Environmental Fraud

May 11, 2015

Tonawanda Coke Corp. agreed to pay $2.75 million in civil penalties, $7.9 million to reduce air pollution and enhance air and water quality and $1.3 million for environmental projects in the area of Tonawanda, New York.  The settlement stems from the company’s violations of the Clean Air Act which resulted in releases of coke oven gas, which contains benzene and other harmful chemicals.  Tonawanda failed to install air pollution controls on its coke ovens, failed to properly monitor equipment for coke oven gas leaks, failed to conduct required annual maintenance inspections of emission controls and proper operations and maintenance and failed to complete multiple required reports among other violations.  DOJ

April 29, 2015

Chad, Chris and Craig Ducey pleaded guilty for their role in a multi-state scheme to defraud biodiesel buyers by fraudulently selling biodiesel incentives.  The Ducey brothers operated E-biofuels LLC and they sold over 35 million gallons of biodiesel to customers for more than $145 million by falsely claiming the fuel was eligible for federal renewable energy incentives, when they knew it was not.  In addition, Craig Ducey pleaded guilty to a related $58.9 million securities fraud, which victimized over 625 investors and shareholders of Imperial Petroleum, the publicly-traded parent company of E-biofuels.  DOJ

April 22, 2015

ExxonMobil Pipeline Company and Mobil Pipe Line Company agreed to pay $5 million in penalties, including the funding of an environmental project, and implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from a 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas.  DOJ

April 15, 2015

Joseph Furando, together with his two New Jersey companies Caravan Trading Company and CIMA Green, pleaded guilty for their parts in an Indiana-centered scheme to defraud biodiesel buyers and US taxpayers by fraudulently selling biodiesel incentives in connection with tax credits offered under the Energy Independence and Security Act designed to encourage use of renewable fuel sources.  DOJ

March 24, 2015

MTU America Inc., a subsidiary of Rolls-Royce Power Systems AG, agreed to pay a $1.2 million penalty to settle charges it violated the Clean Air Act by failing to ensure its compliance with federal emission standards for its heavy-duty diesel non-road engines used in mining, marine and power generation vehicles and equipment.  DOJ

March 6, 2015

Italian shipping company Carbofin S.p.A. (which owns and operates the M/T Marigola) was sentenced to pay an overall criminal penalty of $2.75 million for knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS).  During 2013 and 2014, on numerous international voyages, senior members of the crew of the M/T Marigola directed the installation and use of a so-called “magic hose” to dispose of sludge, waste oil and oil-contaminated bilge water directly into the sea bypassing required pollution prevention equipment.  US Coast Guard inspectors learned of the violations from two junior engineering crew members of the ship.  DOJ March

January 30, 2015

The Hachiuma Steamship Co. pleaded guilty to violating the Act to Prevent Pollution from Ships arising from the illegal disposal of oil residue and bilge water overboard the cargo vessel M/V Selene Leader. The company was ordered to pay $1.8M and placed on probation for three years during which it is to develop an environmental compliance program. $250,000 of the payment was awarded to a whistleblower on board the M/V Selene Leader who alerted the Coast Guard about the illegal activities. DOJ

January 23, 2015

A historic $5.15B settlement reached with Anadarko Petroleum Corp. andKerr McGee went into effect, allowing funds to be disbursed for cleanups across the country. It is the largest payment for the clean-up of environmental contamination ever obtained by the DOJ. According to Assistant Attorney General John C. Cruden for the DOJ’s Environment and Natural Resources Division, the recovery “will lead to cleanups across the country that will undo lasting damage to the environment, including contamination of tribal lands, by Kerr-McGee’s businesses.”DOJ

January 14, 2015

Florida-based auction house Elite Estate Buyers Inc. (doing business as Elite Decorative Arts) and the company’s president and owner, Christopher Hayes, pleaded guilty to an illegal wildlife trafficking and smuggling conspiracy in which the auction house sold rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the US to China. Hayes and Elite admitted to helping smugglers traffic in endangered and protected species and falsifying records and shipping documents to avoid the scrutiny of the US Fish and Wildlife Service and US Customs and Border Protection. DOJ

January 13, 2015

The DOJ and EPA announced a proposed settlement with Pechiney Plastic Packaging Inc. (Pechiney), Albéa Americas Inc., Bristol-Myers Squibb Company, Citigroup Inc., and Rexam Beverage Can Company regarding the cleanup of the Pohatcong Valley Groundwater Contamination Superfund Site in New Jersey. Under the proposed settlement, Pechiney will have primary responsibility for cleaning up contaminated soil and groundwater at the site. In addition, EPA will receive approximately $29.5M for certain past costs. Pechiney will also perform current and future cleanup work estimated to cost $62.5M. DOJ