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John T. Frederick, Jr., Fraud, HI 2003

Pearl Harbor, HI – Former Department of the Navy inspector John T. Frederick, Jr. was sentenced in May 2003 following a guilty plea to federal fraud and illegal hazardous waste disposal charges, bringing to light a disturbing case of environmental contamination and breach of public trust. The case, investigated by the Environmental Protection Agency (EPA) and the Department of Justice, revealed a pattern of deliberate misconduct involving the improper dumping of toxic materials at Keehi Lagoon and Pearl Harbor Naval Base.

Frederick, while employed as an inspector, allegedly directed employees of Dames and Moore (D&M), a government contractor, to illegally dispose of lead and zinc chromate – classified as hazardous waste – by dumping it directly into Keehi Lagoon, a vital waterway for marine life and recreation. Further investigation uncovered that Frederick also oversaw the burial of these same toxic substances in undisclosed locations across the Pearl Harbor Naval Base, potentially threatening groundwater and long-term environmental health.

The criminal investigation didn’t stop at environmental crimes. On October 1, 2002, Frederick was initially charged with accepting illicit payments as a subcontractor from D&M, the very company he was responsible for inspecting. This represented a clear conflict of interest, as Frederick was essentially being paid by a firm whose work he was tasked with objectively evaluating. The charges extended to accusations of Frederick actively soliciting kickbacks to secure contracts for his own subcontracting business, further compounding the severity of his offenses.

The legal basis for the prosecution rested on several key federal statutes. Frederick pled guilty to one count of violating 18 U.S.C. 208, which addresses acts affecting a personal financial interest, and one count each of violating 41 U.S.C. 53 and 41 U.S.C. 54, both pertaining to contractor fraud and the acceptance of illegal kickbacks. The evidence presented demonstrated a calculated scheme to profit from his position of authority while simultaneously endangering the environment and compromising the integrity of government contracting.

On January 21, 2003, Frederick formally entered a guilty plea to both counts. The sentencing, handed down on May 23, 2003, resulted in a 36-month probationary period, requiring Frederick to complete 100 hours of community service. He was also ordered to pay a $200 special assessment fee and a substantial $10,000 federal fine. While the financial penalties and probationary sentence represented a measure of accountability, critics questioned whether the punishment adequately addressed the long-term environmental damage caused by his actions.

The case of John T. Frederick, Jr. serves as a stark reminder of the potential for corruption within government contracting and the devastating consequences of prioritizing personal gain over environmental protection. The EPA continues to monitor the affected sites at Keehi Lagoon and Pearl Harbor, assessing the extent of the contamination and implementing remediation efforts. The incident highlights the critical need for robust oversight and stringent enforcement of environmental regulations to prevent similar occurrences in the future.

Key Facts

  • Defendant: John T. Frederick, Jr.
  • Location: Keehi Lagoon & Pearl Harbor Naval Base, Hawaii
  • Year: 2003
  • Crime: Fraud, Illegal Hazardous Waste Disposal
  • Laws Violated: 18 U.S.C. 208, 41 U.S.C. 53, 41 U.S.C. 54
  • Penalty: 36 months probation, 100 hours community service, $10,200 in fines and assessments
  • Frederick directed the illegal dumping of lead and zinc chromate.

Source: EPA ECHO Enforcement Case Database

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