Daniel Brown, Fraud, TX 1998

Beaumont, TX – Daniel Brown, co-owner of Texas Environmental Services (TES), was sentenced in 1996 for his role in a widespread fraud scheme that compromised the integrity of environmental testing in Southeast Texas. The case, brought under federal criminal statutes, revealed a pattern of falsified wastewater and drinking water reports submitted to refineries, chemical plants, and municipalities across the region.

According to court documents, Brown and his partner systematically provided hundreds of inaccurate test results to clients, potentially jeopardizing public health and environmental safety. The scheme involved fabricating data rather than conducting legitimate analysis, allowing polluting industries to appear compliant with environmental regulations. The falsified reports were then used to satisfy regulatory requirements and avoid costly remediation efforts.

Brown was initially charged in February 1996, and swiftly pleaded guilty to one count of conspiracy (18 U.S.C. 371) in May of the same year. He received a 24-month prison sentence, followed by 36 months of probation. As part of his sentencing, Brown was also ordered to perform 140 hours of community service and pay a $10,000 fine. Crucially, he was permanently barred from participating in the environmental testing industry in any capacity.

His co-owner, identified as Budd in court records, faced a more protracted legal battle. Indicted alongside Brown, Budd went to trial in July 1996 and was convicted on all four counts, including conspiracy and mail fraud (18 U.S.C. 1341). In January 1997, he was sentenced to a 72-month prison term, followed by 36 months of probation, a $15,000 fine, and 140 hours of community service, also with a lifetime ban from environmental testing. Budd appealed his sentence, but the Fifth Circuit Court of Appeals upheld the conviction and sentencing in August 1998.

The case highlights the critical importance of accurate environmental monitoring and the severe consequences for those who prioritize profit over public safety. The EPA’s criminal enforcement division pursued the case aggressively, demonstrating a commitment to safeguarding the environment and ensuring the reliability of data used to protect communities. The long-term impact of the falsified reports remains largely unknown, but the case serves as a stark warning to other laboratories and individuals tempted to cut corners in the environmental testing process.

Key Facts

Defendant: Daniel Brown
Company: Texas Environmental Services (TES)
Location: Southeast Texas
Statutes Violated: 18 U.S.C. 371 (Conspiracy), 18 U.S.C. 1341 (Mail Fraud)
Penalties (Brown): 24 months incarceration, 36 months probation, $10,000 fine, 140 hours community service, lifetime ban from environmental testing.
Penalties (Budd): 72 months incarceration, 36 months probation, $15,000 fine, 140 hours community service, lifetime ban from environmental testing.

GrimyTimes will continue to follow this case and report on any further developments.

Source: EPA ECHO Enforcement Case Database

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