Asbestos Scheme Unraveled: James Powers Indicted for Environmental Crimes

James Powers, a 59-year-old Washington D.C. resident, has been indicted for violating the Clean Air Act and for fraud stemming from a scheme to improperly remove asbestos from a historic building in the District of Columbia.

According to the indictment, Powers formed a partnership with a local real estate development firm to purchase and renovate the Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. An asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board, and pipe insulation.

Despite receiving bids from licensed professional asbestos abatement and renovation firms in the area, Powers hired Larry Miller, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. Miller and his crew of workers conducted interior demolition at the Maples during September and October 2011, without any asbestos abatement having been done.

The indictment alleges that Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property and emailed them a proposed contract, but the contract was with a corporation that, unbeknownst to his partners, was an alter-ego for Powers.

Assistant Attorney General John C. Cruden stated, "The Clean Air Act asbestos standards exist to protect the public, especially demolition and renovation workers, from harmful and potentially fatal exposure to asbestos." U.S. Attorney Channing D. Phillips added, "This businessman is accused of endangering his own work crew by not taking the proper steps to renovate a building containing asbestos."

The indictment charges Powers with violations of the Clean Air Act, wire fraud, and first-degree fraud, which is a District of Columbia offense. It also includes a forfeiture allegation seeking all proceeds that can be traced to the fraud scheme.

The case is being investigated by the Environmental Protection Agency and the U.S. Attorney’s Office for the District of Columbia. The indictment was returned by a grand jury in the U.S. District Court for the District of Columbia.