Archive

December 16, 2016

Virginia announced that Southwest Virginia communities will enjoy cleaner water thanks to enhanced environmental protections agreed to as part of a settlement between Virginia, Alabama, Kentucky, Tennessee and the Southern Coal Corporation for the company’ s continued and systemic polluting of waterways in violation of state and federal laws. The Commonwealth of Virginia will receive $112,500 as part of a $900,000 civil penalty, and Southern Coal Corporation will commit to environmental improvement plans and facility upgrades to comply with the Clean Water Act and prevent any illegal discharge of pollutants into Southwest Virginia waterways. The company will also hire an independent auditor to monitor its compliance and will post all its discharge reports online so the public can know what is being discharged into their waterways and whether the company is fulfilling its obligations. VA

December 12, 2016

The FTC has granted summary decision against California Naturel, Inc., for falsely advertising its sunscreen product as “all natural” in violation of Sections 5 and 12 of the FTC Act. In its opinion, written by Chairwoman Edith Ramirez, the Commission states that the company promotes its “all natural” sunscreen on its website as containing “only the purest, most luxurious and effective ingredients found in nature.” But California Naturel admitted that eight percent of its sunscreen formula is in fact dimethicone, a synthetic ingredient. The Commission’s final order prohibits California Naturel from misrepresenting the ingredients or composition of its products; whether a product is “all natural” or “100% natural;” the extent to which a product contains any natural or synthetic ingredient or component; or the environmental or health benefits of such a product. It also requires the company to have competent and reliable evidence to support any of the four foregoing claims it makes about any of its products. FTC

November 30, 2016

–An Ohio man was sentenced to prison for stealing more than $2 million in timber from property owned by an elderly Grove City resident. Vinton County Common Pleas Judge Jeffrey Simmons sentenced Mark Betts, 53, of McArthur, to four years in prison. Betts was also ordered to pay $2,025,088 in restitution. Betts, the owner of Betts Logging, pleaded guilty last month to cutting the trees from the victim’s property without permission and stealing the timber between April 2007 and September 2010. An investigation conducted by the Attorney General’s Ohio Bureau of Criminal Investigation and the Vinton County Sheriff’s Office found that Betts harvested hundreds of acres of trees, valued by a forestry expert to be worth $2,025,088, from the victim’s property on Goose Creek Road and Dunkle Creek Road and then sold the timber to sawmills for more than $578,000. OH

November 21, 2016

The CFPB filed a federal lawsuit against Access Funding, LLC for its illegal scheme in which victims of lead-paint poisoning and others were deceived into signing away future settlement payments in exchange for a significantly lower lump-sum payout. Access Funding allegedly steered victims to receive “independent advice” from a sham advisor – an attorney paid directly by the company – who indicated to consumers that the transactions required little scrutiny. The CFPB seeks to put an end to the company’s unlawful practices, obtain relief for the harmed consumers, and impose penalties.  CFPB

November 17, 2016

California announced a $14 million settlement with BP West Coast Products LLC, BP Products North America, Inc., and Atlantic Richfield Company over allegations that the companies violated state laws regarding operating and maintaining motor vehicle fuel underground storage tank laws. The Attorney General’s office and several district attorneys across the state allege that BP failed to properly inspect and maintain underground tanks used to store gasoline for retail sale at approximately 780 gas stations in California over a period of 10 years and violated other hazardous material and hazardous waste laws. The complaint alleges that, since 2006, BP has improperly monitored, inspected, and maintained underground storage tanks used to store gasoline for retail sale; tampered with or disabled leak detection devices; and improperly handled and disposed of hazardous wastes and materials associated with the underground storage tanks at retail gas stations throughout California. CA

October 27, 2016

Pennsylvania and 33 other Attorneys General reached a $41.2 million settlement with the makers of Hyundai and Kia automobiles following allegations that the companies misrepresented mileage and fuel economy ratings. An investigation by the states showed the companies misrepresented mileage and fuel economy ratings on certain vehicles from 2011, 2012 and 2013. The companies also allegedly sought to capitalize on the erroneous mileage estimates by placing them prominently in a variety of advertisements and other promotional campaigns. These actions distorted facts that may have been substantial to consumers’ decisions to purchase particular vehicles during a time of high gasoline prices, the states’ investigation revealed. PA, NJ, MA, OH

October 21, 2016

Gallia Graeca Shipping Ltd. and Angelakos (Hellas) S.A., the companies that own and operate a Greek shipping vessel, were sentenced to a $1.3 million fine for the dumping of oily waste at sea.  In June, they were found guilty of violating the Act to Prevent Pollution from Ships, falsifying records in a federal investigation and engaging in a scheme to defraud the United States.  According to the evidence at trial, the defendants' cargo ship named the M/V Gallia Graeca travelled from China to Seattle with an inoperable pollution-control device and  discharged overboard approximately 5,000 gallons of oily bilge water.  The defendants then concealed it from the Coast Guard by making false statements to inspectors and making false statements and omissions in the ship’s oil record book.  DOJ

October 12, 2016

Fred Witmer and Gary Jury, the owners of Indiana biofuel producers Triton Energy LLC and Gen2 Renewable Diesel LLC, pleaded guilty to conspiracy, fraud and false statements for participating in a scheme that generated over $60 million in fraudulent tax credits and EPA renewable fuels credits at Triton.  Although the credits required that the fuel be used domestically for transportation, Witmer admitted selling it for uses that included the production of fire starter logs and asphalt and also for power generation.  As part of their pleas, Witmer and Jury agreed to serve a sentence of 57 months and 30 months, respectively.  DOJ

October 12, 2016

Four Texas companies pleaded guilty and agreed to pay a total of $3.5 million for criminal violations of the Clean Air Act at two oil and chemical processing facilities in Texas.  KTX Limited and KTX Properties Inc. negligently released hazardous air pollutants after a tank explosion at their chemical and petroleum processing facility, which killed one worker at the plant and severely injured two others.  And Crosby LP and Ramsey Properties LP failed to monitor leaks of ground-level ozone (smog) producing air pollutants at their chemical processing facility.  They also admitted that they falsified records and reports to EPA and the Texas Commission of Environmental Quality certifying the facility was complying with the permit requirements.  DOJ

October 6, 2016

Detroit Diesel Corporation agreed to pay a $14 million penalty to resolve alleged violations of the Clean Air Act for selling heavy-duty diesel engines that were not certified by EPA and did not meet applicable emission standards.   Detroit Diesel also agreed to spend $14.5 million on projects to reduce nitrogen oxide and other pollutants, including replacing high-polluting diesel school buses and locomotive engines with models that meet current emissions standards.  DOJ