Bonnie Dennee, Hazardous Waste Conspiracy, Wisconsin 2021

Milwaukee, WI – Bonnie Dennee, former Executive Vice President of 5R Processors Ltd., was sentenced in January 2021 to five months of incarceration followed by three years of supervised release for her role in a complex conspiracy involving the illegal storage and transportation of hazardous waste, and tax evasion. The case, investigated by the Environmental Protection Agency (EPA) and the Internal Revenue Service (IRS), revealed a deliberate scheme to skirt environmental regulations and defraud the federal government.

5R Processors, founded in 1988 and operating facilities in Wisconsin and Tennessee, specialized in recycling electronic equipment. While initially adhering to proper disposal procedures for lead-containing cathode ray tubes (CRTs) extracted from discarded televisions and computer monitors, the company, under the direction of CEO Thomas Drake and President James Moss, began to cut corners in 2011. Instead of paying for proper disposal of the hazardous CRT glass, the company opted to store it at unpermitted facilities, creating a significant environmental risk.

According to court documents, Dennee, as Director of Environmental, Health, Safety and Certifications, was integral in concealing the illegal activities from regulators. The conspiracy involved a series of deceptive tactics, including altering dates on containers, hiding waste within semi-trailers, obstructing inspections with strategically stacked pallets, and providing falsified shipping records. Warehouses were deliberately kept dark, further hindering oversight. The operation continued for approximately five years, until authorities uncovered the scheme.

The fraud extended beyond environmental violations. Moss, alongside others, also conspired to evade payment of employment and income taxes for 5R, as well as two affiliated companies, Wisconsin Logistic Solutions and Pure Extractions. The total tax liability amounted to $858,100 in unpaid employee federal income taxes and Federal Insurance Contributions Act (FICA) taxes. This dual scheme demonstrates a calculated disregard for both environmental protection and fiscal responsibility.

James Moss, the company president, received an 18-month prison sentence and was ordered to pay $2,392,778.79 in restitution. Dennee’s sentence, while shorter, reflects her significant role in enabling the illegal operations. The restitution order for Dennee totaled $1,534,677.50. Prosecutors emphasized the severity of the crimes, highlighting the potential harm to public health and the environment caused by the improper handling of hazardous waste.

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Key Facts

Defendant: Bonnie Dennee
Company: 5R Processors Ltd.
Location: Wisconsin and Tennessee
Years Active: 2011-2016 (illegal activity)
Statutes Violated: Title 18 U.S. Criminal Code, specifically 18 U.S.C. § 371 (Conspiracy) and violations of the Resource Conservation and Recovery Act (RCRA).
Penalties: Dennee received 5 months imprisonment, 3 years supervised release, and $1,534,677.50 in restitution. Moss received 18 months imprisonment, 3 years supervised release, and $2,392,778.79 in restitution.
Hazardous Waste: Lead-containing CRT glass from recycled electronic equipment.

The case serves as a stark reminder of the importance of corporate accountability and the potential consequences of prioritizing profit over environmental and legal compliance. The EPA and IRS continue to investigate similar cases nationwide, aiming to protect both public health and the integrity of the tax system.

Source: EPA ECHO Enforcement Case Database

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