Carl Kieser, Mail Fraud, Illinois 2015

Gibson City, IL – Carl Kieser, 63, was sentenced to eight years and one month in federal prison on February 19, 2015, after being convicted of mail fraud, tax evasion, and illegally applying pesticides. The case, investigated by a multi-agency task force, revealed a scheme where Kieser profited over $400,000 by selling a fraudulent pond treatment product while simultaneously evading federal income taxes.

Kieser owned and operated Aquatic Control of Illinois, marketing a product called “Pond Clear Plus” as an environmentally friendly solution for lake and pond weed control. His advertisements boldly claimed the product worked “Mother Nature’s Way” with “No Chemicals,” relying on “live bacteria” to clear ponds. However, the reality, as proven at trial, was far more sinister. Pond Clear Plus contained Diuron 80DF, a restricted-use pesticide, mixed with a blue dye. Kieser knowingly misrepresented the product’s composition, falsely assuring customers it was chemical-free.

The U.S. Environmental Protection Agency (EPA) registration for Diuron 80DF explicitly prohibits direct application to water due to its toxicity to aquatic life. Despite this warning, Kieser not only sold the diluted pesticide without proper labeling – failing to disclose the presence of Diuron – but also directly applied it to customers’ ponds and lakes. Multiple reports of fish kills followed the application of Pond Clear Plus, demonstrating the dangerous consequences of Kieser’s actions.

Federal prosecutors presented evidence that Kieser distributed Pond Clear Plus in unmarked 2.5-gallon jugs from approximately July 2007 to September 2012. He then failed to report the significant profits generated from these sales to the Internal Revenue Service (IRS), evading taxes between 2008 and 2011. The scheme was ultimately uncovered through a collaborative investigation involving the EPA’s Criminal Investigation Division, the IRS Criminal Investigation Division, and several Illinois state agencies.

“Mail fraud is a crime that can have wide-ranging impacts, sometimes leading to serious public health threats,” stated Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Illinois. “EPA’s mission of protecting public health and the environment is undermined when violators misuse and illegally market potentially harmful chemicals.” The sentencing serves as a warning to others who might prioritize profit over public safety and environmental regulations.

In addition to the 97-month prison sentence and three years of supervised release, Kieser was ordered to pay $75,862 in restitution – $71,411 to the IRS and $4,451 to the victims he defrauded. Assistant U.S. Attorney Eugene L. Miller prosecuted the case. The charges against Kieser included violations of 26 U.S.C. 7201 (tax evasion), 07 U.S.C. 136j(a)(2)(G) (Federal Insecticide, Fungicide, and Rodenticide Act – illegal pesticide application), and 18 U.S.C. 1341 (mail fraud).

Key Facts

• Defendant: Carl Kieser, 63, of Gibson City, Illinois
• Crime: Mail fraud, tax evasion, and illegal pesticide application
• Sentence: 97 months (8 years, 1 month) in federal prison, followed by 3 years of supervised release.
• Restitution: $75,862 ($71,411 to IRS, $4,451 to victims)
• Product: “Pond Clear Plus” – falsely marketed as chemical-free pond treatment
• Illegal Ingredient: Diuron 80DF, a restricted-use pesticide prohibited for direct application to water.
• Financial Impact: Kieser profited over $400,000 from fraudulent sales and evaded taxes for four years.

Source: EPA ECHO Enforcement Case Database

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