015, the EPA entered
a consent order, which ordered DEM to pay a civil penalty based upon DEM's sale of the fogger product.
Nonetheless, DEM continued to produce and sell Total Release Fogger in 2015, 2016, 2017 and 2018.
"The defendants in this case made claims about the efficacy of their product with no supporting data, putting
their customers at risk," said Assistant Attorney General Kim. "Despite this danger and repeated notices by
EPA, the defendants continued their unlawful conduct for years. The guilty pleas shows that the Department
of Justice will not tolerate such violations of federal law."
"In order to safeguard the environment, it is essential that the Environmental Protection Agency's pesticide
programs receive accurate and honest information from pesticide registrants and their employees," said Spe-
cial Agent in Charge Lynn. "This guilty plea sends a clear message that EPA and its law enforcement partners
will continue to hold individuals and companies fully accountable for illegal conduct that jeopardizes the en-
vironment."
This case was investigated by EPA's Criminal Investigation Division and the Ohio Attorney General's Office Bu-
reau of Criminal Investigation. Prosecution is being handled by DOJ.
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Page 11
EPA Bulletin: July—August 2022
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Plea Agreements
Project Manager Pleads Guilty to False Statements Regarding Lead Contamination at City
Park in Missouri
On July 28, 2022, Lynn Eich pleaded guilty in federal court to misleading federal authorities about lead con-
tamination in a Gran by, Missouri city park after he was hired to conduct remediation at the site.
"This defendant was responsible for cleaning up the contaminated soil at Granby City Park, but he deliberate-
ly made false statements and provided false information about the dangerous level of lead contamination
that continued to threaten the health and safety of the community," said U.S. Attorney Teresa Moore. "This
unconscionable deceit cost taxpayers hundreds of thousands of dollars to correct, which we intend to recoup
through fines or restitution."
"The Environmental Protection Agency Office of Inspector General is committed to providing strong oversight
for grants and contracts," said Special Agent in Charge Garrett J. Westfall of the EPA OIG's Western Division
Field Office. "Recipients will be held accountable for ensuring that they use taxpayer funds in accordance
with federal regulations and to support the health and safety of communities. In this case, a guilty plea by a
formerly trusted contractor serves to help restore confi-
dence in the EPA health and environmental programs the
people of Newton County, Mo., deserve. The EPA OIG
thanks our law enforcement and prosecutorial partners for
their dedication to this investigation."
"The guilty plea highlights the Department of Defense,
Office of Inspector General, Defense Criminal Investigative
Service's commitment to protect the integrity of the DoD
procurement process," said Michael Mentavlos, Special
Agent in Charge, DCIS Southwest Field Office. "DOS, in
concert with our federal law enforcement and prosecutori-
al partners, stand united in ensuring the safety and wel-
fare of our communities."
"The defendant intentionally provided false information to regulators regarding lead contamination in the
Granby community," said Special Agent in Charge Lance Ehrig of EPA's criminal enforcement program in Mis-
souri. "The guilty plea demonstrates that EPA and our law enforcement partners are committed to holding
accountable individuals who choose to violate the law."
Eich waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Beth Phillips to a fed-
eral information that charges him with one count of making a false statement relating to a federal environ-
mental remediation contract.
Eich was employed by Environmental Quality Management as the project manager for a soil remediation pro-
ject in Newton County, Mo. The remediation company was awarded a contract from the U.S. Army Corps of
Engineers and the Environmental Protection Agency, which ultimately totaled nearly $12 million, to perform
mine waste remediation at the Newton County Mine Waste Remediation Superfund Site in and around Gran-
by. This area had been previously contaminated with lead in the surface soil deposited through historical
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EPA Bulletin: July—August 2022
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Plea Agreements
mining and smelting operations in the area. The contract required the removal of contaminated soil and
backfilling some areas, including Granby City Park, using clean fill material.
Approximately one month before being awarded the contract for the Newton County project, the remedia-
tion company was also awarded an EPA contract in Oronogo, Mo., to complete a similar but larger soil reme-
diation project. The receipt of both contracts was not expected and caused Eich to request a personnel
change to the Newton County project's Quality Assurance, Quality Control (QAQC) Manager in order to com-
plete both contracts. Eich represented to the Corps of Engineers that the replacement for the QAQC Manager
had comparable experience as the person listed on the original application and that the replacement was
qualified to fulfill the duties of a QAQC Manager on the Newton County project. In fact, the replacement
QAQC Manager was not qualified and had little to no experience testing soil for hazardous materials.
