Jamestown, NY – Daniel Black, 57, of Bemus Point, New York, was sentenced to over a year in prison and hefty fines after pleading guilty to knowingly violating the Clean Air Act and filing false tax returns, according to a release from the U.S. Attorney’s Office for the Western District of New York. The case, stemming from a 2008 renovation project, highlights the dangers of improper asbestos abatement and the government’s commitment to pursuing both environmental and financial crimes.
In July 2008, Black, president of Blackstone Business Enterprises, Inc. (BBEI), authorized the demolition and cleanup of a four-story building in Jamestown. Black hired four temporary workers through an employment agency to remove steam pipes across three floors. Critically, no asbestos inspection was conducted prior to the start of work. Subsequent inspections by the New York State Department of Labor, Asbestos Control Bureau (NYS-DOL) and the Occupational Safety and Health Administration (OSHA) revealed the steam pipes contained asbestos insulation, exposing workers and potentially the surrounding community to the hazardous material.
The investigation revealed a pattern of negligence regarding worker safety and a deliberate disregard for environmental regulations. Black’s failure to assess the presence of asbestos constituted a violation of the Clean Air Act, specifically 42 U.S.C. 7413(c)(1), which prohibits knowingly violating regulations designed to protect air quality. This oversight put workers at risk of developing serious respiratory illnesses, including cancer, years after exposure.
Beyond the environmental violations, Black was also found to have systematically underreported income from BBEI between 2005 and 2007. The IRS investigation uncovered that Black failed to report $70,589.89 in 2005, $186,390.57 in 2006, and $279,217.76 in 2007, resulting in a total tax loss to the government of $191,669. This constituted a violation of 26 U.S.C. 7206, a federal statute addressing the filing of false tax returns.
Penalties & Restitution
On March 1, 2011, U.S. District Court Judge Richard J. Arcara sentenced Black to 12 months and one day of incarceration, followed by 24 months of supervised probation. The court also imposed a $30,000 federal fine. However, the financial penalties didn’t stop there. Black was ordered to pay $191,669 in restitution to the IRS for the unpaid taxes. Furthermore, he agreed to pay $205,000 to OSHA to resolve citations stemming from the safety violations and an additional $25,000 to the NYS-DOL to settle notice of violations.
Key Facts
- Defendant: Daniel Black
- Company: Blackstone Business Enterprises, Inc. (BBEI)
- Location: Jamestown, New York
- Year of Offense: 2008
- Statutes Violated: 42 U.S.C. 7413(c)(1) (Clean Air Act), 26 U.S.C. 7206 (Tax Fraud)
- Sentence: 12 months and 1 day imprisonment, 24 months probation, $30,000 fine
- Restitution/Penalties: $191,669 to IRS, $205,000 to OSHA, $25,000 to NYS-DOL
“This case sends a clear message that those who prioritize profit over the health and safety of workers and the environment will be held accountable,” stated William V. Lometti, Special Agent in Charge of EPA’s Criminal Enforcement Program in New York. The collaborative investigation was conducted by Special Agents from the U.S. Environmental Protection Agency and the Internal Revenue Service – Criminal Investigation Division.
Source: EPA ECHO Enforcement Case Database
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