Wilmington, DE – Former International Petroleum Corporation (IPC) branch manager Lance Charen was sentenced in October 2017 to one year and one day in federal prison, followed by six months of supervised release, for his role in a decade-long scheme to falsify environmental reports and illegally dispose of hazardous waste. The case, investigated by the U.S. Environmental Protection Agency (EPA) Criminal Investigation Division, reveals a deliberate effort to circumvent environmental regulations and defraud both the City of Wilmington and federal authorities.
Between 1992 and 2012, IPC operated a facility in Delaware processing used oil and hydrocarbon-containing wastewater. The facility reprocessed petroleum for reuse, generating wastewater that required treatment before being discharged to the city’s publicly owned treatment works (POTW). While the facility held a pretreatment permit outlining acceptable pollutant levels, Charen and then-plant manager John Lowery conspired to manipulate sampling procedures to appear compliant with regulations.
According to court documents, in October 2011, Charen and Lowery directed IPC employees to intentionally slow down the wastewater treatment process. This manipulation allowed them to collect samples that falsely indicated the facility was meeting permit requirements. The scheme was designed to avoid costly upgrades and potential shutdowns. The EPA’s investigation uncovered evidence that these fraudulent reports were submitted to the City of Wilmington on a monthly basis, misleading officials about the true environmental impact of the facility’s operations.
Beyond Water Pollution: Hazardous Waste Violations
The criminal activity extended beyond falsifying water quality data. IPC also violated the Resource Conservation and Recovery Act (RCRA) by improperly transporting hazardous waste. In June and July of 2012, approximately 500,000 pounds of “tank bottoms” – sludge accumulated in storage tanks – were shipped to a disposal facility in South Carolina *without* the legally required hazardous waste manifest. This omission is a serious RCRA violation, as it eliminates the tracking of hazardous materials and poses significant environmental risks.
Co-Conspirators Sentenced
Charen wasn’t the only one facing consequences. John Lowery received a one-year term of probation after pleading guilty to tampering with Clean Water Act monitoring. Ricky Mitchell, a former plant manager, also pleaded guilty to conspiracy to violate the Clean Water Act and a substantive CWA charge, receiving a one-year probationary sentence. IPC itself pleaded guilty in February 2017 and was ordered to pay a $1.3 million fine and $2.2 million in restitution to the City of Wilmington.
Key Facts
- Defendant: Lance Charen
- Statutes Violated: Clean Water Act (33 U.S.C. 1319(c)(4)), Resource Conservation and Recovery Act (42 U.S.C. 6928(d)), Title 18 U.S. Criminal Code (18 U.S.C 371)
- Location: Delaware
- Years of Operation: 1992 – 2012
- Illegal Activity: Falsifying wastewater discharge reports, illegal transportation of hazardous waste.
- Penalties: Charen – 1 year + 1 day imprisonment, 6 months supervised release. IPC – $1.3 million fine, $2.2 million restitution.
The investigation, which also included assistance from the City of Wilmington Department of Public Works and the Delaware Department of Natural Resources, highlights the EPA’s ongoing commitment to prosecuting environmental crimes and holding polluters accountable. The case serves as a stark reminder that manipulating environmental data and improperly handling hazardous waste carry severe legal and financial repercussions.
Source: EPA ECHO Enforcement Case Database
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