Wibaux, MT – Donald E. Wood Jr., CEO of Woody’s Trucking LLC, has been sentenced to a year and a day in federal prison for orchestrating a decade-long scheme to defraud insurers and conceal the illegal transportation of hazardous materials. The sentencing, handed down on November 13, 2018, in U.S. District Court, follows an eight-day trial in May that resulted in convictions on 13 of 14 counts for both Wood and his company. Woody’s Trucking was also sentenced to four years of probation.
The case stems from a devastating explosion on December 29, 2012, at the Custom Carbon Processing, Inc. (CCP) facility in Wibaux, Montana. Three employees sustained serious injuries when natural gas condensate, commonly known as “drip gas,” ignited during unloading from a Woody’s Trucking tanker. The driver had transported the highly flammable substance from a pipeline station in Watford City, North Dakota.
Investigators discovered that Woody’s Trucking had routinely falsified bills of lading, labeling the dangerous drip gas as “slop oil and water” – a non-hazardous material. This deliberate misrepresentation allowed the company to avoid regulatory requirements for transporting flammable liquids, including proper placarding of the vehicle and obtaining appropriate insurance coverage. Crucially, the truck involved in the explosion was not marked to indicate it was carrying a hazardous substance.
The fraud didn’t end with the initial mislabeling. Following the explosion and subsequent investigation, Wood directed a driver to plant a falsified bill of lading *inside* the burned-out wreckage of the truck. This desperate attempt was designed to cover up the illegal transport and mislead investigators, the Occupational Safety and Health Administration (OSHA), and the company’s insurance provider. Wood then submitted a claim to the insurance company for costs associated with the explosion and the ensuing civil lawsuit filed by the injured workers.
The insurance company ultimately paid $644,689.70 to cover costs, fees, and settlements related to the incident, all while harboring suspicions about Woody’s Trucking’s lack of transparency regarding the hazardous materials. The court ordered Wood and Woody’s Trucking to pay full restitution of this amount. The prosecution highlighted the callous disregard for safety and the deliberate attempt to profit from a dangerous and illegal operation.
Key Facts
- Defendant: Donald E. Wood Jr. and Woody’s Trucking LLC
- Location: Wibaux, Montana
- Incident Date: December 29, 2012
- Injuries: Three employees seriously injured
- Fraudulent Activity: Mislabeling hazardous materials as non-hazardous to avoid regulations and insurance costs.
- Restitution: $644,689.70
Legal Violations & Penalties
Donald E. Wood Jr. and Woody’s Trucking LLC were convicted of violating several federal statutes, including:
- 18 U.S.C. 371: Conspiracy to commit offenses against the United States.
- 49 U.S.C. 5110 & 5124: Violations of the Hazardous Materials Transportation Act, specifically related to shipping papers and placarding requirements.
- 18 U.S.C. 1343: Wire Fraud
- 18 U.S.C. 1519: Obstruction of Justice
Wood was sentenced to 12 months and one day in prison, followed by three years of supervised release. Woody’s Trucking received four years of probation and was ordered to pay restitution. The case serves as a stark warning to companies that prioritize profit over safety and attempt to circumvent federal regulations.
Source: EPA ECHO Enforcement Case Database
Related Federal Cases
- Donald E. Wood Jr., Hazmat Fraud, MT 2019 · North Dakota
- Kelly Steen, Hazmat Fraud, MT 2015 · Montana
- Kelly Steen, Hazmat Fraud, MT 2015 · Montana
- Willard Wilson White III, Wire Fraud, MT 2024 · Montana
- Christopher Agbaje, Law Firm Fraud, North Dakota 2023 · North Dakota
