Miami, FL – InStar Services Groups, Inc., a national disaster recovery and property restoration firm, was sentenced in November 2006 following a criminal investigation by the Environmental Protection Agency (EPA). The case, stemming from reconstruction work following the devastating 2004 and 2005 Florida hurricane seasons, revealed a pattern of negligent handling of hazardous materials, specifically asbestos, at multiple housing complexes.
According to court documents, InStar was contracted to perform renovation and demolition work on properties damaged by the storms. Despite being fully aware that asbestos-containing materials were present in the structures—a known health hazard regulated under the Clean Air Act (CAA)—the company deliberately failed to adhere to federal regulations designed to protect both workers and the public. Investigators found that InStar skipped a crucial step: providing the legally mandated 10-day notification to authorities *before* disturbing the asbestos.
The EPA’s investigation uncovered further violations of the National Emission Standards for Hazardous Air Pollutants (NESHAP) work practice standards. These standards outline specific procedures for safely removing, handling, and disposing of asbestos to minimize airborne exposure. InStar’s failure to comply with these standards between approximately November 18, 2005, and January 31, 2006, exposed workers and potentially nearby residents to dangerous asbestos fibers. The company’s actions were not simply oversights, but a knowing disregard for established safety protocols.
On September 29, 2006, InStar was formally charged with two counts of violating the Clean Air Act: 42 U.S.C. 7413(c)(1), relating to the knowing failure to comply with NESHAP work practice standards, and 42 U.S.C. 7413(c)(2), concerning the knowing failure to provide required notifications prior to asbestos removal. The company swiftly entered a guilty plea to both counts, acknowledging their culpability in the matter.
Sentencing and Penalties
The sentencing, handed down on November 8, 2006, included a significant financial penalty and a period of court-supervised probation. InStar received 60 months of probation per count, to run concurrently, along with an $800 special assessment fee and a substantial $1 million federal fine. Beyond monetary penalties, the court ordered InStar to contribute $2 million to the Florida Statewide Environmental Task Force as a form of community service, aimed at bolstering environmental protection efforts throughout the state.
As a critical condition of their probation, InStar was mandated to develop and implement a comprehensive Environmental Compliance Plan. This plan, subject to court oversight, is designed to ensure the company adheres to all applicable environmental regulations in future projects, preventing similar violations from occurring. The case serves as a stark reminder that companies operating in the disaster recovery sector—often working under immense pressure—cannot compromise on environmental and worker safety standards.
Key Facts
- Defendant: InStar Services Groups, Inc.
- Crime: Clean Air Act (CAA) Violations – Failure to notify authorities and comply with asbestos handling standards.
- Location: Florida
- Year: 2007 (Sentencing occurred in 2006, stemming from activities in 2005-2006)
- Statutes Violated: 42 U.S.C. 7412, 42 U.S.C. 7413(c)(1), 42 U.S.C. 7413(c)(2)
- Penalties: 60 months probation (concurrent per count), $800 special assessment, $1 million federal fine, $2 million payment to the Florida Statewide Environmental Task Force, and implementation of a comprehensive Environmental Compliance Plan.
Source: EPA ECHO Enforcement Case Database
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