Anderson, S.C., Woman Gets Prison for Extensive Bank Fraud Scam and Environmental Crime

From EPA:

FOR IMMEDIATE RELEASE
January 22, 2015

Anderson, S.C., Woman Gets Prison for Extensive Bank Fraud Scam and Environmental Crime

Nancy Stein operated American Screw and Rivet Corporation which was also sentenced

Contact: Davina Marraccini, 404-562-8293 (direct), 404-562-8400 (main), marraccini.davina@epa.gov

ATLANTA – United States Attorney Bill Nettles stated late yesterday that Nancy Marie Stein, age 62, of Anderson, South Carolina , was sentenced by Senior United States District Judge Henry M. Herlong in federal court in Greenville, to a total of 73 months in prison for six counts of violating Title 18, United States Code, Section 1344, commonly referred to as bank fraud; and 60 months for one count of violating Title 42, United States Code, Section 6928(d)(2)(A), for storing hazardous wastes without a permit. The sentences were ordered to run concurrently for a total sentence of 73 months. Stein was also ordered to pay restitution in the amount of $17,692,974. Stein’s Company, American Screw and Rivet Corporation (ASR) of Anderson, was placed on probation for 5 years and ordered also to pay restitution for its involvement in the bank fraud and storing hazardous wastes without a permit.

Both Stein and ASR entered pleas of guilty to the charges on December 16, 2013. The case had originally been set for sentencing on July 15, 2014, but was continued due to issues raised by Stein.

During the guilty plea hearing in December of 2013, the factual presentation revealed that had the cases had gone to trial, the Government would have presented evidence indicating that from at least 2004 and continuing until in 2011, while operating ASR, Stein developed a scheme to defraud a number of financial institutions. As part of the ruse, Stein created a number of fictitious manufacturing companies, organizations and business associations with apparent legitimate addresses, bank accounts and telephone numbers in various locations throughout the Southeast and the Midwest including Alabama, Georgia, Indiana, Ohio, and Pennsylvania. The addresses were mail drops, Stein controlled the accounts, and the telephone numbers were answering services. One of the fictitious entities was an accounting firm which issued audits and financial statements attesting to the fiscal soundness of ASR.

Stein would then apply to various financial institutions for loans for ASR. Often she would present to the institutions false invoices indicating that ASR had purchased types of specialized machinery from the fictitious vendors which could be used as collateral for loans. Often, Stein would have the financial institutions forward the loan proceeds to the non-existent vendors’ accounts. The deception also involved removing legitimate identity plates on existing machinery at the ASR location and replacing them with false plates reflecting the serial numbers of the fictitious machines.

After a number of years of running the scheme, Stein’s and ASR’s debts continued to grow, and ultimately, ASR’s creditors forced the company into involuntary bankruptcy in 2011. Thereafter, the United States Secret Service was asked to investigate. At least twenty six victim financial institutions were identified with cumulative losses in excess of $16 million. When the investigation focused on Stein, in a statement to the Secret Service, she admitted what she had done and took full responsibility for the fraud.

Resident Agent in Charge of the Greenville, S.C. Office of the United States Secret Service, Thomas M. Griffin, stated: “Today's sentencing was the result of a criminal investigation which was initiated in 2010. The Secret Service utilized significant resources conducting interviews, reviewing bank records and other documents associated with the fraudulent loans obtained by these defendants. These investigative efforts have ensured that the defendants would be successfully brought to justice for the crimes which they committed.”

With respect to the environmental crime violation, the Government was prepared to show that some years prior to the involuntary bankruptcy, Stein and ASR had been informed that they needed a permit from the South Carolina Department of Health and Environmental Control (DHEC) or from the United States Environmental Protection Agency (EPA) to store the large quantities of hazardous wastes generated by ASR’s manufacturing process. No permit to store hazardous waste was ever sought by Stein or ASR or issued by EPA or DHEC.

