James B. Hellman, Bribery, Colorado 1989

Denver, CO – A disturbing case of corruption within Denver’s public school system came to light in 1989, resulting in the conviction of James B. Hellman and his associate for bribery and obstruction of justice. The case, investigated by the Environmental Protection Agency (EPA) and prosecuted under federal statutes, revealed a scheme to illegally secure asbestos removal contracts from Denver area schools.

Hellman, an employee of Denver Asbestos Control Technology, Inc. (DACT) and its subsidiary D.A.C.T. U.S.A., Inc., was indicted in August 1988 alongside three other individuals. The eleven-count indictment alleged a widespread effort to influence school officials through bribery in exchange for awarding asbestos removal contracts to the companies. Asbestos, a known carcinogen, poses a significant health risk, making the safe and compliant removal from schools a critical public safety concern.

The charges stemmed from accusations that Hellman and his colleagues offered bribes to school officials to ensure DACT and D.A.C.T. U.S.A. were favored in the bidding process. The indictment detailed six counts of bribery violating 18 U.S.C. 666(a)(1)(B) and (a)(2), which prohibits offering or giving anything of value to a public official with intent to influence official acts. Further charges included two counts of making false statements in violation of 18 U.S.C. 1001, two counts of influencing official acts under 18 U.S.C. 1014, and one count of mail fraud, 18 U.S.C. 1341, relating to the use of the mail system to facilitate the corrupt scheme.

While the case initially involved four defendants, a superseding information filed in February 1989 saw one associate, Lederman, plead guilty to a reduced charge of making a false statement (18 U.S.C. 1003) and influencing an official act (18 U.S.C. 1014). Hellman also entered a guilty plea, admitting to one count of bribery and one count of influencing, effectively narrowing the scope of the original indictment.

Sentencing occurred in March 1989. Lederman received 36 months probation on each count (to run concurrently), 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 comparatively harsher sentence for Hellman likely reflects his direct involvement in the bribery component of the scheme.

Table of Contents

Key Facts

Defendant: James B. Hellman
Companies Involved: Denver Asbestos Control Technology, Inc. (DACT) and D.A.C.T. U.S.A., Inc.
Location: Denver, Colorado
Year: 1989
Violated Statutes: 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, 18 U.S.C. 1003
Penalties: Hellman received 18 months imprisonment, 36 months probation, and a $100 fine. Lederman received 36 months probation, a $1,500 fine, $50 assessment, and 150 hours community service.

GrimyTimes will continue to follow any developments related to this case and investigate potential ongoing issues of corruption within public contracting.

Source: EPA ECHO Enforcement Case Database

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