Between Sept. 12 and Oct. 19, 2016, the QAQC Manager failed to properly test fill material that was used to
remediate Granby City Park.
On Oct. 14, 2016, the site superintendent, who reported to Eich, received laboratory analysis of two samples
taken from the offsite borrow source. One sample indicated lead levels of 640 mg/kg and the other indicated
a lead level of 720 mg/kg, both in excess of the contractual requirement of less than 100 mg/kg. The results
of these samples were not reported to the EPA or the Corps of Engineers as required by federal environmen-
tal laws.
On June 4, 2018, Eich called the Corps of Engineers and indicated that a "hot spot" had been detected in
Granby City Park. During the call, Eich misrepresented the scope of the area of contamination at the park by
stating that it was less than 1,000 cubic yards. Eich also submitted a map of Granby City Park that showed a
limited area of contamination when, as Eich knew, lead contamination was pervasive through the entire park.
By pleading guilty, Eich admitted that he intentionally made this false statement and provided false infor-
mation regarding the scope and amount of lead contamination at Granby City Park.
EPA then conducted its own sampling of Granby City Park, including additional sampling by the National En-
forcement Investigations Center, which found Granby City Park was still contaminated with lead in the soil.
EPA was required to hire another remediation contractor to conduct a removal project of Granby City Park.
The removal project required removal of the contaminated backfill and soil from the park to ensure the
health and safety of the community. The removal project was completed in June 2021, resulting in additional
costs to EPA.
Under federal statutes, Eich is subject to a sentence of up to five years in federal prison without parole and a
fine up to $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for in-
formational purposes, as the sentencing of the defendant will be determined by the court based on the advi-
sory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled for Jan. 18, 2023.
The case was investigated by EPA's Office of Inspector General and Criminal Investigation Division; DOD's
Office of Inspector General, Defense Criminal Investigative Service; and the Army Criminal Investigative Divi-
sion, Major Procurement Fraud Unit. Prosecution is being handled by a DOJ litigation team.
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EPA Bulletin: July—August 2022
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Plea Agreements
Electroplating Company, President, and Vice President Plead Guilty to Clean Water Act
Offenses in Michigan
ASP Plating Company, Gary Stephen Rowe, and Stephen Frederick Rowe pled guilty on August 15, 2022, to
criminal violations of the Clean Water Act. The company and Gary Rowe, its president, pied guilty to a felony
violation of the Clean Water Act, and Stephen Rowe, its vice president, pled guilty to a misdemeanor. The
Court will set one or more dates for sentencing hearings.
According to public records, the individual defendants operated the corporate defendant, an electroplating
company that held an industrial pretreatment permit issued by the Grand Haven-Spring Lake Sewer Authori-
ty. At least between 2015 and 2021, the company routinely violated
the permit by dumping zinc in excess of the daily and monthly limita-
tions, by releasing zinc in batches without notice, and by bypassing
the mandatory pretreatment system entirely. The Sewer Authority
periodically monitored the company's discharges, but Gary and Ste-
phen Rowe instructed employees to make sure the monitor was ab-
sent before discharging wastewater containing excessive amounts of
zinc.
"No resource is more precious in Michigan than our waters, which
define the very boundaries of our state," said U.S. Attorney
Totten. "These defendants blatantly and repeatedly thwarted their obligation to properly treat and dispose
of wastewater. As U.S. Attorney, I will do everything I can to protect our water. Individuals and businesses
that commit environmental crimes will be held accountable."
EPA's Criminal Investigation Division conducted the investigation and prosecution is being handled by DOJ.
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Plea Agreements
Co-Owner of Gold Coast Commodities, Inc Pleads Guilty to Clean Water Act Violation in
Mississippi
The co-owner of Gold Coast Commodities, Inc., who serves as vice president of the Brandon, Mississippi-
based fat and oil recycling business, pled guilty on August 31, 2021, for his part in illegally discharging indus-
trial waste into the Jackson Sewer System.
During court, Robert David Douglas, 60, of Flowood, admitted authorizing payments on behalf of Gold Coast
for the transportation and disposal of its industrial waste at a commercial entity in Jackson, which as a result
of his negligence, caused the waste to be trucked and discharged to a facility which was not a legal discharge
point designated by the Jackson Wastewater Treatment System to receive the waste.
Sentencing is scheduled for November 9, 2022. A federal judge will determine any sentence after consider-
ing the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by EPA's Criminal Investigation Division, the FBI, the Brandon Police Department,
and the Mississippi Department of Environmental Quality, with cooperation from the City of Brandon and the
City of Jackson municipal governments. The case is being prosecuted by DOJ.
