HOUSTON, TX – A complex scheme to defraud the Environmental Protection Agency (EPA) and illegally import vehicles into the United States culminated in multiple guilty pleas and financial penalties in 1986 and 1987. At the center of the case was Dennis Ray Alston, owner of D.R.A. Construction Company, who, along with a network of associates, exploited a loophole in Clean Air Act regulations to bring non-conforming automobiles into the country.
The investigation, which began in 1985, revealed a deliberate effort to deceive the EPA by falsely claiming that imported vehicles qualified for a five-year-old exemption – a provision intended for classic or historically significant cars. Instead, the group allegedly misrepresented the age and condition of newer vehicles, allowing them to bypass stringent emissions standards. Freddie Fincher, president of Fred Fincher Motors, Inc., and Donald Fincher, the company’s general manager, were key figures in the operation, alongside German national Laurus, and co-owner of Grand Prix Motors, Wiatt.
The initial indictment in October 1985 charged Alston, along with Gall and Williams, with a total of 31 counts, including conspiracy (18 U.S.C. 371), entering goods with false statements (18 U.S.C. 542), smuggling (18 U.S.C. 545), and making false statements to both the EPA and Customs Service (18 U.S.C. 1001). A subsequent, expanded indictment a month later added further charges against the Fincher brothers, increasing the scale of the alleged fraud. The investigation quickly broadened to include Laurus, who faced charges related to conspiracy and false statements.
As the case progressed, a series of guilty pleas began to emerge. Williams admitted to conspiracy and smuggling, while Gall pleaded guilty to multiple counts of conspiracy and false statements. Laurus also entered a guilty plea, specifically to a violation of Section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413(c)(2)), which prohibits knowingly making false statements to the EPA. The Fincher brothers each pleaded guilty to entering goods with false statements and received a $10,000 fine each.
Alston himself ultimately pleaded guilty in October 1986 to a single felony count of conspiracy to violate 18 U.S.C. 542, 545, and 1001, and ten misdemeanor counts under Section 113(c)(2) of the Clean Air Act. His sentencing in December 1986 included six months of probation, $3,800 in restitution, and a substantial $24,000 fine. Wiatt, also pleading guilty to submitting fraudulent documents to the EPA, received 150 hours of community service and a $1,500 fine. Williams received 36 months probation and 80 hours of community service.
Key Facts
- Defendant: Dennis Ray Alston
- Crime: Fraudulent import of automobiles by circumventing Clean Air Act regulations.
- Location: Texas
- Year: 1987 (indictments & pleas occurred 1985-1986)
- Statutes Violated: 18 U.S.C. 1001, 18 U.S.C. 542, 18 U.S.C. 545, 18 U.S.C. 371, 42 U.S.C. 7413(c)(2)
- Penalties: Alston received six months probation, $3,800 restitution, and a $24,000 fine. Other defendants received fines, probation, and community service.
- The scheme involved falsely claiming vehicles qualified for a five-year-old exemption from Clean Air Act standards.
This case underscores the EPA’s commitment to enforcing environmental regulations and holding individuals accountable for attempts to circumvent the law. While the penalties in this case may seem relatively minor by today’s standards, the investigation highlights the importance of rigorous oversight in international trade and the potential for environmental harm resulting from fraudulent import practices.
Source: EPA ECHO Enforcement Case Database
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