A man in Colorado who was part of a tax fraud scheme involving renewable fuel credits has been sentenced to nearly 7 years in prison and ordered to pay $7.2 million in restitution. Along with co-conspirators, Matthew Taylor created a fake company, Shintan Inc., that they then used to seek out and obtain over $7.2 million in tax credits for renewable fuel that Shintan never actually produced. The fraud ran from 2010 to 2013 and personally netted Taylor about $4.5 million. DOJ
Mining company Atlantic Richfield agreed to undertake or finance $150 million in cleanup of mining-related contamination as part of the Butte Priority Soils Operable Unit consent decree, subject to court approval. DOJ
Apparel manufacturer Wolverine Worldwide, Inc., has reached a $69.5 million settlement with Michigan and local entities in the state to resolve claims that company operations polluted residential drinking wells with PFAS. Wolverine has agreed to pay to extend municipal water to more than 1,000 properties, conduct groundwater investigations to monitor contamination, and undertake other monitoring and response activities. MI
Kohler Co. agreed to pay a $20 million civil penalty and retire unlawfully generated emissions credits to resolve claims that it manufactured and sold "small SI" engines used in mowers, landscaping equipment, and generators, that incorporated emissions "defeat devices" designed to cheat emissions testing standards. Kohler admitted that it falsely certified its test procedures, failed to make required adjustments to testing, failed to properly disclose the functioning of its emission control devices, and failed to comply with testing requirements. EPA/DOJ/CA
Between Greta Thunberg's "Climate Strike" mass protests, the on-going saga over the Dakota Access Pipeline, the hoopla over plant-based diets, and record temperatures and ice melts – the environment was on everyone's mind in 2019. Whistleblowers can be eligible for financial rewards for reporting environmental violations in a number of different ways, and our review below features many recoveries – including...
Question of the Week: How Badly do you Want to Stop Animal Trafficking?
Last week, the Department of Justice indicted a New York man, Christopher Casacci, for illegally importing and selling dozens of African wild cats. Doing business as “ExoticCubs.com,” Casacci brought into the United States and sold dozens of caracals (Caracal caracal) and servals (Leptailurus serval). Caracals, known as the “desert lynx,” are wild cats native to Africa, and grow to approximately 45 pounds....
Punch It Performance and Tuning, together with related entities and individuals, has agreed to stop manufacturing and selling aftermarket emissions defeat devices, and pay a civil penalty of $850,000. The products sold by Punch It included hardware and software designed to hack into and reprogram a motor vehicle’s electronic control module to alter engine performance and enable the removal of filters, catalysts and other critical emissions controls that reduce air pollution. Such products are illegal under the Clean Air Act. USAO MD FL
Blowing the Whistle on Environmental Abuse: Investigation of Kanto Kosan for Wastewater Dumping at Naval Bases in Japan
Earlier this week, the Naval Criminal Investigative Service, the U.S. Navy’s law enforcement arm, announced that it was investigating contractor Kanto Kosan for allegedly dumping wastewater from warships at harbors in Navy bases in Japan. The investigation was triggered by a tip submitted to Japanese Customs. The FBI and Department of Justice have also joined the investigation.
According to the Wall Street...
Nederland Shipping Company and Chartworld Shipping Company, the Liberia-incorporated owners and operators of a the cargo ship M/V NEDERLAND REEFER, have agreed to pay $1.8 million for violating the Act to Prevent Pollution from Ships (APPS). During a Coast Guard inspection of the ship at a port in Delaware, inspectors found that chief engineer Vasileios Mazarakis was routinely tricking an oil content monitoring device into discharging oily water at sea before it could be processed by an Oily Water Separator (OWS), then falsifying the ship’s Oil Record Book (ORB). Mazarakis eventually plead guilty to falsifying the ORB as well as obstructing the Coast Guard’s investigation. The companies will be placed on a four-year probation period to ensure that company ships entering U.S. waters comply with applicable maritime laws. The APPS has a whistleblower reward provisions that incentivizes the reporting of this sort of illegal activity. DOJ
Charles Jansky and his companies Somont Oil Company and Ferdig Oil Company will pay $137,500 to resolve alleged violations of the False Claims Act arising from the underpayment of royalties allegedly owing for the pumping of natural gas from federal leases in Montana held by Somont. In reporting gas produced, Somont failed to disclose the relationship between Somont, Ferdig, and Jansky. USAO MT