Environmental Fraud

November 22, 2016

U. S. Steel Corporation agreed to resolve Clean Air Act litigation initiated by the United States and the states of Indiana, Illinois and Michigan by undertaking measures to reduce pollution at its three Midwest iron and steel manufacturing plants.  The company also agreed to pay a $2.2 million civil penalty.  DOJ

December 20, 2016

California announced an additional $66 million settlement with Volkswagen over the company’s use of “defeat device” software to bypass emissions controls in its Volkswagen, Audi and Porsche 3.0-liter diesel vehicles, in violation of California’s environmental laws. The settlement, in which California will receive $66 million to mitigate environmental harm, including $25 million to provide incentives for the purchase of zero emission vehicles, is part of a $225 million nationwide agreement, which the California Attorney General’s office negotiated alongside the California Air Resources Board, the U.S. Department of Justice, and the U.S. Environmental Protection Agency. This is the third partial settlement following a landmark $14.7 billion agreement with Volkswagen over defeat devices in its 2.0-liter diesel vehicles (of which $1.18 billion will flow to California) and a settlement California obtained from Volkswagen for $86 million in civil penalties. CA

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