Crawfordsville, IN – Derrik Hagerman, the former president and owner of Wabash Environmental Technologies (WET), is now a convicted felon after a jury found him guilty of falsifying reports related to wastewater discharge into the Wabash River. The case, prosecuted by the U.S. Environmental Protection Agency (EPA), revealed a deliberate scheme to mislead regulators and avoid accountability for exceeding permitted pollution limits.
WET operated a wastewater treatment facility servicing industrial clients. The facility was authorized to discharge treated wastewater into the Wabash River, but only within strict parameters established by the Indiana Department of Environmental Management (IDEM). According to court documents, between January and November 2004, Hagerman and WET discovered they were consistently violating these limits concerning ammonia, biological oxygen demand, total suspended solids, copper, zinc, and phenol levels. Rather than addressing the issues, they embarked on a calculated effort to conceal the violations.
The core of the deception involved the creation and submission of falsified monthly monitoring reports and discharge monitoring reports to IDEM. These reports deliberately misrepresented the facility’s performance, showing few, if any, exceedances of permitted levels. The scheme continued for nearly a year before coming to light, demonstrating a sustained pattern of criminal behavior driven by profit. The court, during sentencing, characterized Hagerman’s actions as “coldblooded deception for profit,” highlighting the intentional and malicious nature of the fraud.
Legal Ramifications
Hagerman was convicted on all ten counts of violating the Clean Water Act (CWA). Specifically, he was found in violation of 18 U.S.C. 2 (general criminal provisions) and 33 U.S.C. 1319(c)(4), which addresses false statements in reports required by the CWA. On November 15, 2007, Hagerman received a five-year prison sentence. WET, as a corporate entity, was sentenced to a five-year term of probation.
Financial Penalties and Restitution
Beyond incarceration and probation, both Hagerman and WET were held jointly and severally liable for $237,680 in restitution. This substantial sum will be directed to the USEPA Hazardous Substance Superfund, intended to help fund the cleanup of environmental contamination and address future pollution incidents. The financial penalty underscores the seriousness of the offense and the EPA’s commitment to holding polluters accountable.
Investigation and Future Implications
The EPA’s investigation, conducted in conjunction with IDEM, exposed a systemic failure to comply with environmental regulations. This case serves as a stark reminder that falsifying environmental data is a serious federal crime with significant consequences. The EPA continues to prioritize enforcement of the Clean Water Act to protect our nation’s waterways and public health. Environmental watchdogs suggest this case will likely prompt increased scrutiny of wastewater treatment facilities and their reporting practices throughout Indiana and the broader Midwest.
Key Facts
- Defendant: Derrik Hagerman & Wabash Environmental Technologies (WET)
- Location: Crawfordsville, Indiana
- Crime: Falsifying Clean Water Act reports
- Dates of Violation: January – November 2004
- Statutes Violated: 18 U.S.C. 2, 33 U.S.C. 1319(c)(4)
- Sentence: Hagerman – 5 years imprisonment; WET – 5 years probation
- Restitution: $237,680 to the USEPA Hazardous Substance Superfund
Source: EPA ECHO Enforcement Case Database
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