EPA's CRIMINAL INVESTIGATION DIVISION

EPA’s CRIMINAL INVESTIGATION DIVISION TARA DONN SPECIAL AGENT, DENVER AREA OFFICE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

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Introduction Title 18 United States Code Sec. 3063 specifically authorizes EPA-CID Special Agents to:  Carry firearms,  Execute any warrants,  Make arrests for – any offense against the United States committed in the agent’s presence, – Felony offenses with probable cause 2 USEPA-CID ENVIRONMENTAL CRIMES

EPA Criminal Investigation Division  

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~ 200 Special Agents nationwide In each EPA Region is a CID Area Office (AO) supervised by a Special Agent in Charge (SAC) and Assistant Special Agent in Charge (ASAC) 47 Field Offices (incl. 10 Area Offices) in 38 states

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Office of Criminal Enforcement Forensics and Training (OCEFT)

National Enforcement Investigations Center (NEIC)

Criminal Investigation Division (CID)

Legal Counsel Division (LCD)

Homeland Security Division (HSD)

AREA OFFICES (AO) Training Branch

Investigations Branch

Operations Branch

Boston New York Philadelphia Atlanta Chicago

National Computer Forensics Laboratory (NCFL)

Field Investigations Team

Center for Strategic Environmental Enforcement (CSEE)

Dallas Kansas City Denver San Francisco Seattle

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BOSTON (R1) – New Haven, CT

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NEW YORK (R2) – Syracuse, NY – Trenton, NJ – San Juan, PR PHILADELPHIA (R3) – Herndon, VA RO – Baltimore, MD RO – Charleston, WV ATLANTA (R4) – Nashville, TN – Louisville, KY – Charlotte, NC – Knoxville, TN – Jackson, MS – Miami, FL – Tampa, FL – Gulf Breeze, FL

CHICAGO (R5) – Minneapolis, MN – Indianapolis, IN – Cleveland, OH – Detroit, MI

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DALLAS (R6) – Baton Rouge, LA – Houston, TX

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KANSAS CITY (R7) – St. Louis, MO

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DENVER (R8) – Helena, MT – Salt Lake City, UT

EPA CID Area & Resident Offices

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SAN FRANCISCO (R9) – Sacramento, CA – Honolulu, HI – Los Angeles, CA – Phoenix, AZ – San Diego, CA

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SEATTLE (R10) – Anchorage, AK – Portland, OR – Boise, ID

EPA’s CRIMINAL INVESTIGATION DIVISION

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Criminal Case Pipeline Leads

Investigations

Prosecutions

 In FY 2010, CID opened 1824 leads

 About 19% (348) were opened as investigations; the remainder were closed or referred  About 60% (208) of cases opened were prosecuted with indictment 7 USEPA-CID ENVIRONMENTAL CRIMES

CID Investigative Portfolio Distribution of Open Cases by Media

9%

22%

21%

1% 2% 1% 1%

29% 14%

Air Water Hazardous Waste SDWA CERCLA Pesticide TSCA Other Environmental General Crimes

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Criminal Enforcement Results FY 2010 Incarceration:  Fines (approx):  Restitution:  Probation: 

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72 Years $35,355,411 $5,279,176 461 Years

Currently 784 open cases nationwide

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Investigative Discretion Criteria 1. 2. 3.

4. 5.

Harm Threat of Significant Harm Failure to Report Illegal Conduct Represents a Trend or Common Attitude History of Repeated Violations

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Investigative Discretion Criteria 5. 6. 7.

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Deliberate Misconduct Resulting in Violation Concealment of Misconduct or Falsification of Records Tampering with Monitoring or Control Equipment Business Operating Pollution Related Activities Without a Permit, License, Manifest 11

USEPA-CID ENVIRONMENTAL CRIMES

ENVIRONMENTAL LAW ENFORCEMENT

Environmental investigations typically include Title 18 offenses as well as environmental statutes:  False Statements (18 USC 1001)  Mail Fraud (18 USC 1341)  Wire Fraud (18 USC 1343)  Conspiracy (18 USC 371)  Obstruction of Justice (18 USC 1501 –1517) 

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INVESTIGATION OF ASBESTOS CRIMES

CAA – Criminal Statutes 42 U.S.C. 7413 (c)(1) – Any person who knowingly violates any requirement or provision of NESHAP shall be punished by a fine pursuant to Title 18, or imprisonment not to exceed five (5) years, or both (doubled for second conviction). 42 U.S.C. 7413 (c)(2) – Any person who knowingly - (A) makes any false statement or knowingly alters, conceals or fails to file or maintain any document required, (B) fails to notify or report as required, shall be punished by a fine pursuant to Title 18, or by imprisonment not more than two (2) years, or both (doubled for second conviction).

