Upstate New York was the site of a widespread fraud scheme orchestrated by employees of AAR Contractors, Inc., an asbestos abatement company, that stretched from 2000 to 2006 and resulted in multiple federal convictions. The scheme involved the creation of falsified laboratory analyses, designed to deceive clients and regulators regarding the presence – or lack thereof – of hazardous asbestos materials.
The investigation, led by the Environmental Protection Agency (EPA) and federal prosecutors, uncovered a conspiracy to defraud victims by providing inaccurate reports. Initial charges were filed in February 2000 against several individuals, including Hall, who quickly pled guilty to conspiracy to violate the Clean Air Act and commit mail fraud. The web of deceit began to unravel as more employees were implicated, facing charges ranging from making false statements to negligent violations of environmental regulations.
By 2002, Mongato, Lindquist, and Dimaio were all charged with various counts, quickly followed by guilty pleas. Alvord and O’Brey also admitted to their roles in the conspiracy, specifically violating the Clean Air Act. These early convictions established the pattern of fraudulent activity within AAR Contractors, revealing a systematic effort to cut corners and prioritize profit over public safety. The falsified reports allowed the company to claim successful asbestos abatement when, in reality, dangerous materials may have remained, exposing individuals to significant health risks.
The case took a further turn in January 2005 with the indictment of Kevin Pilgrim, also known as Andy Pilgrim. Pilgrim was accused of not only conspiring to obstruct justice but also of committing perjury during the trial of other AAR Contractors employees. He was found to have corruptly influenced witnesses, attempting to sway their testimony and conceal the truth about the fraudulent practices. This obstruction of justice charge highlighted the lengths to which those involved were willing to go to protect themselves and the company.
Sentencing for the various defendants took place throughout 2006. Dimaio received a 42-month prison sentence, followed by 24 months of probation and a $200 fine. Pilgrim received 10 months incarceration, 24 months probation and a $100 fine. Mongato was sentenced to 18 months in prison, with 24 months of probation and a $300 fine. Hall received 8 months incarceration, 24 months probation and a $100 fine. Lindquist faced a 30-month prison term, 24 months probation and a $400 fine. Alvord and O’Brey each received 15 months imprisonment, 24 months probation, 200 hours of community service, and fines of $400 and $300 respectively. These penalties reflect the seriousness of the offenses and the deliberate nature of the fraud.
Key Facts
- Defendant: Kevin Pilgrim (aka Andy Pilgrim) and multiple AAR Contractors employees
- Crime: Conspiracy to defraud, falsifying laboratory analyses, obstruction of justice, perjury, and violations of the Clean Air Act.
- Location: Upstate New York
- Years Active: 2000-2006
- Statutes Violated: 18 U.S.C. 1623 (Perjury), 18 U.S.C. 1001 (False Statements), 42 U.S.C. 7413 (Clean Air Act), 15 U.S.C. 1512(k) (Obstruction of Justice), 18 U.S.C. 371 (Conspiracy)
- Penalties: Sentences ranged from 8 months to 42 months imprisonment, plus probation and fines ranging from $100 to $400.
The AAR Contractors case serves as a stark reminder of the potential consequences of environmental fraud and the importance of accurate reporting in asbestos abatement. It also demonstrates the EPA’s commitment to pursuing and prosecuting those who knowingly endanger public health and safety for financial gain.
Source: EPA ECHO Enforcement Case Database
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