Albany, NY – A decade-long conspiracy to illegally remove asbestos from hundreds of buildings across New York State culminated in significant prison sentences and hefty financial penalties for multiple individuals and a corporation, according to court records unsealed this week. The case, originating in 2000 and spanning over six years of legal proceedings, revealed a systematic pattern of fraud and disregard for public health and environmental regulations.
The central figure in the scheme was Alex Salvagno, owner of Analytical Laboratories of Albany (ALA). Salvagno secretly directed ALA to produce falsified air monitoring reports for AAR, Inc., a company contracted to remove asbestos. These fraudulent reports falsely indicated compliance with the National Emission Standards for Hazardous Air Pollutants (NESHAP) work practice standards, allowing AAR, Inc. to continue operating illegally and endangering workers and the public.
The investigation, led by the Environmental Protection Agency’s Criminal Investigation Division (EPA CID), uncovered a complex web of deceit involving numerous co-conspirators. Initial charges were filed against defendants Hall, Farbent, Gardner, and Goyeau in February 2000, with several pleading guilty to conspiracy charges (18 U.S.C. 371) early in the process. The indictment in February 2002 broadened the scope, implicating Raul Salvagno, Alvord, Lindquist, Shanahan, Dimaio, Reed, O’Brey, and Mongato, alongside AAR, Inc.
The legal battles that followed saw a cascade of guilty pleas and convictions. Reed, for example, admitted to 14 felony counts. However, the most severe penalties were reserved for Alex and Raul Salvagno. In March 2004, Alex Salvagno was found guilty of Racketeer Influenced and Corrupt Organizations (RICO) violations, conspiracy to violate the Clean Air Act (CAA) and the Toxic Substances Control Act (TSCA), nine counts of CAA violations, and three counts of income tax evasion. Raul Salvagno faced similar convictions, though with fewer counts. The sentencing phase delivered crushing blows: Alex Salvagno received a 300-month (25-year) prison sentence, 36 months of probation, $23,039,607 in restitution, and $2 million in forfeiture. Raul Salvagno was sentenced to 234 months (19.5 years) incarceration, 36 months probation, $22,875,575 in restitution, and $1,707,156 in forfeiture. AAR, Inc. was ordered to pay $22,875,567 in restitution and $2,033,457 in forfeiture.
The fallout extended to other participants. Dimaio, Lindquist, Hall, O’Brey, Alvord, Carroll, Gardner, Goyeau and, ultimately, Eric C. Farbent all received prison sentences ranging from 8 months to 42 months, along with probationary periods and community service requirements. Kinch was convicted of making materially false statements at trial (18 U.S.C. 1623). The case highlights the EPA’s commitment to pursuing criminal enforcement of environmental laws and holding accountable those who prioritize profit over public safety. The deliberate falsification of air monitoring reports not only violated the Clean Air Act but also created a dangerous situation for workers and residents exposed to asbestos, a known carcinogen.
Key Facts
- Defendant: Eric C. Farbent, along with numerous co-conspirators and AAR, Inc.
- Crime: Conspiracy to violate the Clean Air Act (CAA) and Toxic Substances Control Act (TSCA) through fraudulent asbestos removal practices.
- Location: New York State
- Years Active: The conspiracy spanned approximately ten years, from around 1990 to 2000.
- Statutes Violated: 18 U.S.C. 371 (Conspiracy), 18 U.S.C. 1623 (False Statements), Clean Air Act (CAA), and Toxic Substances Control Act (TSCA).
- Penalties: Prison sentences ranging from 8 months to 25 years, substantial financial restitution (totaling over $45 million collectively), and forfeiture of assets.
- Key Players: Alex Salvagno (owner of ALA, directed fraud), Raul Salvagno, AAR, Inc.
GrimyTimes will continue to follow environmental crime cases and provide updates as they develop.
Source: EPA ECHO Enforcement Case Database
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