Company, senior managers sentenced for environmental, safety crimes

by Jbs050209 f3 — May 4, 2009—The U.S. Environmental Protection Agency (EPA) announced at the end of April that Atlantic States Cast Iron Pipe Co. of Phillipsburg, New Jersey, was sentenced to pay a fine of $8 million for committing numerous environmental and worker safety crimes. The judge also ordered the company to serve 48 months “monitored” probation, requiring it to submit biannual reports to the court.

The sentencing of the company followed sentencing of four former Atlantic States managers to federal prison terms ranging from six months for the former finishing department manager to 70 months for the former plant manager. Also sentenced were the former maintenance superintendent (30 months) and the former human resources manager (41 months).

Atlantic States, a division of McWane Industries, Inc. of Birmingham, AL, is one of the world’s largest makers of cast-iron water and sewer pipes with subsidiaries located throughout the United States and Canada. This is the fourth criminal prosecution and sentencing involving a McWane, Inc. facility since 2005, according to EPA.

Following a seven-month trial, a jury convicted Atlantic States and the four managers of engaging in an eight-year conspiracy to pollute the air and Delaware River in violation of the federal Clean Air and Clean Water Acts, expose its employees to dangerous conditions, and impede and obstruct federal regulatory and criminal investigations. (A fifth defendant was acquitted at trial.) This was reportedly the longest federal trial in environmental crimes history.

During the trial, the government presented evidence that the defendants routinely violated Clean Water Act permits by discharging petroleum-contaminated water and paint into storm drains that led to the Delaware River; repeatedly violated Clean Air Act permits by, among other things, burning tires and excessive amounts of hazardous waste paint in the furnace; systematically altered accident scenes and concealed serious worker injuries from health and safety inspectors; routinely lied to federal, state, and local officials who were investigating environmental and worker safety violations; and maintained a dangerous workplace that contributed to multiple severe injuries and the death of one employee at the plant.

For more information visit EPA’s Criminal Enforcement program Web site.