James B. Hellman, Bribery, CO 1989

Denver, CO – A scheme to illegally secure asbestos removal contracts with Denver area public schools culminated in the conviction of James B. Hellman, a former employee of Denver Asbestos Control Technology, Inc. (DACT) and D.A.C.T. U.S.A., Inc. The case, originating in 1988, exposed a network of bribery and false statements designed to circumvent proper bidding procedures and secure lucrative government contracts.

According to court documents, Hellman, alongside other individuals including a co-defendant named Lederman, engaged in a calculated effort to influence school officials. An eleven-count indictment was initially filed in August of 1988, alleging a broad conspiracy involving six counts of bribery, two counts of making false statements, two counts of influencing official actions, and one count of mail fraud. The investigation, led by federal authorities, revealed that DACT and D.A.C.T. U.S.A., Inc. were actively pursuing asbestos removal projects within Denver’s public school system.

The core of the scheme involved offering bribes to individuals with the power to award asbestos removal contracts. Prosecutors alleged that Hellman and his associates attempted to secure these contracts through illicit means, rather than through fair and competitive bidding. The false statements component of the indictment centered around misrepresentations made to authorities regarding the company’s qualifications and the nature of the work being performed. Mail fraud charges stemmed from the use of the postal service to facilitate the corrupt transactions.

The legal fallout began in February 1989, when a superseding information was filed, and Lederman opted to plead guilty to one count of making a false statement (18 U.S.C. 1003) and one count of influencing official actions (18 U.S.C. 1014). Shortly after, Hellman also entered a guilty plea, admitting to one count of bribery (18 U.S.C. 666) and one count of influencing (18 U.S.C. 1014). The plea deals marked a turning point in the case, avoiding a potentially lengthy and complex trial.

Sentencing & Penalties

In March of 1989, both men received sentencing. Lederman was sentenced to 36 months of probation, a $1,500 fine, a $50 assessment to the Crime Victim’s Fund, and 150 hours of community service. Hellman faced a more severe penalty, receiving an 18-month prison sentence, followed by 36 months of probation and a $100 assessment to the Crime Victim’s Fund. The disparity in sentencing likely reflected Hellman’s more direct involvement in the bribery scheme. The full list of statutes violated included 18 U.S.C. 666(a)(1)(B), 18 U.S.C. 666(a)(2), 18 U.S.C. 1001, 18 U.S.C. 1014, and 18 U.S.C. 1341.

Key Facts

• Defendant: James B. Hellman
• Companies Involved: Denver Asbestos Control Technology, Inc. (DACT) & D.A.C.T. U.S.A., Inc.
• Location: Denver, Colorado
• Year of Conviction: 1989
• Charges: Bribery, False Statements, Influencing Official Actions, Mail Fraud
• Statutes Violated: 18 U.S.C. 666(a)(1)(B), 18 U.S.C. 666(a)(2), 18 U.S.C. 1001, 18 U.S.C. 1014, 18 U.S.C. 1341
• Penalty (Hellman): 18 months incarceration, 36 months probation, $100 assessment.

This case serves as a stark reminder of the potential for corruption within government contracting and the importance of rigorous oversight to ensure public funds are used responsibly. The EPA’s criminal enforcement efforts, in this instance, helped to expose and punish those who sought to profit illegally from vital public services.

Source: EPA ECHO Enforcement Case Database

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