In June, 2011, as a result of a DHEC search of ASR’s property, a large quantity of hazardous waste was discovered on site. Thereafter, more than 24,000 gallons of waste were removed from the sight and disposed of by EPA at a cost of approximately $1,720,000.

“For a number of years, the defendants stockpiled thousands of gallons of unpermitted hazardous waste at ASR’s location in Anderson,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in South Carolina. “This waste consisted of uncontained flammable and highly corrosive materials which were exposed to the elements. Today’s sentencing shows that those who refuse to comply with the law, putting public health and the environment at risk, will face the consequences in court.”    

The cases were investigated by agents of the United States Secret Service and the EPA’s Criminal Investigation Division, and prosecuted by Assistant United States Attorney William C. Lucius of Greenville.

U.S. Navy Settles Hazardous Waste Violations at Facility in Virginia Beach, Va.

Press release:

U.S. Navy Settles Hazardous Waste Violations at Facility in

Virginia Beach, Va.

PHILADELPHIA (August 23, 2012) -- The U.S. Navy has agreed to pay a $32,800 civil penalty to settle alleged violations of hazardous waste regulations and underground storage tank (UST) regulations at the Joint Expeditionary Base Little Creek-Fort Story facility in Virginia Beach, Va. , the U.S. Environmental Protection Agency announced today.

EPA cited the U.S. Navy for violating the Resource Conservation and Recovery Act (RCRA), the federal law governing the treatment, storage, and disposal of hazardous waste. RCRA is designed to protect public health and the environment, and avoid costly cleanups, by requiring the safe, environmentally sound storage and disposal of hazardous waste. In addition, RCRA regulates underground storage tanks with the emphasis on preventing releases from USTs which can cause serious contamination to our nation's groundwater.

The U.S. Navy facility, which provides housing and training for the nation’s expeditionary forces, allegedly violated RCRA by failing to determine if the waste was hazardous; storing hazardous waste at the facility, failing to label containers with date and contents; failing to have functioning spill and over fill equipment for two USTs; and failing to notify the state when a new oil-containing UST was installed.

The settlement penalty reflects the Navy's compliance efforts, and its cooperation with EPA in the investigation and resolution of this matter. The facility has made significant improvements to come into compliance including the removal of an underground storage tank, providing personnel training and implementing better management practices. As part of the settlement, the U.S. Navy has neither admitted nor denied liability for the alleged violations, but has certified its compliance with applicable RCRA requirements.

Sentara Norfolk General Hospital Settles Hazardous Waste Violations

Contact: Donna Heron 215-814-5113 / heron.donna@epa.gov

 Sentara Norfolk General Hospital Settles Hazardous Waste Violations

PHILADELPHIA (May 1, 2012) -- Sentara Norfolk General Hospital has agreed to pay a $19,920 penalty to settle alleged violations of hazardous waste regulations at its medical facility, located at 600 Gresham Drive in Norfolk, Va., the U.S. Environmental Protection Agency announced today.

EPA cited Sentara for violating the Resource Conservation and Recovery Act (RCRA), the federal law governing the proper treatment, storage, and disposal of hazardous waste.

Following an inspection by EPA and the Virginia Department of Environmental Quality, EPA alleges Sentara failed to properly label and date containers of chemical waste. These RCRA requirements are preventative and ensure that public health and the environment are protected from potential cleanup situations if an incident occurs.

The $19,920 settlement penalty reflects the company's compliance efforts, and its cooperation with EPA in the investigation and resolution of this matter. As part of the settlement, Sentara has neither admitted nor denied liability for the alleged violations, but has certified its compliance with applicable RCRA requirements.

For more information about hazardous waste and RCRA, visit http://www.epa.gov/epawaste/hazard/index.htm.

News Release from EPA - Superfund & Brownfields

EPA Adds Nine Hazardous Waste Sites to Superfund’s National Priorities List, Proposing an Additional 10 Sites

WASHINGTON - The U.S. Environmental Protection Agency (EPA) is adding nine new hazardous waste sites that pose risks to people’s health and the environment to the National Priorities List (NPL) of Superfund sites, and is proposing to include 10 additional sites. Superfund is the federal program that investigates and cleans up the most complex, uncontrolled or abandoned hazardous waste sites in the country.

