EPA National News: EPA Press Advisory: (1) Norwegian Shipping Company Sentenced to Pay $3.5 Million Fine; (2) Former Holland American Line Executive Pleads Guilty and is Sentenced for False Compliance Reporting; (3) Two West Virginia Residents Sentenced in Asbestos Case; (4) New York Industrial Park Owner Pleads Guilty to Illegal Asbestos Removal; (5) Former New York Resident Indicted on Fraud Charges Related to Underground Tank Removal
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EPA Press Advisory: (1) Norwegian Shipping Company Sentenced to Pay $3.5 Million Fine; (2) Former Holland American Line Executive Pleads Guilty and is Sentenced for False Compliance Reporting; (3) Two West Virginia Residents Sentenced in Asbestos Case; (4) New York Industrial Park Owner Pleads Guilty to Illegal Asbestos Removal; (5) Former New York Resident Indicted on Fraud Charges Related to Underground Tank Removal

      Following are some Agency developments which may interest you. If you need more information on any of these subjects, call the appropriate contact.


News for release: (Washington, D.C. -- Wednesday, July 14, 2004)

Weekly Enforcement and Compliance Wrap Up

Christopher Lagan 202-564-7338 / lagan.christopher@epa.gov

(1) Norwegian Shipping Company Sentenced to Pay $3.5 Million Fine

Hoegh Fleet Services, a Norwegian operator of ocean-going cargo ships, was sentenced to pay a $3.5 million fine for seven felony violations of U.S. federal law. Hoegh’s was found guilty of keeping a falsified Oil Record book, obstruction of justice and making false statements to the U.S. Coast Guard. Hoegh was ordered to develop a comprehensive environmental plan for all 38 of its ships that visit U.S. waters and ordered to serve four years probation. According to court documents, the investigation began in September 2003 after a whistleblower from the crew of the vessel Hoegh Minerva informed authorities that members of the crew had allegedly used a bypass pipe to route waste oil around the oil-water separator in the ship’s pollution control system. Investigators later uncovered evidence indicating that the ship’s Oil Record Book contained false entries. Falsifying Oil Record Books can prevent regulators from determining if ships are in compliance with federal law. Sentencing was handed down on June 29 in U.S. District Court for the Western District of Washington. The case was investigated by the Los Angeles, San Francisco and Seattle offices of EPA’s Criminal Investigation Division and the Los Angeles and Portland Offices of U.S. Coast Guard’s Marine Safety Office with assistance from the Coast Guard Investigative Service and the Washington State Department of Ecology’s Spill Prevention, Preparedness and Response Program. It was prosecuted by the U.S. Attorney’s Offices in Los Angeles, San Francisco and Seattle.

(2) Former Holland American Line Executive Pleads Guilty and is Sentenced for False Compliance Reporting

Richard K. Softye of Seattle, Wash., former Vice President-Operating Line Compliance at Holland America Line and a former career Coast Guard Officer, pled guilty and was sentenced on charges that he falsely reported that the Holland America Line was implementing its portion of a court-ordered environmental compliance plan (ECP). The Court ordered Softye to pay a $10,000 fine, serve three years probation and perform 450 hours of community service. The ECP was required of Carnival Corporation, the parent company of Holland America. In April 2002, Carnival pled guilty to charges that it made false entries in its Oil Record Books and was ordered to pay $18 million in fines and environmental service projects. Carnival was also ordered to institute an environmental compliance program in all of its lines, including Holland America. Oil Record Books are required to account for the disposal of waste oil aboard ships. The release of waste oil into the sea can harm fish and other aquatic life. By falsely reporting that Holland America was implementing an environmental compliance audit program, Softye compromised the integrity of Carnival’s ECP and hindered the Court’s ability to oversee Holland America’s compliance. Sentencing was handed down on June 29 in U.S. District Court for the Southern District of Florida in Miami. The case was investigated by EPA’s Criminal Investigation Division Office in Miami and the FBI. It was prosecuted by the U.S. Attorney’s Office in Miami.

(3) Two West Virginia Residents Sentenced in Asbestos Case

Elaine Mauck and Jess Mauck, co-owners of a company called “Crim de la Crim.” in Martinsburg, W.Va., were sentenced on June 25 for crimes arising from the illegal removal of asbestos. The defendants will each serve three years probation, the first six months in home detention. They were also ordered to pay $52,000 in restitution for medical monitoring of workers they illegally hired to remove and dispose of asbestos from a building in Martinsburg between November 2000 and February 2001. Elaine Mauck pled guilty to illegally removing asbestos in violation of the Clean Air Act. Jess Mauck pled guilty to illegally removing and disposing of asbestos without a license in violation of the Toxic Substances and Control Act. At the plea hearing, an EPA Criminal Investigation Division (EPA/CID) Special Agent testified that the defendants hired and then exposed untrained workers to asbestos without protection during the removal and disposal of asbestos from the building. Sentencing was handed down in U.S. District Court for the Northern District of West Virginia in Wheeling, W.Va. The case was investigated by EPA’s Criminal Investigation Division Office in Wheeling, the FBI and the West Virginia Department of Environmental Protection with the assistance of EPA’s National Enforcement Investigations Center. It was prosecuted by the U.S. Attorney’s Office in Wheeling, W.Va. and the Environmental Crimes Section of the U.S. Department of Justice in Washington, D.C.

(4) New York Industrial Park Owner Pleads Guilty to Illegal Asbestos Removal

Arthur Hilton of Castelton, N.Y., owner of the Hilton Industrial Park in Rensselaer, N.Y., has pled guilty to violating the Clean Air Act. Hilton admitted to hiring workers to illegally handle asbestos from buildings which he owned at his industrial park. The defendant admitted that the workers illegally disposed of the asbestos by dumping it at various locations near the New York State/Massachusetts border. Illegal dumping of asbestos can cause asbestos fibers to become airborne, and inhaling asbestos fibers is a known cause of lung cancer, a lung disease known as “asbestosis,” and mesothelioma which is a cancer of the chest and abdominal cavities. At sentencing, Hilton faces a maximum sentence of up to five years in prison and/or a fine of up to $250,000. The plea was entered on June 30 in U.S. District Court for the Northern District of New York in Syracuse. The case was investigated by EPA’s Criminal Investigation Division office in Syracuse, the New York State Department of Environmental Conservation and the New York State Department of Labor’s Asbestos Control Bureau. It is being prosecuted by the U.S. Attorney’s Office in Syracuse.

(5) Former New York Resident Indicted on Fraud Charges Related to Underground Tank Removal

Bahavesh Kamdar, formerly of Williamsville, N.Y., was indicted on 30 counts of mail fraud and money laundering on June 30, in U.S. District Court for the Western District of New York in Buffalo, N.Y. Kamdar is accused of allegedly over-billing New York State through a contract to remove and replace underground storage tanks at New York State facilities. Kamdar formerly owned Industrial Site Services, Inc., which was awarded a $4.9 million underground storage tank remedial contract by the New York State Office of General Services. The indictment alleges that Kamdar falsely declared payment of a $500,000 performance bond premium/collateral price and over-charging New York State for the services of his company. The indictment seeks the forfeiture of over $5.9 million. The case was investigated by the New York State Inspector General’s Office, the Criminal Investigation Division of the Internal Revenue Service, the FBI and the EPA’s Criminal Investigation Division office in Buffalo. It is being prosecuted by the U.S. Attorney’s Office in Buffalo. An indictment is merely an allegation, and all defendants are presumed innocent unless or until proven guilty in a court of law.

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