Jerrell Latham, Fraud, TX 1999

HOUSTON, TX – Jerrell Latham, president of Detex Environmental Services, Inc., avoided jail time but received a hefty fine after pleading guilty to submitting falsified documents related to petroleum storage tank (PST) removal projects in 1999. The case, investigated by state authorities, revealed a pattern of fraudulent reporting designed to mislead regulators regarding the proper decommissioning of underground storage tanks.

Detex Environmental Services, a Texas-based company specializing in PST removal, was at the center of the scheme. According to court documents, Latham and Evans, a manager at the company, intentionally submitted false Closure Reports for at least ten separate projects. These reports are crucial for verifying that PSTs have been removed and properly sealed to prevent soil and groundwater contamination – a significant environmental and public health concern.

The investigation began to unfold on March 20, 1998, when Latham and Evans were indicted on two counts each of submitting falsified documents, specifically violating State statute 37.10(A)(1). The indictment alleged that the pair knowingly provided inaccurate information to the State of Texas, potentially jeopardizing environmental safeguards and creating a false record of compliance.

The legal proceedings saw a swift resolution for Evans, who pleaded guilty to a single count of submission of a false document on March 11, 1999. He received a six-month jail sentence. However, the case took an additional turn when it was revealed that Evans was in the United States illegally. Following his incarceration, Evans was deported to England, his native country.

Latham followed suit, entering a guilty plea to one count of submitting a false document on April 29, 1999. However, Latham’s penalty differed significantly from Evans’. On June 15, 1999, Latham was sentenced to a $10,000 fine, escaping imprisonment despite his role as the president of the company and the orchestrator of the fraudulent scheme. The disparity in sentencing has raised questions regarding the factors considered by the court.

The case highlights the importance of rigorous oversight in the environmental services industry. Falsifying reports related to PST removal can have serious consequences, potentially leading to environmental damage, costly cleanup efforts, and risks to public health. While Latham paid a financial penalty, the long-term impact of the fraudulent reports and the potential environmental consequences remain a concern.

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Key Facts

Defendant: Jerrell Latham, President of Detex Environmental Services, Inc.
Crime: Submission of falsified Petroleum Storage Tank (PST) Closure Reports
State: Texas
Year: 1999
Statute Violated: State Statute 37.10(A)(1) – Submission of False Documents
Penalty (Latham): $10,000 fine
Penalty (Evans): Six months incarceration, followed by deportation to England
Number of Projects Involved: At least ten PST removal projects

Source: EPA ECHO Enforcement Case Database

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