“Protecting human health and the environment and restoring contaminated properties to environmental and economic vitality are EPA priorities," said Mathy Stanislaus, assistant administrator for EPA’s Office of Solid Waste and Emergency Response. “When property is cleaned up and revitalized, the reuse may result in new income to the community in the form of taxes, jobs to local residents, increases to the values of properties nearby cleaned up sites, or it may provide recreational or other services to make the community a better place to live.”

Since 1983, 1,661 sites have been listed on the NPL. Of these sites, 359 sites have been cleaned up resulting in 1,302 sites currently on the NPL (including the nine sites added today). There are 62 proposed sites (including the 10 announced today) awaiting final agency action.

Contaminants found at the sites include arsenic, benzene, cadmium, chromium, copper, creosote, dichloroethene (DCE), lead, mercury, polynuclear aromatic hydrocarbons (PAHs), polychlorinated biphenyls (PCBs), tetrachloroethylene (PCE), pentachlorophenol (PCP), trichloroethane (TCA), trichloroethylene (TCE), toluene, uranium and zinc.

With all NPL sites, EPA works to identify companies or people responsible for the contamination at a site, and require them to conduct or pay for the cleanup. For the newly listed sites without viable potentially responsible parties, EPA will investigate the full extent of the contamination before starting significant cleanup at the site. Therefore, it may be several years before significant EPA clean up funding is required for these sites.

The following nine sites have been added to the National Priorities List:

•           Continental Cleaners (former dry cleaners) in Miami, Fla.;

•           Sauer Dump (inactive dump) in Dundalk, Md.;

•           Compass Plaza Well TCE (contaminated ground water plume) in Rogersville, Mo.;

•           Chemfax, Inc. (former manufacturer of synthetic resins and waxes) in Gulfport, Miss.;

•           Southeastern Wood Preserving (former wood treating operation) in Canton, Miss.;

•           CTS of Asheville, Inc. (former electronics components manufacturer) in Asheville, N.C.;

•           Eighteenmile Creek (contaminated creek) in Niagara County, N.Y.;

•           Metro Container Corporation (former drum recycler) in Trainer, Pa.; and

•           Corozal Well (contaminated ground water plume) in Corozal, Puerto Rico;

The following 10 sites have been proposed for addition to the National Priorities List:

•           Cedar Chemical Corporation (former chemical manufacturer) in West Helena, Ark.;

•           Fairfax St. Wood Treaters (former wood treating operation) in Jacksonville, Fla.;

•           Macon Naval Ordnance Plant (former ordnance manufacturer) in Macon, Ga.;

•           Bautsch-Gray Mine (former lead and zinc mine) in Galena, Ill.;

•           EVR-Wood Treating/Evangeline Refining Company (former wood treating operation) in Jennings, La.;

•           Holcomb Creosote Co (former wood treating operation) in Yadkinville, N.C.;

•           Orange Valley Regional Ground Water Contamination (contaminated ground water plume) in Orange/West Orange, N.J.;

•           Jackpile-Paguate Uranium Mine (former uranium mine) in Laguna Pueblo, N.M.;

•           West Troy Contaminated Aquifer (contaminated ground water plume) in Troy, Ohio; and

•           Circle Court Ground Water Plume (contaminated ground water plume) in Willow Park, Texas.

EPA is also withdrawing its earlier proposal to add the Arnold Engineering Development Center site in Coffee and Franklin Counties, Tennessee to the NPL. This site is being addressed under the Resource Conservation and Recovery Act (RCRA) program. Cleanup is progressing successfully, the migration of contaminated ground water is under control and measures have been taken that are protective of human health.

