Salt Lake City, UT – Former Johnson Matthey, Inc. employee John David McKelvie was sentenced in 2008 following a multi-year investigation into systematic violations of the Clean Water Act at the company’s Salt Lake City refining facility. The case, brought by the Environmental Protection Agency (EPA), revealed a deliberate effort to falsify data regarding selenium levels in wastewater discharged into the Central Valley Water Reclamation Facility.
Johnson Matthey, Inc. (JMI), a precious metals refining company, processed gold and silver from Dore, a semi-refined product, beginning in 1982. The refining process naturally generated selenium as a pollutant in the wastewater. While the facility implemented treatment processes, EPA investigators found that between 1996 and 2002, JMI routinely exceeded the permitted selenium discharge limits set by Central Valley. An internal audit in 1999 flagged the issue, discovering that employees were actively screening wastewater samples *before* submitting them for independent laboratory analysis—a clear violation of the facility’s industrial discharge permit.
The scheme escalated in January 2000. Employees began conducting in-house selenium concentration tests, then selectively submitting only the samples with lower readings to external labs. The resulting, falsified data was then reported to Central Valley, effectively concealing the true extent of the pollution. Further compounding the violations, JMI employees repeatedly interfered with official sampling attempts by Central Valley personnel. On multiple occasions, they shut off the flow of process water to the final sump—where wastewater collected before discharge—artificially diluting the sample and lowering the reported selenium levels.
Legal Ramifications & Sentencing
In March 2006, McKelvie, along with co-defendant Greaves and the company itself, were charged with multiple federal crimes. The charges included making false statements (18 U.S.C. 1001), conspiracy (18 U.S.C. 371), and violations of the Clean Water Act (33 U.S.C. 1319(c)(2)(A) and 33 U.S.C. 1319(c)(4), and 33 U.S.C. 1311(a)). McKelvie ultimately pled guilty to one count of making false statements. He received a sentence of 12 months probation and was ordered to pay a $1,000 federal fine.
Greaves also pled guilty to one count of making false statements and received a similar sentence of 12 months probation and a $500 fine. Johnson Matthey, Inc. bore the brunt of the penalties, receiving 36 months probation, a $2.25 million federal fine, and was ordered to pay $750,000 in restitution. The restitution funds were directed to the National Fish and Wildlife Foundation to support environmental projects in Utah, specifically focusing on wildlife habitat restoration around the Great Salt Lake and research into selenium standards for the lake and its tributaries.
Key Facts
- Defendant: John David McKelvie, Johnson Matthey, Inc.
- Crime: Clean Water Act violations, false statements, conspiracy
- Location: Salt Lake City, Utah
- Years of Violation: 1996 – 2002
- Pollutant: Selenium
- Statutes Violated: 33 U.S.C. 1319(c)(4), 18 U.S.C. 1001, 33 U.S.C. 1311(a), 18 U.S.C. 371, 18 U.S.C. 1001
- Penalties: McKelvie – 12 months probation, $1,000 fine. JMI – 36 months probation, $2.25 million fine, $750,000 restitution.
This case underscores the EPA’s commitment to enforcing environmental regulations and holding companies and individuals accountable for deliberately concealing pollution and endangering public health and the environment. The investigation highlights the importance of accurate reporting and the potential consequences of manipulating environmental data.
Source: EPA ECHO Enforcement Case Database
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