Environmental Law

Another Clean Water Act Sentencing

By Walter James

Yesterday, April 22, 2009, Michael Panyard, the former general manager of Comprehensive Environmental Solutions Inc. in Dearborn, Mich., was sentenced to fifteen (15) months in prison, two years of supervised release and was ordered to participate in a comprehensive drug treatment program.  Panyard was convicted following a three week trial in October 2008, of nine counts, including one conspiracy count, two counts of violating the CWA and six counts of making false statements in connection with illegal discharges of millions of gallons of untreated liquid wastes from the facility. 

Earlier this month, Charles Long, also a former plant manager, was sentenced to twenty-four (24) months in prison followed by two years supervised release (for conviction on nine counts, including one conspiracy count, two counts of violating the CWA and six counts of making false statements)  Bryan Mallindine, the former chief executive officer, was sentenced to three years probation, including three months home confinement (for misdemeanor conviction on one count of negligently bypassing the facility?s required pretreatment system)

Another former plant manager, Don Kaniowski, also was sentenced in March to three years probation following his plea to a felony CWA violation.  Kaniowski provided substantial assistance to the government in the course of its investigation.    

According to the USDOJ press release, evidence presented during the trial proved that:

CESI had a permit to treat liquid industrial waste brought to the facility from throughout the Midwest and Canada, through a variety of processes, and then discharge it into the Detroit sanitary sewer system.  Liquid industrial wastes were stored at the facility in twelve large above-ground tanks capable of holding more than 10 million gallons.  During the period from January 2001 to June 2002, facility employees routinely bypassed the facility?s treatment system in order to discharge untreated liquid wastes directly into the sanitary sewer system.  During most of this time, the facility had no operable equipment to treat incoming liquid wastes and the 10 million gallon tank farm was full with virtually no capacity to store additional liquid wastes.  Nonetheless, the facility continued to accept more than 16 million gallons of liquid industrial waste-streams for purported treatment and disposal.  Because the facility had no space available for this additional waste, nor equipment to treat it, company employees discharged nearly 13 million gallons of untreated liquid waste into the sanitary sewer in violation of the Clean Water Act, the facility?s permit, and the consent order under which the facility operated.

Evidence at trial further showed that the defendants took steps to conceal the lack of treatment from customers and regulatory officials, including Detroit Water and Sewerage Department personnel, through false statements and tampering with legally required compliance samples.

The USDOJ went on with self-serving quotes from the regulators, including from John C. Cruden, the Acting Assistant Attorney General for the Justice Department?s Environment and Natural Resources Division (John, do you write your own stuff?).  Sometimes, I wonder what it would be like to be John Cruden, getting all of the free publicity.  Image the kind of coin the man could make in the private sector with his connections and knowledge.  From my perspective, however, I am glad he is in the service of the government.  He is a man of fine character.  Unfortunately, in this day and age, a man of his integrity seems to be a rare thing.

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

WDJiii

Full post as published by Environmental Crimes Blog on April 23, 2009 (boomark / email).