Federal Register notices and supporting documents for the final and proposed sites: http://www.epa.gov/superfund/sites/npl/current.htm

Information about how a site is listed on the NPL:

http://www.epa.gov/superfund/sites/npl/npl_hrs.htm

Superfund sites in local communities: http://www.epa.gov/superfund/sites/index.htm

News Release from EPA Region 7 - Cedar Valley Electroplating

U.S. Environmental Protection Agency, Region 7

901 N. Fifth St., Kansas City, KS 66101

Iowa, Kansas, Missouri, Nebraska, and Nine Tribal Nations

EPA Region 7 Orders Cedar Valley Electroplating in Cedar Falls, Iowa, to Take Immediate Action to Address Hazardous Wastes

Contact Information: Chris Whitley, 913-551-7394, whitley.christopher@epa.gov

Environmental News

FOR IMMEDIATE RELEASE

(Kansas City, Kan., March 9, 2012) - EPA Region 7 is ordering Cedar Valley Electroplating L.L.C., a metal electroplating business, to take a series of immediate actions to address multiple issues with leaking tanks and containers of hazardous waste at its facility in Cedar Falls, Iowa.

Under a unilateral administrative order issued by EPA in Kansas City, Kan., Cedar Valley Electroplating – and R Squared Properties, L.L.C., which owns the property at 5611 Westminster Drive in Cedar Falls where the business is located – are ordered to: 

• Immediately comply with the Resource Conservation and Recovery Act and its implementing regulations.
• Immediately identify and contain any leaking tanks, containers or other vessels on the property.
• Identify all solid and hazardous wastes currently being treated, stored or disposed at the facility.
• Restrict access to solid and hazardous wastes that have been stored and/or disposed at the facility and to areas on the property where hazardous material has been released.
• Develop a plan for the immediate cleanup of releases, an investigation to determine if wastes have migrated off the property, and the cleanup of the building and any surrounding areas that may have been contaminated by the releases. 

Cedar Valley Electroplating is located in an industrial park area of southwest Cedar Falls, approximately 700 feet southeast of a child care facility, approximately 1,000 feet east of a stream, and approximately 1,300 feet east and southwest of the nearest residences.

EPA’s order notes that the business, which ceased operating in 2011, was inspected by EPA representatives in September 2005 and again in September 2010. The 2005 inspection resulted in the business being cited for failure to make a hazardous waste determination on 28 55-gallon containers of waste material. The 2010 inspection cited those same issues, and issues with additional containers.

EPA representatives visited the facility again last week and noted numerous totes, tanks, drums and other containers and materials stored in an unsafe manner throughout the facility, including numerous containers that were open and several that were leaking. Some of the hazardous wastes identified during the limited visit included chromium, ferric sulfate, ferric chloride, sulfuric acid, hydrochloric acid, sodium hypochlorite and sodium hydroxide. During the visit, an EPA representative noted that the containers of chemicals cited in the 2005 and 2010 inspections were still present at the facility, but that some of the containers had since deteriorated to the point of leaking their contents.

Violations of EPA’s order could subject the respondents to civil penalties of at least $7,500 per violation per day. Violations could also trigger unilateral actions by EPA to carry out the terms of the order, under its legal authority. The Agency could also seek judicial enforcement of the order.

# # #

News Release from EPA - Sumter Coatings

Sumter Coatings Inc. to Pay Civil Penalty for Resource Conservation and Recovery Act Violations 

Contact Information: Dawn Harris-Young, (404) 562-8421, harris-young.dawn@epa.gov

(ATLANTA - Feb. 27, 2012) — Sumter Coatings Inc. (SCI) agreed to pay a $55,000 civil penalty as part of a settlement with the U.S. Environmental Protection Agency (EPA) for a series of hazardous waste violations at its facility in Sumter, South Carolina.  As part of the settlement, SCI agreed to develop a personnel training program, develop a schedule for implementation of the training program and identify facility employees that require training. 

