Michael Keebler, Mail Fraud, Illinois 2015

SPRINGFIELD, IL – Michael Keebler, the owner of Environmental Management of Illinois, Inc. (EMI), was sentenced to five years in federal prison this week for his role in a decade-long scheme to defraud the Illinois Environmental Protection Agency (IEPA) out of over $13 million. The elaborate fraud, spanning from 2001 to 2013, targeted funds earmarked for cleaning up leaks from underground storage tanks (USTs) across the state.

Keebler, 53 of Sherman, Illinois, pleaded guilty in February 2015 to two counts of conspiracy to commit mail fraud (18 U.S.C. 371). The investigation, a joint effort by the Federal Bureau of Investigation and the U.S. Environmental Protection Agency’s Criminal Investigation Division, revealed a systematic manipulation of billing practices at EMI. Prosecutors detailed how Keebler and his co-conspirators inflated invoices submitted to the IEPA for reimbursement, effectively diverting public funds for personal gain.

The scheme involved colluding with vendors to create dual invoices – one reflecting the actual cost of services rendered, and another with inflated figures submitted to the IEPA. In some cases, EMI principals agreed to pay vendors a reduced rate while falsely reporting full price to the agency. Other instances involved the outright fabrication or alteration of invoices to exaggerate charges. The LUST (Leaking Underground Storage Tanks) program, funded by state taxes and fees on gasoline purchases, was specifically targeted.

“This wasn’t a case of simple overbilling; it was a calculated and sustained effort to exploit a vital environmental program designed to protect Illinois communities,” stated Assistant U.S. Attorneys Patrick D. Hansen and John E. Childress, who prosecuted the case. “The defendants treated public funds as their personal piggy bank, jeopardizing the integrity of the LUST program and delaying legitimate cleanup efforts.”

Beyond Keebler, several other individuals were implicated in the fraud. EMI founder Eric Andrews and his brother, Joel Andrews, both pleaded guilty to conspiracy to commit mail fraud and face restitution orders. Engineer Jeremy VanScyoc, also an EMI employee, admitted to inflating subcontractor invoices and received a sentence of one day in prison, along with supervised release and restitution. Furthermore, Keebler’s brothers, Duane and Joseph Keebler, each pleaded guilty to the same conspiracy charge and were sentenced to 24 months probation, along with $119,719 in restitution each.

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Key Facts

Defendant: Michael Keebler, owner of Environmental Management of Illinois, Inc. (EMI)
Crime: Conspiracy to commit mail fraud (18 U.S.C. 371)
Location: Springfield, Illinois
Years Active: 2001 – 2013
Amount Defrauded: Over $13 million from the Illinois Environmental Protection Agency’s Leaking Underground Storage Tank (LUST) fund.
Sentence: Five years in federal prison, three years of supervised release, and restitution of up to $13,363,665.
Co-conspirators: Eric Andrews, Joel Andrews, Jeremy VanScyoc, Duane Keebler, Joseph Keebler

Judge Sue E. Myerscough ordered Keebler to pay restitution of up to $13,363,665, to be shared with his co-defendants. The case underscores the EPA’s commitment to aggressively pursuing criminal enforcement actions against those who attempt to defraud environmental programs and undermine public trust. The investigation serves as a stark reminder that those who exploit public funds for personal enrichment will be held accountable to the fullest extent of the law.

Source: EPA ECHO Enforcement Case Database

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