Mark Smith, Fraud, PA 2001

Little Rock, AR & Austin, TX – A widespread scheme to falsify underground storage tank (UST) testing results, potentially endangering groundwater supplies across multiple states, culminated in the sentencing of fifteen individuals in 2001, following a federal investigation. The case, originating in Pennsylvania but impacting testing operations in Arkansas and Texas, revealed a systematic effort to cut corners and submit fraudulent data to regulatory agencies.

The operation centered around three companies – AST in Little Rock, Arkansas; AUST in Austin, Texas; and ASTI, also in Little Rock. These firms were contracted to perform critical leak detection tests on USTs, as mandated by both federal and state environmental regulations under the Resource Conservation and Recovery Act (RCRA). The approved testing method, the Horner EZY-CHEK III, requires approximately three hours to complete accurately and with the proper equipment. However, investigators discovered employees were routinely circumventing the process, failing to conduct thorough tests and instead submitting fabricated results via mail and fax.

The fraudulent practices extended beyond simply shortening test durations. Employees deliberately falsified data related to line testing, a crucial component of ensuring tank integrity. By submitting inaccurate reports, the companies concealed potential leaks, potentially exposing communities to hazardous substances leaching into groundwater. The investigation, which unfolded over several years, involved multiple indictments and information charges, beginning with Mark Smith in June 1998 and continuing through 2000 with charges against a dozen additional individuals.

Mark Smith initially faced charges of false statements, conspiracy, and fraud. He ultimately pled guilty to the false statement charge. His wife, Dana Smith, pled guilty to conspiracy, while others like Finnell and Gordon initially faced conspiracy and fraud charges. The breadth of the conspiracy involved Kevin Moriarty, Doss, Wilson, Butler, Barron, Joseph Moriarty, two unnamed individual defendants, Becsey, and Ebel, all charged with conspiracy. Roth also faced a conspiracy charge.

Sentencing & Penalties

Sentencing varied based on the degree of involvement and guilty pleas. Mark Smith, Gordon, and Finnell each received five months of incarceration followed by 24 months of probation. Dana Smith received a lighter sentence of three months incarceration and 24 months probation. Butler and Roth received four months incarceration and 24 months probation. Kevin Moriarty and Ebel faced the most severe penalties, receiving 33 months incarceration and 36 months probation. Becsey was sentenced to 13 months incarceration and 24 months probation, while Joseph Moriarty, Wilson, and Doss each received 24 months probation. Barron was assessed a $500 federal fine.

Key Facts

• Defendants: Fifteen individuals associated with AST, AUST, and ASTI
• Location: Operations spanned Pennsylvania, Arkansas, and Texas.
• Years Active: The fraudulent scheme occurred throughout the 1990s.
• Statutes Violated: 18 U.S.C. 1001 (False Statements), 18 U.S.C. 1341 & 1343 (Mail and Wire Fraud), 18 U.S.C. 371 (Conspiracy)
• Method of Fraud: Falsifying results of underground storage tank leak detection tests.
• Potential Impact: Groundwater contamination due to undetected leaks.

The case serves as a stark reminder of the potential environmental and public health consequences of fraudulent practices within the environmental testing industry. Federal prosecutors emphasized the importance of accurate reporting to ensure the safety of communities and the protection of vital natural resources.

Source: EPA ECHO Enforcement Case Database

MORE FEDERAL CRIME NEWS

White Collar Crime

William O. Haff, Kickback Scheme, Texas 2016

Mar 31, 2016

White Collar Crime

Credit Suisse, Weak Resolution Plan, New York 2021

Feb 24, 2026

White Collar Crime

Karen Owens, Wire and Bank Fraud, New York 2024

Jun 11, 2019

White Collar Crime

Felix Gutierrez Valencia, Pesticide Smuggling, California 2021

Jun 18, 2021