SCI manufactures paints and coatings primarily for the steel and farm implement industry. SCI also blends raw materials onsite to create custom coatings. The violations were observed during April 2010, when inspectors from the EPA and the South Carolina Department of Health and Environmental Control performed a Resource Conservation and Recovery Act (RCRA) Compliance Evaluation Inspection.

The settlement resolves several alleged violations that were noted during the inspection. The alleged violations include:

• Improper management of hazardous waste containers on site;
• Failure to provide a sufficient base beneath containers which held hazardous waste;
• Failure to make a hazardous waste determination;
• Failure to inspect all areas where hazardous waste containers are stored weekly;
• Failure to develop personnel training program to ensure compliance with hazardous waste management’s;
• Failure to update information contained in the contingency plan, along with failing to make arrangements with local police and hospital authorities regarding the contingency plan and submitting copies of the contingency plan to first responders.

SCI implemented the process changes to reduce the risk of release from hazardous waste containers.  The changes include: labeling all containers with the necessary information; reducing the number of locations where short term storage occurs; changing container sizing and completing all necessary waste determinations.  SCI also applied a non-porous sealant to the base floor surface where the majority of hazardous waste containers are staged during regular operations. 

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EPA Orders Corrective Action

News release from EPA:


For Immediate Release:
February 16, 2012
                                                 
EPA ORDERS MISSISSIPPI PHOSPHATES CORPORATION OF PASCAGOULA, MS TO CORRECT PROBLEMS AT THEIR FACILITY

Contact Information: Dawn Harris-Young, (404) 562-8421, harris-young.dawn@epa.gov

ATLANTA – The Environmental Protection Agency (EPA) has issued an Administrative Order on Consent to Mississippi Phosphates Corporation (MPC) in Pascagoula, MS that requires expedited corrective measures be taken at the facility to ensure the protection of public health and the environment.  EPA issued the order under Section 7003 of the Resource Conservation and Recovery Act (RCRA), which provides statutory authority to address an imminent and substantial endangerment to human health at facilities.

EPA believes that an imminent and substantial endangerment to human health and the environment exists at the facility due to corrosive water discovered by the facility outside the West Stack perimeter dike in January 2011 and September 2011. This order further directs MPC to continue to perform corrective actions that were included in a previous September 2009 Unilateral Order. The 2009 order was issued to MPC due to the EPA’s discovery of uncontrolled leaks and spills of sulfuric acid and untreated discharges from sulfuric acid plants to the adjacent bayou; and uncontrolled spills and leaks of phosphoric acid to unlined ditches at the MPC facility in August 2009.

MPC began operation in the late 1950s and was a subsidiary of Mississippi Chemical Corporation (MCC) from the early 1990’s through 2004. On May 15, 2003, MCC filed for bankruptcy and MPC was acquired by creditors. On December 21, 2004, MPC emerged from bankruptcy and is now owned by Phosphate Holdings, Inc, a publicly traded corporation. MPC manufactures sulfuric acid and phosphoric acid at the site and produces diammonium phosphate (DAP), a phosphate-based fertilizer.

Some of the work required of MPC in the 7003 Order includes: the submission of a revised plan to repair and replace degraded containment around sulfuric acid plants (SAPs); the continued implementation of the groundwater investigative and remediation work plan for the SAPs, DAP plant and construction area southwest of SAPs; daily visual assessment of seepage from west stack perimeter dike; and the submission of a west gypsum stack system improvement plan. As MPC addresses the requirements of this order, the EPA and Mississippi Department of Environmental Quality will continue to work jointly to oversee MPC's compliance with environmental laws, regulations and permits.

Southern Wood Piedmont Co. Settles Financial Assurance Claims

News Release from EPA Headquarters:

FOR IMMEDIATE RELEASE
January 23, 2012

Southern Wood Piedmont Company Settles Financial Assurance Claims

WASHINGTON — The U.S. Environmental Protection Agency (EPA) announced that Southern Wood Piedmont Company and its parent company, Rayonier Inc., have agreed to pay a $317,000 penalty to resolve violations of hazardous waste financial assurance requirements and have obtained more than $41.7 million in financial assurance. Financial assurance protects public health and the environment by ensuring that financial resources are available to properly close and clean up facilities in the event that an owner or operator defaults on its closure, post-closure, or cleanup obligations under environmental laws.