Elements of a NESHAP Violation The defendant, who is an owner or operator of, a renovations or demolition project involving a facility, in which the combined amount of RACM stripped or removed is at least 260 linear feet on pipes, 160 square feet on facility components, or 1 cubic meter. And who knowingly fails or causes another person or employee to fail to comply with the work practice standards.

Criminal Investigations Potential Subjects of Asbestos Investigations  Asbestos Abatement Companies  Analytical Laboratories  Real Estate Development Companies  Property Owners  Asbestos Training Facilities/Trainers/Trainees  Air Monitoring Firms

Motive and Opportunity Motive - $$$ Opportunity  

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Work is primarily done in unoccupied buildings. Entry into work area is restricted. Work area is covered with polyethylene making it invisible from outside. Very few inspectors to monitor many projects. Uneducated workers may be taken advantage of. Health effects take many years to become evident.

Common Types of Illegal Activity    

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No notification to State and/or Federal Agencies. Untrained/Uncertified Workers. Failure to Use Engineering Controls. Dry removal. Failure to Properly Transport and/or Dispose. False Air Monitoring Reports. False Inspection Reports. False Analytical Results. False Training Certificates.

ASBESTOS Criminal Case Overviews

USEPA-CID ENVIRONMENTAL CRIMES

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TALON ENVIRONMENTAL Environmental consulting firm, asbestos abatement company  James Soyars, defendant  Stored asbestos waste in public storage units & stopped paying for the units  Abandoned ACM  Denver, CO 

USEPA-CID ENVIRONMENTAL CRIMES

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ARREST & SENTENCING Indicted February 10, 2010 by federal grand jury  Arrested February 17, 2010 in Texas  Pleaded guilty October 27, 2010  2 counts failure to deposit ACM at a regulated waste disposal site  Sentenced February 8, 2011  6 months incarceration, 6 months home detention, $435,477 restitution 

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UNNAMED ASBESTOS ABATEMENT COMPANY Unlawful storage of ACM  Stored approximately 1500 degrading bags of ACM outside  “Minor spill” as per CDPHE  Commerce City, CO  Charged by CDPHE 2011 

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IMS SAFETY, INC. Environmental Consultant, Middletown, NY  Provided “trained” Site Safety Representatives to provide safety oversight at NYC construction sites  Fraudulent OSHA and NYSDOL Asbestos training certificates provided to NYCDEP in order to secure $MM contracts  Conspiracy, mail fraud, wire fraud, false statements 

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DEFENDANTS/SENTENCING IMS President, Joseph Mazzurco: 3 years incarceration  IMS Vice-President John Meyer: 2 years incarceration  IMS Vice-President Christopher Rotante: 1 year incarceration  Joint restitution $1,117,765  Joint fine $1,035,000 

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SAF ENVIRONMENTAL President Saverio Todaro  Queens, NY  NYS & NYC Licensed Asbestos Inspector  NYS Licensed Asbestos Air Monitor  EPA Licensed Lead Investigator  For approx. 10 years, created thousands of fraudulent laboratory bulk asbestos sampling reports, asbestos air monitoring reports, and lead dust wipe sampling reports, in all 5 boroughs of NYC 

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ARREST Arrested March 26, 2010 in Manhattan  Pleaded guilty to 11-count felony information, including false statements and mail fraud relating to fraudulent lab reports for asbestos air monitoring, asbestos inspections, and lead sample clearance testing, and TSCA violations and false statements relating to work practice standards for lead testing and lead reports of analysis 

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SENTENCING Sentenced December 21, 2010 in Manhattan  63 months incarceration – “the maximum”  $304,395 forfeiture  $107, 194 restitution  $45,000 fine 

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Judge Kimba Wood: 

“Only your disabled son’s need for your care and your own failing health keep me from giving you a much, much harsher sentence than the advisory sentencing guidelines suggest for your crime.”

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“To reflect the seriousness of your crimes, your own callousness, to promote general deterrence and to provide adequate punishment…” 36

Tara Donn Special Agent U.S. EPA Criminal Investigation Division 1595 Wynkoop Street Denver, CO 80202 (303) 312-6938 [email protected]

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