Jeffrey Ashton, Aiding and Abetting Concealment of a Felon, Michigan 2015

Plymouth, MI – Jeffrey Ashton, a licensed Michigan insurance agent, was sentenced in June 2015 after pleading guilty to federal charges related to a scheme involving falsified underground storage tank (UST) insurance certificates. The case, investigated by the Environmental Protection Agency (EPA), revealed Ashton’s involvement in concealing a fraudulent operation that put Michigan gas stations – and potentially the environment – at risk.

According to court documents, Ashton became aware in November 2012 that Allen Chadderdon, another Michigan insurance agent, was creating fake “Storage Tank Certificate of Insurance” documents. These certificates were intended to demonstrate financial responsibility for potential leaks from USTs, a requirement under federal law. Gas station owners rely on these certificates to prove they can cover the substantial costs associated with environmental cleanup and victim compensation should a leak occur.

Instead of reporting Chadderdon’s illegal activity, Ashton actively participated in its concealment. He knowingly took possession of the forged document, delivered it to a third party in exchange for a $2,000 cash payment, retained $500 as his share, and passed the remaining $1,500 onto Chadderdon. This exchange directly assisted Chadderdon in avoiding detection and continuing the fraudulent practice. Ashton’s actions allowed gas station operators to falsely claim compliance with environmental regulations, leaving them – and the public – vulnerable to significant financial and environmental harm.

The EPA routinely inspects UST facilities in Michigan and requests proof of financial assurance, often in the form of insurance documentation. The agency’s investigation uncovered that Ashton’s actions spanned from November 28, 2012, to October 8, 2013, during which time he failed to report the crime to any relevant authority. This failure to report a known felony constitutes a separate federal offense.

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Legal Ramifications

Ashton was initially charged on February 6, 2015, with violating Title 18 U.S. Criminal Code, Section 4 – specifically, aiding and abetting the concealment of a felony and failing to report a known crime. He pleaded guilty on March 10, 2015, and was subsequently sentenced on June 8, 2015, to 24 months of probation and ordered to pay a $5,000 federal fine. While the sentence may seem lenient, federal prosecutors often consider the defendant’s cooperation in related investigations when determining penalties.

Key Facts

Defendant: Jeffrey Ashton
Location: Plymouth, Michigan
Crime: Fraudulent concealment of falsified UST insurance certificates.
Victims: Potentially gas station owners, the environment, and the public.
Statutes Violated: 18 USC 4
Penalties: 24 months probation, $5,000 fine
Co-conspirator: Allen Chadderdon (created the false certificates)

This case highlights the importance of vigilance within the insurance industry and the potential consequences of failing to uphold ethical and legal standards. The EPA continues to prioritize enforcement actions related to UST compliance to protect human health and the environment.

Source: EPA ECHO Enforcement Case Database

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