“EPA is committed to bringing hazardous waste facilities into compliance with financial assurance requirements that prevent shifting future cleanup costs onto taxpayers,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement will reduce the likelihood of improper handling of hazardous waste and ensure that environmental damage at these facilities can be properly cleaned up.”

On February 4, 2010, EPA sent a notice of violation to Southern Wood Piedmont Company notifying the company that its hazardous waste facilities were not in compliance with applicable financial assurance requirements under the Resource Conservation and Recovery Act (RCRA) and it needed to obtain qualifying financial assurance for these obligations.

 Southern Wood Piedmont Company also had inadequate RCRA financial assurance coverage at a facility in Chattanooga, Tenn. not covered by EPA’s administrative agreement. In 2010, EPA worked with Tennessee to ensure that Southern Wood Piedmont Company obtained an additional $1.6 million in financial assurance for that facility.

Southern Wood Piedmont Company is a wholly-owned subsidiary of Rayonier, Inc., a global forest products company, involved in the ownership, leasing, and management of forest resources and related real estate, and the production of performance fibers.

More information on the settlement:

http://www.epa.gov/compliance/resources/cases/civil/rcra/swp.html

R010

Naval Base Kitsap Fails to Properly Monitor Fuel Tanks

EPA News Release:


Naval Base Kitsap fails to properly monitor fuel tanks near Puget Sound for leaks

Contact Information: Hanady Kader, EPA Public Affairs, (206) 553-0454, kader.hanady@epa.gov
Anne Christopher, EPA Ground Water Unit, (206) 553-8293, christopher.anne@epa.gov

Navy correct violations and settles with EPA for nearly $161,000.

(Seattle—Jan. 17, 2012) Naval Base Kitsap Bangor failed to properly monitor pipes and underground fuel storage tanks for leaks on its property in Silverdale, Washington in violation of federal laws that protect groundwater, according to a settlement with the U.S. Environmental Protection Agency. The Navy will pay nearly $161,000 in fines.

“EPA is working hard to restore Puget Sound and fuel leaks near the shoreline could seriously set us back,” said Peter Contreras, Manager of the Ground Water Unit in EPA’s Seattle office. “Nearby communities also rely on groundwater for drinking water, so preventing releases protects both Puget Sound and public health.”

The violations occurred between 2006 and 2010. The holding capacity of the inspected tanks ranges between 170 gallons and 45,000 gallons.

The Navy has 53 underground storage tanks on the base it uses for storing diesel, used oil and gasoline. EPA inspectors identified 37 violations including failure to properly monitor the tanks and pipes for leaks; failure to have the proper leak detection equipment installed for the pipes; and failure to provide an adequate alarm system to prevent delivery drivers from overfilling the tanks.

Leaks from underground storage tanks allow toxic fumes and vapors to escape and collect in areas such as parking garages or basements where they can cause explosion or respiratory illness. Toxic contaminants can also leak into groundwater sources that people depend on for drinking water. Regularly monitoring tanks and pipes minimizes contamination risks.

To detect leaks quickly, underground storage tanks must be monitored monthly and the pipes must be equipped with a leak detector and tested annually or monitored monthly.  The Navy had the appropriate monitoring equipment in place at most of the sites, but failed to check the monitors on a monthly basis and document that the tanks and pipes were not leaking.

Since the 2010 EPA inspection of the base, the Navy has corrected the violations. The Navy has agreed to provide EPA with documentation showing it is in compliance with proper monitoring.

The Resource Conservation and Recovery Act and requires owners of underground storage tanks to regularly monitor their tank systems for leaks.

For more information on underground storage tanks, visit http://yosemite.epa.gov/R10/WATER.NSF/UST/UST+LUST+home