Environmental Fraud

August 9, 2016

John Bennett, the former chief executive at Bennett Environmental Inc., a Canada-based company that treats and disposes of contaminated soil, was sentenced to serve 63 months in prison and pay roughly $3.8 million in restitution in connection with the payment of kickbacks to obtain subcontracts at a New Jersey Superfund site overseen by the EPA and Army Corps of Engineers.  According to court documents, Bennett conspired with others at Bennett Environmental to pay kickbacks, that included money wired to a co-conspirator’s shell company, lavish trips and entertainment expenses and personal gifts in an effort to guarantee the award of soil treatment contracts to his company.  As a result, Bennett Environmental was fraudulently awarded tens of millions of dollars in soil treatment and disposal contracts and the company won contracts at higher prices than it otherwise would have bid.  DOJ

July 29, 2016

Honeywell International Inc. and Georgia Power Company have agreed to pay an estimated $28.6 million to clean up the 760-acre saltwater marsh at the LCP Chemicals Superfund Site in Brunswick, Georgia.  Between 1919 and 1994, the LCP Chemicals site hosted a petroleum refinery, an electric power generation facility and various manufacturing operations which led to widespread contamination of the site’s soil, groundwater, surface water and sediment with mercury, polychlorinated biphenyls (PCBs) and other hazardous substances.  The site was placed on the federal Superfund list in 1996.  DOJ

July 27, 2016

Cement manufacturer Cemex Inc. will invest approximately $10 million to cut emissions of harmful air pollution at five of its cement manufacturing plants in Alabama, Kentucky, Tennessee and Texas to resolve alleged violations of the Clean Air Act.  It will also pay a $1.69 million civil penalty, conduct energy audits at the five plants, and spend $150,000 on energy efficiency projects to mitigate the effects of past excess emissions of nitrogen oxides (NOx) from its facilities.  DOJ

July 20, 2016

Enbridge Energy Limited Partnership and several related Enbridge companies agreed to pay $177 million to resolve claims stemming from its 2010 oil spills in Marshall, Michigan, and Romeoville, Illinois.  Enbridge has agreed to spend at least $110 million to prevent spills and improve operations across nearly 2,000 miles of its pipeline system in the Great Lakes region.  Enbridge will also pay civil penalties totaling $62 million for Clean Water Act violations.  DOJ

July 8, 2016

Virginia announced that it has secured financial commitments of up to $12 million from Alpha Natural Resources for cleanup and reclamation of the former Twin Star mine in Buchanan County. The cleanup funds, which were secured as part of the federal bankruptcy proceedings of Alpha Natural Resources, will provide significant water quality and environmental benefits to Buchanan County and prevent taxpayers from having to fund cleanup, closure, and water quality improvement efforts at the former mine site. The Twin Star complex is the only Virginia mine still owned by Alpha, after the company sold off its other Virginia mines. VA

June 28, 2016

New York announced its participation in an interrelated series of partial settlements with Volkswagen AG and its Audi and Porsche affiliates arising from Volkswagen’s violations of emissions standards and state consumer protection laws. As part of the settlements, some of which are still subject to court approval, all owners of 2.0 liter, 4-cylinder engine VW and Audi diesel cars in New York will be entitled to be paid full, pre-scandal fair market value for their vehicle, in addition to a cash payment of at least $5,100. Under the deal, car owners may also choose to keep their vehicle and wait to see if VW and Audi develop acceptable emissions fixes; car owners who exercise this option will also receive a cash payment of at least $5,100. The settlements will also direct to New York over $115 million for environmental projects to improve New York’s air quality, as well as over $30 million in additional monetary recoveries for the state’s general fund. NY, FL, TX

June 28, 2016

In two related settlements, one with the United States and the State of California, and one with the FTC, German automaker Volkswagen AG and related entities have agreed to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers. Volkswagen will offer consumers a buyback and lease termination for nearly 500,000 model year 2009-2015 2.0 liter diesel vehicles sold or leased in the U.S., and spend up to $10.03 billion to compensate consumers under the program. In addition, the companies will spend $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology. FTC

April 22, 2016

OXY USA Inc., a subsidiary of Occidental Petroleum Company, agreed to spend an estimated $40 million to clean up contaminated water and sediments in the Ocoee River and one of its watersheds at the Copper Basin Mining District Superfund Site in Polk County, Tennessee.  In addition, OXY USA will reimburse EPA approximately $10.8 million toward costs incurred in its past cleanup actions at the site.  The company will also reimburse EPA and the state of Tennessee for costs incurred by those agencies in overseeing the work required by the settlement.  DOJ