Kirk Hayward, Environmental Fraud, California 2015

Union City, CA – Kirk Hayward, former owner of Clearwater Environmental Management, Inc., and Charles Seaton, the company’s former vice president, have been sentenced for orchestrating a years-long scheme to defraud customers and illegally handle hazardous waste. The pair systematically falsified records and operated without proper licensing, exposing the public and environment to potentially dangerous conditions.

The Alameda County District Attorney’s Office, in partnership with the California Department of Toxic Substances Control (DTSC), brought the case to light, revealing a pattern of deceit that impacted several prominent organizations. Among Clearwater’s defrauded clients were Bay Area Rapid Transit (BART), Closure Solutions, Pape Machinery, and Recology. These entities contracted Clearwater to legally manage their hazardous waste, expecting compliant transportation, proper disposal, and accurate documentation – assurances the company demonstrably failed to deliver.

According to investigators, Hayward and Seaton continued their illegal activities even after Clearwater lost its hazardous waste transport registration in 2007. Hayward had previously been convicted and sentenced to jail time and a substantial fine for similar offenses. Undeterred, the pair circumvented regulations by fraudulently using the identity and license of another transporter on official waste manifests. They also routinely falsified disposal locations, claiming waste was sent to a facility in Silver Springs, Nevada, when it was, in fact, illegally consolidated, stored, or disposed of improperly.

“The defendants’ intentional and repeated crimes not only cheated Clearwater’s customers, but wholly undermined the integrity of environmental laws designed to protect public health and the environment,” stated District Attorney Nancy E. O’Malley. The DTSC echoed this sentiment, emphasizing the importance of strong enforcement and collaborative partnerships in combating hazardous waste crimes.

Sentencing and Restrictions

On July 29, 2015, Judge Dan Grimmer handed down the sentences. Kirk Hayward received a one-year jail sentence, five years of formal probation, and was ordered to pay miscellaneous fines. Crucially, the judge issued a permanent order barring Hayward from owning, managing, or consulting for any hazardous waste company. Charles Seaton received a four-month jail sentence, five years of formal probation, fines, and a ten-year ban from involvement in the hazardous waste industry.

Key Facts

• Defendants: Kirk Hayward, Charles Seaton
• Company: Clearwater Environmental Management, Inc.
• Location: Union City, California
• Statutes Violated: State environmental regulations related to hazardous waste management and falsification of records.
• Charges: Felony conspiracy
• Penalties: Hayward – 12 months jail, 5 years probation, lifetime ban from hazardous waste industry. Seaton – 4 months jail, 5 years probation, 10-year ban from hazardous waste industry.
• Victims: BART, Closure Solutions, Pape Machinery, Recology, and the public.
• Timeline: Charges filed February 10, 2014; Guilty pleas entered June 22, 2015; Sentencing July 29, 2015.

The case serves as a stark reminder of the serious consequences of environmental crimes and the crucial role of vigilant oversight in protecting both public health and the environment. Authorities say they remain committed to pursuing those who prioritize profit over responsible hazardous waste management.

Source: EPA ECHO Enforcement Case Database

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