Allentown, PA – Hess Environmental Laboratories systematically defrauded clients across Pennsylvania and beyond for nearly a decade, providing falsified water and environmental testing results, according to federal court records unsealed this week. The scheme, which ran from the early 1990s until 1997, impacted an estimated 4,000 victims including schools, hospitals, local governments, engineering firms, businesses, and even a U.S. Army Depot.
The investigation, led by the Environmental Protection Agency (EPA) and the Department of Justice, revealed that Hess Labs lacked the necessary equipment and failed to adhere to EPA-approved methodologies for conducting accurate analyses. Instead of admitting limitations, the company fabricated data and knowingly submitted false reports to customers. These fraudulent results were used for critical environmental compliance reporting, potentially masking serious pollution issues and endangering public health.
Judith McCoy, a key figure in the operation, was initially charged in July 1997 with conspiracy, providing false statements, and fraud. She pleaded guilty in September of the same year and received 36 months probation, a $10,000 fine, and was ordered to pay $27,000 in restitution to Tobyhanna Army Depot and Air Products and Chemicals, Inc. The indictment quickly expanded to include Hess Labs itself, facing a barrage of nine federal counts.
Timeline of Deception
The lab pleaded guilty in November 1997 to all charges, including conspiracy (18 U.S.C. 371), two counts of providing false statements (18 U.S.C. 1001), two counts of fraud (18 U.S.C. 1341), two counts of false claims (18 U.S.C. 287), and two counts of violating the Clean Water Act (33 U.S.C. 1319(c)(2)). Further investigation led to the indictment of Hopkins, a leading figure within Hess Labs, in March 1998. Hopkins directed employees to fabricate and disseminate the false results to major clients. He later pleaded guilty to four counts in July 1998 and received a 15-month prison sentence, 36 months probation, $40,000 in fines, and was ordered to pay $291,071 in restitution to the Tobyhanna Army Depot.
Financial Impact and Restitution
The total financial impact of the fraud was significant. Hess Labs was sentenced to 60 months probation and ordered to pay a staggering $5,553,634 in restitution to its widespread victim base. The EPA emphasized that the case underscored the critical importance of accurate environmental data and the severe consequences of falsifying information submitted to regulatory agencies. The agency continues to pursue stringent enforcement actions against labs that compromise environmental integrity.
Key Facts
- Defendant: Hess Environmental Laboratories
- State: Pennsylvania
- Years of Operation: Approximately 1990-1997
- Victims: Estimated 4,000, including schools, hospitals, government entities, and businesses
- Laws Violated: 18 U.S.C. 371 (Conspiracy), 18 U.S.C. 1001 (False Statements), 18 U.S.C. 1341 (Fraud), 18 U.S.C. 287 (False Claims), 33 U.S.C. 1319(c)(2) (Clean Water Act Violation)
- Penalties: $5,553,634 in restitution, $50,000 in fines, and 15 months imprisonment for Hopkins, probation for McCoy and the company.
- Method: Fabricated environmental testing results due to lack of proper equipment and adherence to EPA standards.
GrimyTimes will continue to follow this case and report on any further developments.
Source: EPA ECHO Enforcement Case Database
