Cleveland, OH – Christopher L. Gattarello, the owner of several garbage-hauling businesses, was sentenced to 57 months in federal prison in July 2017 for a complex scheme involving illegal waste disposal, asbestos contamination, and large-scale fraud. The case, investigated by a multi-agency task force including the U.S. and Ohio Environmental Protection Agencies, exposed a deliberate disregard for environmental regulations and financial laws, leaving a contaminated site and defrauded businesses in its wake.
According to court documents, Gattarello, operating through Reach Out Disposal, All Points Rubbish Disposal, and Axelrod Rubbish Recycling, leased the former National Acme facility in Cleveland in 2011. He falsely represented that the facility would be used for paper and cardboard recycling. Instead, the 570,000 square-foot building quickly became an illegal dumping ground for both recyclable materials and general municipal waste. As the facility filled, Gattarello initiated plans to demolish the building and sell the scrap metal, all while knowingly concealing the presence of dangerous asbestos.
The scheme escalated when Gattarello directed William Jackson, owner of a demolition company, to begin demolition in July 2012 *without* proper asbestos abatement. Despite being informed by the city of Cleveland that demolition could not commence until asbestos removal was completed – a process estimated to cost $1.5 million – Jackson proceeded at Gattarello’s direction. This reckless action released asbestos fibers into the surrounding environment, endangering nearby residents and a local school. The resulting debris, containing exposed asbestos, was left vulnerable to wind and weather, further exacerbating the contamination.
The criminal activity didn’t stop at environmental violations. Gattarello and Robert A. Shaw, Sr., an employee, defrauded AIM Business Capital LLC, a Louisiana-based factoring company, out of $1.1 million. They fabricated invoices for services rendered by Gattarello’s companies and submitted them to AIM, receiving immediate cash advances based on the false claims. Employees were coerced into creating false documentation attesting to the validity of these fraudulent invoices.
The investigation revealed a calculated effort to circumvent regulations and maximize profit at the expense of public health and financial integrity. Shaw received a one-year prison sentence for his role in the fraud. William Jackson was sentenced to 33 months in prison and, along with Gattarello, ordered to pay substantial restitution. The total restitution ordered amounts to $7.8 million, split between the defendants, to cover the cost of cleaning the contaminated site and reimbursing the EPA for previous remediation efforts.
The case underscores the severe consequences of environmental crime and financial fraud. Gattarello was ordered to pay $5.9 million to the city of Cleveland for site cleanup, nearly $800,000 to the U.S. EPA, and $1.1 million to AIM Business Capital. The prosecution, led by Assistant U.S. Attorneys Brad Beeson and Chelsea Rice, successfully demonstrated a pattern of deliberate deception and disregard for the law.
Key Facts
- Defendant: Christopher L. Gattarello, Robert A. Shaw, Sr., William S. Jackson
- Location: Cleveland, Ohio
- Years Active: 2011-2017
- Violated Statutes: 18 U.S.C. 1343 (Wire Fraud), 42 U.S.C. 7413(c)(1) (Clean Air Act), 18 U.S.C. 1957 (Interstate Commerce Fraud), 18 U.S.C. 1349 (Conspiracy to Commit Fraud)
- Penalties: Gattarello – 57 months imprisonment, $5.9M restitution, $800K EPA payment, $1.1M AIM payment. Shaw – 1 year imprisonment. Jackson – 33 months imprisonment, $7.8M restitution.
- Environmental Impact: Illegal dumping of waste, release of asbestos fibers into the environment, contamination of a residential area.
- Financial Impact: $1.1 million loss to AIM Business Capital LLC.
Source: EPA ECHO Enforcement Case Database
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