Jeffrey J. Frey, Fraud, NE 2001

Eagle, NE – A former manager of People Service, a subsidiary of Utilicorp, has been sentenced for defrauding homeowners and violating federal environmental regulations, according to court documents unsealed this week. Jeffrey J. Frey pleaded guilty in 2000 to charges stemming from falsified reports submitted to the Environmental Protection Agency (EPA) regarding sewage treatment systems under his management.

Between June 1995 and April 1997, Frey knowingly filed false discharge monitoring reports. These fraudulent submissions allowed People Service to collect approximately $350,000 from facilities contracting with the company under false pretenses. The scheme involved misrepresenting the quality of wastewater discharged from the managed systems, leading to financial gain at the expense of homeowners and potentially endangering public health and the environment.

The investigation, led by the EPA’s Criminal Investigation Division, revealed a deliberate effort to conceal non-compliance with the Clean Water Act. Frey was initially charged on February 16, 2000, with one count of violating 33 U.S.C. 1319(c)(2)(A) – knowingly making false statements under the Clean Water Act – and one count of making false statements in violation of 18 U.S.C. 1001. His guilty plea resulted in a sentence of six months of home detention with electronic monitoring, two years of probation, 150 hours of community service, a $200 special assessment fee, a $3,000 fine, and $3,120 in restitution to the Woodland Hills Homeowners Association.

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Corporate Accountability

The investigation didn’t stop with Frey. On March 15, 2001, both People Service and its parent company, Utilicorp, were also charged with multiple violations of the Clean Water Act. Each entity pleaded guilty to five counts. People Service faced potential fines totaling $500,000, with a $100,000 fine levied immediately. The remaining $400,000 was conditionally discharged, contingent upon the company’s completion of a detailed EPA and Nebraska Department of Environmental Quality-directed compliance plan and sustained adherence to environmental regulations.

Utilicorp also faced significant penalties. The company was ordered to pay a $625 special assessment, a $100,000 federal fine, $150,000 to the Nebraska Environmental Trust – with $50,000 specifically designated for environmental law enforcement training – and $750,000 to the environmental group Back to the River, Inc. These financial repercussions represent a substantial effort to remediate the damage caused by the fraudulent activities and bolster environmental protection efforts within the state.

Key Facts

Defendant: Jeffrey J. Frey, People Service, Utilicorp
Crime: Fraud, Clean Water Act Violations
State: Nebraska
Year: 2001
Fraud Amount: $350,000
Laws Violated: 33 U.S.C. 1319, 18 U.S.C. 1001
Frey’s Sentence: 6 months home detention, 2 years probation, $3,300 in fines & restitution, 150 hours community service.
People Service Fine: $100,000 (with $400,000 conditionally discharged)
Utilicorp Penalties: $1.5625 million in fines and payments

This case underscores the EPA’s commitment to prosecuting individuals and corporations that prioritize profit over environmental compliance and public safety. The combined penalties levied against Frey, People Service, and Utilicorp send a clear message that falsifying environmental reports and defrauding stakeholders will not be tolerated.

Source: EPA ECHO Enforcement Case Database

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