Cincinnati, OH – A flavoring manufacturer, F and C Corporation, and its president, John P. Fries, were implicated in a hazardous waste scheme that came to light in 1995, revealing a deliberate attempt to conceal and misrepresent the handling of industrial waste. The case, investigated by the Environmental Protection Agency (EPA) and resulting in criminal charges, centered around the improper disposal and accounting of a byproduct generated during the production of benzaldehyde, a key ingredient in Coca-Cola flavoring.
According to court documents, F and C generated a waste product known as FN 10 alongside benzaldehyde. Accumulating approximately 600 barrels of FN 10, the company struggled to find a viable commercial application for the substance. In a move that would later prove to be a critical component of the criminal case, John P. Fries, then president of F and C, directed employees in 1989 to transport the barrels of FN 10 to his private residence. This unauthorized removal circumvented established hazardous waste disposal protocols and triggered concerns about potential environmental contamination.
The barrels remained at Fries’ residence until 1992, when they were moved back to the F and C facility. Notably, the company then fraudulently entered the waste onto its books with an assigned value of 50 cents per pound—an apparent attempt to misrepresent the waste as a potentially marketable asset. This accounting maneuver occurred shortly before the company’s board of directors was terminated and F and C filed for bankruptcy, raising suspicions that the action was intended to shield assets or obscure the true nature of the hazardous waste liability.
Legal Ramifications
On September 28, 1994, a two-count information was filed against Fries, alleging violations of both federal environmental and fraud statutes. He was charged with one count of mail fraud, specifically 18 U.S.C. 1341, and one count of violating the Resource Conservation and Recovery Act (RCRA), 42 U.S.C. 6928(d)(5), for knowingly transporting hazardous waste without a proper manifest. Fries subsequently pled guilty to both charges.
The EPA’s criminal enforcement action highlights the agency’s commitment to pursuing individuals and companies that attempt to evade environmental regulations. The improper handling of hazardous waste like FN 10 poses significant risks to public health and the environment, necessitating strict adherence to established protocols for storage, transportation, and disposal. The attempt to conceal the waste and manipulate company records further compounded the severity of the offense.
On February 8, 1995, Fries received a sentence of 15 months of incarceration, which was suspended, along with a 12-month probationary period and a $50 fine. While the sentence may appear lenient, it reflects the specific circumstances of the case and the defendant’s guilty plea. The case serves as a cautionary tale for other businesses, underscoring the potential legal and financial consequences of neglecting environmental responsibilities and engaging in fraudulent practices.
Key Facts
- Defendant: F and C Corporation & John P. Fries
- Location: Ohio
- Waste Product: FN 10 (byproduct of benzaldehyde production)
- Illegal Activity: Improper storage and transportation of hazardous waste, fraudulent accounting
- Statutes Violated: 18 U.S.C. 1341 (Mail Fraud), 42 U.S.C. 6928(d)(5) (RCRA)
- Penalty: 15 months suspended incarceration, 12 months probation, $50 fine
- Timeline: Waste moved to residence (1989), moved back & falsified (1992), charges filed (1994), sentencing (1995)
Source: EPA ECHO Enforcement Case Database
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