Cleveland, OH – General Environmental Management, LLC (GEM), a Cleveland-based recycling and wastewater treatment facility, and its Vice President, Scott A. Forster, were sentenced in January 2009 following a federal investigation into fraudulent reporting and illegal hazardous waste storage. The case, brought forth by the Environmental Protection Agency (EPA), revealed a pattern of deliberate misrepresentation to regulators and a clear violation of environmental protection laws.
According to court documents, GEM operates a facility designed to treat industrial wastewater before discharging it into the Northeast Ohio Regional Sewer District (NEORSD) system. A critical component of their operating permit stipulated that GEM secure pre-approval from NEORSD *before* processing any hazardous wastewater received from clients. However, investigators discovered GEM routinely circumvented this requirement, accepting and processing hazardous materials without the necessary authorization. This practice not only violated the terms of their permit but also posed a potential risk to the sewer system and the surrounding environment.
The investigation went further, uncovering that GEM was also illegally storing drums of hazardous waste at their facility. Crucially, GEM did not possess a Resource Conservation and Recovery Act (RCRA) permit, which is legally required for the storage of hazardous materials. Instead of immediately processing the drummed waste as regulations demanded, GEM stockpiled it, further compounding their violations. This unauthorized storage created a significant environmental hazard, increasing the risk of leaks, spills, and potential contamination.
On October 23, 2008, GEM was formally charged with two counts of making false statements under 18 U.S.C. § 1001, and one count of violating 18 U.S.C. § 1018. Forster was individually charged with one count of making false statements. Both the company and Forster subsequently pleaded guilty to the charges. The prosecution successfully demonstrated a deliberate effort to deceive regulators and skirt environmental regulations for economic gain.
Penalties & Sentencing
As a result of the guilty pleas, GEM was sentenced to a year of probation. Scott A. Forster received a year of probation and was ordered to pay a hefty $20,000 criminal fine. While the penalties may seem relatively modest, legal experts note that the case served as a warning to other facilities handling hazardous materials – demonstrating that falsifying reports and operating without proper permits will be met with federal prosecution.
Key Facts
- Defendant: General Environmental Management, LLC (GEM)
- Location: Cleveland, Ohio
- Crime: Fraudulent reporting to regulators & illegal hazardous waste storage
- Statutes Violated: 18 U.S.C. § 1001 (False Statements), 18 U.S.C. § 1018 (False Statements regarding Hazardous Waste)
- Penalties: GEM – 1 year probation; Scott A. Forster – 1 year probation & $20,000 fine
- Key Issue: GEM accepted hazardous waste without proper permits or pre-approval, then falsified reports.
GrimyTimes will continue to follow this case and report on any further developments.
Source: EPA ECHO Enforcement Case Database
Related Federal Cases
- Ex-Chairman John Smith, Ran $250M Securities Fraud Scheme, New York… · New York
- Robert Gordon, Healthcare Fraud, FL, 2023 · Florida
- Craig Sherman Pleads Guilty to Wire Fraud, West Palm Beach FL, 2023 · Florida
- Terrell Fuller, Wire Fraud, Brooklyn NY, 2023 · New York
- Michael J. Finkelstein, Health Care Fraud, Long Island NY, 2023 · Rhode Island
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime