Mark Glover, Environmental Fraud, Michigan 2013

CANTON, MI – Discount Computers Inc. (DCI), a Michigan-based electronics broker, and two of its executives have been sentenced following a federal investigation into a scheme to illegally export hazardous electronic waste and traffic in counterfeit goods. The case, brought by the Environmental Protection Agency (EPA) and the Department of Justice, revealed a systematic effort to evade environmental regulations and deceive foreign importers.

From 2008 to 2012, DCI, with warehouses spanning Canton, Michigan, Maryland Heights, Missouri, and Dayton, New Jersey, specialized in reselling used computer components. A significant portion of their business involved exporting cathode ray tube (CRT) monitors to countries in the Middle East and Asia. However, Egypt prohibits the import of computer equipment older than five years. To circumvent this restriction, DCI intentionally replaced original manufacturer labels on the used CRT monitors with counterfeit labels indicating a more recent production date.

Federal prosecutors detailed how DCI shipped at least 300 loads to Egypt over the five-year period, totaling a shipment value of over $2.1 million – representing more than 100,000 CRT monitors. This practice not only defrauded Egyptian authorities but also facilitated the illegal dumping of hazardous e-waste in regions with potentially lax environmental standards. CRT monitors contain significant amounts of lead, a known toxic substance that can leach into groundwater if improperly disposed of.

The investigation, led by the EPA’s Criminal Investigation Division, uncovered that DCI knowingly violated both environmental regulations and federal criminal statutes. Mark Glover, acting on behalf of himself and the company, pled guilty in October 2012. On March 25, 2013, DCI was sentenced to pay a $2 million federal fine and $10,839.05 in restitution. Glover himself received a 30-month prison sentence and was ordered to pay a $10,000 fine. Brett Glover, another executive involved in the scheme, also pled guilty and was sentenced in August 2013 to 12 months and a day in prison, along with a $6,000 fine.

Legal Violations and Penalties

DCI and the Glovers were found to have violated 42 U.S.C. 6928(e) of the Resource Conservation and Recovery Act (RCRA), which prohibits the knowing treatment, storage, or disposal of hazardous waste without a permit. They were also charged with violating 18 U.S.C. 2320, the federal law prohibiting the trafficking of counterfeit goods or services with the intent to deceive. The penalties reflect the seriousness of these offenses, combining significant financial burdens for the company with substantial prison time and fines for the individuals involved.

Key Facts

• Defendant: Discount Computers Inc. (DCI) and Mark & Brett Glover
• Location: Canton, Michigan (Headquarters), with warehouses in Missouri & New Jersey
• Scheme: Replacing labels on old CRT monitors to falsely indicate a newer manufacture date for export to Egypt
• Value of Shipments: Over $2.1 million worth of CRT monitors (100,000+ units)
• Laws Violated: Resource Conservation and Recovery Act (RCRA) & Trafficking in Counterfeit Goods
• Penalties: DCI – $2M fine + $10,839 restitution. Mark Glover – 30 months prison + $10K fine. Brett Glover – 12 months + $6K fine.

The case serves as a stark reminder of the environmental and criminal risks associated with the improper handling of e-waste. Authorities emphasize the importance of responsible recycling and the consequences of attempting to circumvent regulations designed to protect human health and the environment. The EPA continues to actively investigate and prosecute companies and individuals who prioritize profit over compliance with environmental laws.

Source: EPA ECHO Enforcement Case Database

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