Jamestown, NY – Daniel Black, 57, of Bemus Point, New York, was sentenced to over a year in prison and hefty financial penalties after pleading guilty to knowingly violating the Clean Air Act and filing false tax returns, the Department of Justice announced March 1, 2011. The case, investigated by the EPA’s Criminal Investigation Division and the IRS-Criminal Investigation Division, highlights the severe consequences for failing to adhere to environmental regulations and comply with federal tax laws.
In July 2008, Black, as president of Blackstone Business Enterprises, Inc. (BBEI), authorized the demolition and cleanup of a four-story building in Jamestown. Black contracted four temporary workers through an employment agency to perform the work, which included the removal of steam pipes across three floors over a 2 ½ day period. A subsequent inspection 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. Critically, Black failed to conduct any pre-renovation inspection to determine the presence of asbestos, a direct violation of federal regulations designed to protect workers and the public from the dangerous substance.
The investigation uncovered a pattern of financial misconduct extending beyond the environmental violations. For the 2005, 2006, and 2007 tax years, Black failed to report a total of $455,887.32 in income received through BBEI. This resulted in a total tax loss to the government of $191,669. Prosecutors argued Black knowingly concealed this income to evade his tax obligations.
Legal Ramifications & Sentencing
On October 8, 2010, Black was formally charged with one count of violating 42 U.S.C. 7413(c)(1) of the Clean Air Act – specifically, knowingly violating regulations regarding asbestos removal – and one count of violating 26 U.S.C. 7206 of the IRS Code, pertaining to filing false tax returns. He entered a guilty plea to both counts on October 20, 2010. 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. In addition to the prison sentence, Black was ordered to pay a $30,000 federal fine and $191,669 in restitution to the IRS.
Additional Penalties & Agency Cooperation
The financial penalties didn’t stop there. As part of the plea agreement, Black also agreed to pay $205,000 to OSHA to resolve citations stemming from their inspection of the Jamestown project, and a further $25,000 to the NYS-DOL to address notice of violations issued during their inspection. This demonstrates a coordinated effort between federal and state agencies to hold Black accountable for his actions. The case serves as a stark warning to contractors and business owners that neglecting environmental safety and tax obligations will result in significant legal and financial repercussions.
Key Facts
- Defendant: Daniel Black, President of Blackstone Business Enterprises, Inc. (BBEI)
- Location: Jamestown, New York
- Year of Offense: 2008
- Violated Statutes: 42 U.S.C. 7413(c)(1) (Clean Air Act), 26 U.S.C. 7206 (IRS Code)
- Financial Misconduct: Failure to report $455,887.32 in income over three years, resulting in a $191,669 tax loss.
- Penalties: 12 months and 1 day imprisonment, $30,000 fine, 24 months probation, $191,669 restitution to IRS, $205,000 to OSHA, and $25,000 to NYS-DOL.
“Employees in the remediation and renovation business have the expectation that their health and safety will be protected on the job,” stated U.S. Attorney William J. Hochul, Jr. “The residents of a community which borders one of these projects also have the right to insist that the environmental laws and regulations which govern the process will be followed.”
Source: EPA ECHO Enforcement Case Database
Related Federal Cases
- Daniel Nix, Tax Evasion, WA 2024 · Maryland
- Takisha Rainey, Tax Refund Check Forgery, Carle Place NY, 2023 · Delaware
- Frank J. Picone, Tax Evasion, WV, 2023 · West Virginia
- Eric Burman, Black Market Lobster Operation, POMPANO BEACH FL, 2023 · New York
- Ryan S Rozycki, Tax Evasion Scheme, New Jersey 2023 · New York
