Whitehall, PA – Michael Klusaritz was sentenced to 21 months in federal prison in September 2005 for orchestrating a fraudulent scheme involving falsified underground storage tank (UST) closure reports. While employed at Boyko’s Petroleum Services, Inc., Klusaritz systematically fabricated data and forged signatures on reports submitted to both clients and the Pennsylvania Department of Environmental Protection (DEP) between 2001 and 2003.
The scheme involved preparing and submitting reports that falsely indicated proper closure of USTs after removal. These falsified reports included fabricated laboratory analyses, leading Boyko’s customers to be overbilled by more than $110,000 for services that were not actually performed or accurately reflected. The fraudulent documentation created the illusion of environmental compliance, potentially masking serious risks of groundwater contamination.
Federal investigators determined Klusaritz deliberately misled clients and regulators, prioritizing profit over environmental safety and regulatory adherence. The submitted reports were critical for demonstrating compliance with environmental regulations, and their falsification undermined the DEP’s ability to properly assess and address potential environmental hazards. Sources close to the investigation indicate the case was complex, requiring forensic accounting to untangle the web of fraudulent billing practices.
Legal Ramifications
Klusaritz was initially charged on March 16, 2005, with one count of mail fraud (18 U.S.C. 1341) and two counts of making false statements (18 U.S.C. 1001). He subsequently pleaded guilty to all charges on May 31, 2005. The mail fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine. Each count of making false statements carries a maximum sentence of five years in prison and a $250,000 fine.
Ultimately, Klusaritz received a 21-month prison sentence, and was ordered to pay $112,220.16 in restitution to the 43 clients of Boyko Petroleum Services who were defrauded by the scheme. He also received 36 months of probation following his release. The restitution order aims to compensate the victims for the financial losses incurred as a result of Klusaritz’s actions.
A Pattern of Offenses
This wasn’t Klusaritz’s first brush with the law concerning environmental crimes. Records indicate a prior conviction for similar offenses dating back to Fiscal Year 1997, suggesting a pattern of disregard for environmental regulations and a willingness to engage in fraudulent practices. Investigators are revisiting older cases to determine if other instances of falsification exist.
Key Facts
- Defendant: Michael Klusaritz
- Location: Whitehall, Pennsylvania
- Years Active: 2001-2003
- Scheme: Falsified UST closure reports for Boyko’s Petroleum Services clients.
- Financial Impact: Over $110,000 in fraudulent billing to clients.
- Laws Violated: 18 U.S.C. 1001 (False Statements), 18 U.S.C. 1341 (Mail Fraud)
- Sentence: 21 months incarceration, $112,220.16 restitution, 36 months probation.
- Prior Record: Previous environmental crime conviction in FY97.
Source: EPA ECHO Enforcement Case Database
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