Miami, FL – Daniel J. Fern, owner of Air Environmental Research, was sentenced to 138 months in federal prison in January 1995 after being convicted on eight counts related to a fraudulent asbestos abatement scheme and subsequent insurance fraud. The case, originating in 1994, exposed a dangerous disregard for worker safety and environmental regulations during the removal of asbestos from a 196-room hotel in Florida.
According to court documents, Fern and a co-conspirator, the hotel owner, engaged in a “rip and run” asbestos removal process. An informant revealed that the abatement operation completely lacked basic safety precautions. Workers reportedly removed approximately 400 bags of asbestos without utilizing protective gear – including suits, respirators, or HEPA vacuums – and failed to employ wetting techniques to minimize airborne asbestos fibers. Crucially, no air monitoring was conducted during the removal process, creating a significant health risk for those involved and potentially exposing the public.
The scheme didn’t stop at reckless endangerment. Fern and the hotel owner conspired to defraud an insurance company by submitting falsified air samples, claiming widespread asbestos contamination that did not accurately reflect the actual conditions. This fabricated evidence was intended to inflate insurance claims related to the abatement work. The Environmental Protection Agency (EPA) initiated the investigation after receiving information regarding these unsafe practices and the suspected fraud.
Legal Ramifications
Fern was initially indicted on nine counts in May 1994. The charges included three counts of violating the Clean Air Act (42 U.S.C. 7413), specifically for knowingly violating applicable implementation plans related to asbestos handling. He also faced four counts of mail fraud (18 U.S.C. 1341) for submitting false claims to the insurance company, and two counts of witness tampering (18 U.S.C. 1512(c)(2)) – though one witness tampering count was ultimately dismissed.
Following a trial in January 1995, Fern was convicted on eight of the nine charges. The sentencing judge imposed a total of 138 months incarceration, with 24 months for the Clean Air Act violations, 57 months for the fraud counts, and 57 months for the remaining witness tampering charge. All sentences were ordered to run concurrently. In addition to the prison term, Fern was ordered to pay a $400 special assessment fee.
Key Facts
- Defendant: Daniel J. Fern
- Location: Florida
- Crime: Asbestos abatement fraud, Clean Air Act violations, and witness tampering
- Victim: Workers, the public, and an insurance company
- Asbestos Volume: Approximately 400 bags removed without proper safety measures.
- Sentence: 138 months imprisonment, $400 assessment fee
- Statutes Violated: 42 U.S.C. 7413, 18 U.S.C. 1341, 18 U.S.C. 1512(c)(2)
This case serves as a stark reminder of the dangers of improper asbestos handling and the severe consequences of prioritizing profit over public health and safety. The EPA continues to aggressively pursue enforcement actions against those who violate environmental regulations and engage in fraudulent schemes.
Source: EPA ECHO Enforcement Case Database
