Michael J. Conrad, Making False Statements, California 2015

Escondido chemist Michael J. Conrad has been sentenced for a scheme to deceive the Environmental Protection Agency (EPA), stemming from a prior 2012 conviction of his company, Asgard Associates, LLC, for illegal hazardous waste storage. Conrad pleaded guilty to one count of making false statements (18 U.S.C. 1001(a)(3)) after submitting fabricated documents to the EPA in an attempt to avoid debarment from receiving federal contracts and grants.

The case, investigated by the EPA’s Office of Inspector General and criminal enforcement program, revealed a deliberate effort by Conrad to conceal his involvement in Asgard’s previous environmental violations. In 2012, Asgard was sentenced to three years of probation and ordered to pay over $175,000 in restitution for the improper storage of hazardous materials at a San Diego facility. Following the conviction, the EPA initiated debarment proceedings against Conrad, leading to the submission of the fraudulent documentation.

Prosecutors detailed how Conrad constructed a complex web of falsehoods, including fabricated letters and emails, designed to portray a limited role in Asgard’s operations. He falsely claimed no knowledge or communication with members of the Asgard Board of Directors, despite being a key figure and signatory on company documents. He even invented individuals – “Laura Ertmann” and “Jean French” – to support his fabricated narrative in emails that contained demonstrably false date headers, such as a Monday date falling on a Friday.

The deception extended to misrepresenting the history of hazardous waste removal at the Roselle Street facility, claiming a complete cleanup occurred in 2006 when no such action had been taken. Conrad also attempted to distance himself from the individual who signed the Asgard plea agreement, falsely asserting a familial relationship and a deceased brother, when, in fact, his brother was alive and the actual signatory. These actions were calculated to mislead the EPA’s Suspension and Debarment Office and maintain eligibility for federal contracts.

Table of Contents

Key Facts

Defendant: Michael J. Conrad
Charge: Making False Statements (18 U.S.C. 1001(a)(3))
Prior Conviction: Asgard Associates, LLC, convicted of illegal hazardous waste storage in 2012.
Fraudulent Activity: Submission of falsified documents to the EPA to avoid debarment.
Impact: Wasted approximately 400 EPA man-hours and $23,426 in resources.
Sentence: Five years probation, six months home detention, 100 hours community service, $23,436 fine.

“Submitting false statements to the government is a serious offense,” stated Joe Gonzales, Acting Special Agent in Charge of the EPA OIG San Francisco Field Office. Jay M. Green, Special Agent in Charge of EPA’s criminal enforcement program in California, emphasized that the case highlighted the importance of truthful information in government dealings, particularly given the hazardous nature of the original environmental crime. The wasted government resources and deliberate attempt to obstruct justice were key factors in the prosecution.

Conrad was sentenced to a five-year term of probation, including six months of home detention, 100 hours of community service, and a $23,436 fine, representing the cost of the wasted EPA man-hours. The case serves as a stark warning that attempts to circumvent environmental regulations and deceive federal agencies will be met with vigorous prosecution.

Source: EPA ECHO Enforcement Case Database

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