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 multi-year conspiracy to illegally store and transport hazardous waste, and to defraud the Internal Revenue Service (IRS). The case, stemming from the operations of 5R Processors, a Wisconsin-based electronic waste recycling company, reveals a deliberate pattern of environmental and financial misconduct.
According to court documents, 5R Processors, founded in 1988 by Thomas Drake, operated facilities in Wisconsin and Tennessee, dismantling electronic equipment like computers and televisions for parts resale. While the company initially responsibly disposed of lead-containing cathode ray tube (CRT) glass – a significant hazardous waste component – that practice ceased around 2011. Dennee, responsible for environmental compliance within the company, allegedly participated in a scheme to store the dangerous CRT glass at unpermitted facilities, avoiding proper disposal costs.
The conspiracy involved a range of deceptive practices designed to evade regulatory oversight. Investigators found evidence that Dennee and co-conspirators altered dates on waste containers, concealed them within semi-trailers, and obstructed inspections by strategically stacking pallets. False shipping records were submitted to regulators, and hazardous materials were deliberately stored in dark, unpowered warehouses, effectively masking the illegal activity. This allowed 5R to cut corners and maximize profits at the expense of environmental safety and public health.
The fraudulent activity wasn’t limited to environmental violations. James Moss, President of 5R Processors, alongside Dennee, also conspired to evade payment of employment and income taxes to the IRS for 5R and two related companies, Wisconsin Logistic Solutions and Pure Extractions. Over several years, the group allegedly failed to remit a total of $858,100 in federal taxes, further compounding their criminal conduct. Moss received an 18-month prison sentence and was ordered to pay $2,392,778.79 in restitution.
Dennee’s sentence reflects a growing trend of federal enforcement targeting environmental crimes and tax fraud. Prosecutors emphasized the seriousness of the offenses, highlighting the potential risks posed by improper handling of hazardous waste and the financial burden placed on taxpayers by tax evasion. The case underscores the importance of corporate responsibility and the consequences of prioritizing profit over compliance with environmental regulations and tax laws.
Key Facts
- Defendant: Bonnie Dennee
- State: Wisconsin
- Year: 2021
- 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 was sentenced to 5 months of incarceration, 3 years of supervised release, and ordered to pay $1,534,677.50 in restitution.
- Co-conspirators: James Moss and Thomas Drake were also convicted in the case.
- Company: 5R Processors Ltd. was the central entity involved in the illegal activities.
GrimyTimes will continue to follow this case and report on any further developments.
Source: EPA ECHO Enforcement Case Database
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