Springfield, IL – Eric M. Andrews, former owner of Environmental Management of Illinois, Inc. (EMI), was sentenced to 30 months in federal prison on March 30, 2016, for his role in a multi-million dollar fraud scheme targeting the Illinois Environmental Protection Agency (IEPA). The sentencing concludes a case that exposed a decade-long conspiracy to siphon funds from a program designed to clean up leaks from underground storage tanks.
Andrews, 52, along with his brother Joel Andrews and former business partner Michael Keebler, artificially inflated expenses related to the remediation of petroleum-contaminated sites across Illinois. EMI, contracted to clean up these sites, then submitted fraudulent claims to the IEPA’s Leaking Underground Storage Tank (LUST) fund for reimbursement. The LUST fund, financed by state taxes and fees on gasoline purchases, is intended to assist tank owners with cleanup costs.
Prosecutors detailed how the scheme operated through a network of complicit vendors. These vendors agreed to provide dual invoices – one reflecting the actual cost of services rendered to EMI, and a second, inflated invoice submitted to the IEPA. In other instances, EMI misrepresented the amounts paid to vendors, claiming full price when reduced rates had been negotiated. Modified invoices and entirely fabricated charges were also used to maximize fraudulent reimbursement requests.
Timeline of Deceit
The conspiracy spanned from 2001 to 2013, with Joel Andrews founding EMI in 1997 and Eric joining in 1999. Keebler joined the firm in 2001 before ultimately purchasing it in 2006. The FBI and the EPA’s Criminal Investigation Division launched a two-year investigation that ultimately unraveled the complex scheme. Keebler was sentenced to five years in prison in August 2015, while Joel Andrews received a 36-month sentence.
Legal Ramifications and Restitution
All three men pleaded guilty to charges of conspiracy to commit mail fraud, violating Title 18 U.S. Criminal Code, specifically 18 U.S.C. 371. In addition to their prison sentences, Judge Sue E. Myerscough ordered the defendants to jointly and severally pay restitution of no more than $13.36 million to the IEPA. Approximately $6.2 million has already been recovered through funds posted with the court, and the government is pursuing forfeiture of remaining assets, including the EMI business itself.
Key Facts
- Defendants: Eric M. Andrews, Joel C. Andrews, Michael Keebler
- Crime: Conspiracy to commit mail fraud, defrauding the Illinois EPA’s LUST fund.
- Scheme: Inflated invoices and misrepresented costs for environmental remediation services.
- Duration: 2001 – 2013 (12 years)
- Restitution: Up to $13.36 million
- Sentences: Eric Andrews (30 months), Joel Andrews (36 months), Michael Keebler (60 months)
- Laws Violated: 18 U.S.C. 371 (Conspiracy to commit mail fraud)
First Assistant U.S. Attorney Patrick D. Hansen prosecuted the case, highlighting the EPA and FBI’s commitment to protecting public funds allocated for environmental cleanup and holding those who exploit these programs accountable.
Source: EPA ECHO Enforcement Case Database
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