Houston, TX – John R. Cooke, a former chemical broker operating in Houston, Texas, received a 36-month federal prison sentence in late 1999 following a complex case involving the illegal storage and abandonment of hazardous waste. The case, investigated by the Environmental Protection Agency (EPA), ultimately led to Cooke pleading guilty to bank fraud, with initial environmental charges dropped as part of a plea agreement. The incident highlights the dangers of improper hazardous waste management and the potential for significant financial and environmental damage.
According to court documents, Cooke owned and operated two chemical brokerage companies during 1994 and 1995. During this period, he knowingly stored material containing vinyl acetate – a hazardous substance – in above-ground storage tanks within the Houston area. Rather than responsibly managing the chemical, Cooke failed to secure a viable market for the material. In 1995, he abandoned the substance, leaving it unsecured at a tank farm. A subsequent breach of containment, specifically the opening of a valve on one of the tanks, resulted in a release of the hazardous waste into the environment.
Legal Battles and Plea Deal
The initial indictment came on February 25, 1999, with Cooke facing two counts of violating the Resource Conservation and Recovery Act (RCRA), specifically 42 U.S.C. 6928(d)(2)(A), which prohibits the knowing transport, storage, or disposal of hazardous waste without a permit. The first trial, lasting six days, concluded in a mistrial on September 13, 1999. Following the mistrial, prosecutors shifted their focus, charging Cooke with one count of bank fraud under 18 U.S.C. 1344. In exchange for a guilty plea to the bank fraud charge, the EPA agreed to drop the original environmental violations.
Financial Restitution and Concurrent Sentencing
On December 22, 1999, Cooke was sentenced to 36 months of incarceration, followed by 60 months of supervised release. However, this sentence was designed to run concurrently with a 29-month sentence already imposed on October 26, 1999, in the Southern District of Mississippi, under Docket Number 5.98CR15BRN. Crucially, Cooke was also ordered to pay significant restitution totaling $4,844,243.53. This included $1,997,243.53 to Deposit Guaranty Bank and $2,847,000 to the St. Paul Fire and Marine Insurance Company, representing the financial losses incurred due to his fraudulent activities.
The Broader Implications
The Cooke case serves as a stark reminder of the EPA’s commitment to pursuing criminal enforcement against those who intentionally violate environmental regulations. The abandonment of hazardous waste not only poses a direct threat to public health and the environment but also creates substantial financial burdens for cleanup and remediation. While the plea deal focused on bank fraud, the initial RCRA violations underscored the severity of Cooke’s initial actions. The significant restitution orders demonstrate the financial consequences of environmental crimes.
Key Facts
- Defendant: John R. Cooke
- Location: Houston, Texas; Louisiana (jurisdiction for sentencing)
- Year: 2000 (sentence year)
- Statutes Violated: 18 U.S.C. 1344 (Bank Fraud), 42 U.S.C. 6928(d)(2)(A) (RCRA – Illegal Hazardous Waste Storage)
- Sentence: 36 months incarceration, 60 months supervised release
- Restitution: $4,844,243.53 (to Deposit Guaranty Bank & St. Paul Fire and Marine Insurance Company)
- Hazardous Substance: Vinyl Acetate
GrimyTimes will continue to follow cases of environmental crime and hold perpetrators accountable.
Source: EPA ECHO Enforcement Case Database
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