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Plea Agreements
Former South Florida Resident Convicted of Smuggling Illegal Refrigerant from China to U.S.
On July 12, 2022, Jorge Murrilio pled guilty in federal district court in Miami to conspiring to violate the Clean
Air Act (CAA) by importing over 300,000 kilograms of illegal hydrochlorofluorocarbon-22 (HCFC-22), worth
over $1.5 million, into the United States from China. HCFC-22 is a widely used refrigerant for residential heat
pump and air-conditioning systems.
The CAA regulates air pollutants, including ozone depleting substances such as HCFC-22. The CAA and its im-
plementing regulations established a schedule to phase out the production and importation of ozone de-
pleting substances, with a complete ban starting in 2030. To meet its obligations under an international trea-
ty to reduce its consumption of ozone depleting substances, the United States issued baseline consumption
allowances for the production and importation of HCFC-22 to individuals and companies. To legally import
HCFC-22, one must hold an unexpended consumption allowance.
According to court records and a Factual State-
ment filed in Court, Murrilio smuggled large
quantities of HCFC-22 into the United States to
sell on the black market. Murrilio and his co-
defendant would negotiate with a Chinese
manufacturer for the purchase of large quanti-
ties of HCFC-22 and then import them into
South Florida ports. At no point did Murrilio or
his companies or associates hold unexpended
consumption allowances that would have al-
lowed the legal importation of HCFC-
22. Between June and August 2007, Murrilio
conspired to, and otherwise smuggled, approx-
imately 309,536 kilograms of HCFC with a mar-
ket value of $1,525,670, into the U.S. Murrilio resided outside the United States from the time of his indict-
ment in 2012 until his arrest in Miami in May 2022.
Murrillo's co-defendant, Norberto Guada, was previously convicted, in 2012, of illegally importing HCFC-22,
and served a federal prison sentence. Murrillo's sentencing hearing was scheduled for September 20, 2022.
Murrilio faces up to five years in prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, Charles Carfagno, Special
Agent in Charge, U.S. Environmental Protection Agency (EPA), Criminal Investigation Division, Southeast Area
Branch and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field
Office, announced the conviction.
The case was investigated by EPA's Criminal Investigation Division and Homeland Security Investigations -
Miami with assistance from Customs and Border Protection. Prosecution is being handled by a DOJ litigation
team.
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Indictments/Information
Turkish Businessman Extradited from Austria to Face Money Laundering and Wire Fraud
Charges—Allegedly Connected to $1 Billion Washakie Biofuel Tax Credit Fraud
A Turkish businessman was extradited On July 15, 2022, from Austria to face money laundering, wire fraud
and obstruction charges.
Sezgin Baran Korkmaz arrived in Utah in the custody of the U.S. Marshals Service. Korkmaz was indicted in
Salt Lake City, Utah, with laundering more than $133 million in illegal proceeds through bank accounts he
controlled in Turkey and Luxembourg. According to an April 2021 superseding indictment, the proceeds re-
late to a scheme orchestrated in Plymouth, Utah, by Jacob Kingston, Isaiah Kingston and Levon Termen-
dzhyan to defraud the U.S. Treasury by filing false claims for more than $1 billion in tax credits allegedly for
the production and sale of biodiesel by their company, Washakie Renewable Energy LLC.
Korkmaz and his co-conspirators allegedly used the biofuel fraud proceeds to acquire luxury homes and as-
sets, as well as businesses such as Biofarma, the Turkish airline Borajet, a yacht named the Queen Anne, a
hotel in Turkey and a villa and apartment on the Bosporus river in Istanbul. In coordination with authorities in
Lebanon, the U.S. Marshals Service took the Queen Anne yacht into custody in July 2021 and sold it in early
2022 for $10.11 million pursuant to an October 2021 order of U.S. District Judge Jill Parrish of the U.S. District
Court for the District of Utah, who is presiding over the Korkmaz case. Other assets of Korkmaz-related com-
panies in Turkey and Europe are the subject of forfeiture claims by the United States and Turkey.
According to the superseding indictment, Korkmaz also devised a scheme to defraud Jacob Kingston and Isai-
ah Kingston in early 2018 by falsely representing he could provide them with protection, through unnamed
government officials, from a federal grand jury investigation and civil lawsuits. In exchange, the Kingstons
sent him $6 million over several months.
Additionally, Korkmaz allegedly made false statements to federal agents in an attempt to obstruct the pend-
ing criminal trial against Kingston and Termendzhyan. Among other misstatements, Korkmaz allegedly lied
about $38 million in wire transfers sent to a bank account controlled by Termendzhyan.
"The successful apprehension and extradition of Baran Korkmaz demonstrates the department's commit-
ment to working with our international partners to pursue, capture and return those who seek to defraud
the American people," said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice De-
partment's Tax Division. "Thanks to our law enforcement partners and their counterparts in Austria and Leb-
anon, we are now able to bring Korkmaz to trial on the pending charges, and have recovered significant for-
feiture proceeds."
"We commend our partners from the Tax Division and the Department of Justice for pursuing Sezgin Baran
Korkmaz on behalf of the American taxpayers and ensuring his return to Utah to face justice in U.S. District
Court," said U.S. Attorney Trina A. Higgins for the District of Utah. "We are also thankful for the efforts of our
foreign partners in Lebanon and Austria, and in particular, the Austrian Bundeskriminalamt Fugitive Active
Search Team, for locating Korkmaz overseas."
In July 2019 Jacob and Isaiah Kingston both pleaded guilty to federal charges, and in 2020 both men testified
at the trial of Levon Termendzhyan in Utah. The federal jury convicted Termendzhyan of all charges. The
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Indictments/Information
Kingstons and Termendzhyan all await sentencing.
If convicted, Korkmaz faces a maximum penalty of 20 years in prison for each count of money laundering
conspiracy, wire fraud, and obstruction of an official proceeding. A district court judge will determine any
sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-Criminal Investigation, the Environmental Protection Agency Criminal Investigation Division and the De-
partment of Defense DCIS are investigating the case.
The Justice Department's Office of International Affairs and FBI Legal Attache in Vienna, Austria played key
roles in securing the arrest and successful extradition of Korkmaz. Assistant U.S. Attorney Cy Castle for the
District of Utah, Senior Policy Advisor Darrin L. McCullough of the Criminal Division's Money Laundering and
Asset Recovery Section, and the U.S. Marshals Service provided significant assistance in the seizure of
the Queen Anne yacht and its subsequent sale.
Trial Attorney Richard Rolwing and Senior Litigation Counsel John Sullivan of the Tax Division are prosecuting
the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a
reasonable doubt in a court of law.
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Indictments/Information
Company Operating Aluminum Processing Facility in Oregon Charged with Clean Air Act Vi-
olations
On August 24, 2022, an Illinois-based company that operates an aluminum processing facility in The Dalles,
Oregon was charged with violating the Clean Air Act by negligently releasing a hazardous air pollutant from
its facility, endangering employees and nearby community members.
Hydro Extrusion USA (Hydro), a limited liability corporation based in Rosemont, Illinois, has been charged by
criminal information with negligent endangerment under the Clean Air Act.
"Enforcing emissions standards for hazardous air pollutants is critical to protecting the air we breathe and
ensuring companies play by the rules," said Ethan Knight, Chief of the Economic Crimes Unit for the U.S.
Attorney's Office. "We will vigorously prosecute any company that risks the health and safety of its workers
or our communities."
"Our nation's environmental laws are designed to protect our communities from hazardous pollutants," said
Special Agent in Charge Scot Adair of the Environmental Protection Agency's (EPA) criminal investigation pro-
gram in Oregon. "The criminal charge filed in this case demonstrates that companies that negligently violate
those laws will be held responsible for their crimes."
According to court documents, Hydro operates a secondary aluminum processing facility in The Dalles where
it melts aluminum scrap in induction furnaces to produce reusable aluminum billets. While operating, air
emissions from the company's furnaces were open to the interior of the building and did not pass through
any pollution control devices before reaching employees or being vented to ambient air.
Under the Clean Air Act, secondary aluminum production facilities are only permitted to use "clean charge,"
aluminum scrap free of paints, coatings or lubricants. Despite this requirement, from July 2018 through June
2019, Hydro acquired and melted scrap aluminum coated in a mineral-oil based mixture that, when combust-
ed, produced hazardous smoke. During this time, Hydro employees noticed excessive smoke in the facility.
Despite being notified by inspectors from EPA and the Oregon Department of Environmental Quality (Oregon
DEQ), Hydro continued melting the unclean charge.
Hydro has fully cooperated with the government's investigation of this matter and agreed to plead guilty.
This case was investigated by the EPA Criminal Investigation Division (EPA-CID) with assistance from Oregon
DEQ. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until
proven guilty.
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