Indianapolis, IN – In 2011, Michael R. Milem was sentenced to probation and fined for his role in a deliberate scheme to illegally discharge untreated, oily wastewater into the Indianapolis sewer system. The incident, stemming from a February 2009 rainfall, saw approximately 300,000 gallons of contaminated water escape the Environmental Systems Inc. (ESI) facility and seep into residential properties, coating yards in a thick, sludge-like substance.
The crisis began after homeowners reported the oily discharge following the heavy rain. ESI, a waste reclamation company, was legally obligated to possess adequate storage capacity to manage overflow during significant weather events. However, investigators discovered that ESI lacked this capacity. Instead of addressing the issue, Milem, along with co-defendant Snow, authorized the direct pumping of untreated wastewater into the city’s sewer system, bypassing the facility’s treatment processes entirely. This blatant disregard for environmental regulations resulted in significant contamination and public health concerns.
The investigation quickly broadened, revealing a pattern of long-term negligence and deception. ESI had reportedly failed to adequately treat waste from customers for a considerable period. Critical equipment, including pumps, was in disrepair or needed replacement, and the lack of sufficient storage exacerbated the problem. More disturbingly, investigators found evidence that ESI knowingly misrepresented its storage capacity to both the Environmental Protection Agency (EPA) and the Indiana Department of Environmental Management.
Deliberate Data Manipulation
Executive Vice President of Operations, Biggio, was also implicated in the cover-up. He pled guilty to charges related to falsifying data submitted to regulatory agencies. Biggio systematically “cherry-picked” wastewater samples, only reporting results that showed lower pollutant concentrations. Following rainfalls, samples were collected *after* dilution had occurred, artificially lowering reported pollution levels. This practice, combined with false statements made to authorities, was a deliberate attempt to conceal ongoing violations of environmental standards. The company’s official Spill Prevention, Control, and Countermeasure Plan falsely claimed a much larger storage capacity than actually existed.
Legal Ramifications
Milem and Snow were each charged with one count of violating the Clean Water Act (33 U.S.C. 1342(b)(8)). Biggio faced more severe charges, including two counts of violating the Clean Water Act (33 U.S.C. 1319(c)(2)(A)) for knowingly violating regulations, and one count of making false statements (18 U.S.C. 1001). All three defendants ultimately pled guilty. Milem, Snow, and Biggio each received 36 months of probation and were ordered to pay fines of $5,000, $5,000, and $15,000 respectively.
Key Facts
- Defendant: Michael R. Milem, Snow, and Biggio
- Location: Indianapolis, Indiana
- Incident Date: February 11, 2009 (discharge), 2011 (sentencing)
- Crime: Illegal discharge of untreated wastewater and falsification of environmental reports.
- Laws Violated: 18 U.S.C. 1001, 33 U.S.C. 1311(a), 33 U.S.C. 1342(b)(8)
- Contamination: Approximately 300,000 gallons of oily wastewater contaminated residential properties.
- Penalties: 36 months probation and fines ranging from $5,000 to $15,000.
This case serves as a stark reminder of the consequences of prioritizing profit over environmental responsibility. The deliberate actions of Milem, Snow, and Biggio not only violated federal law but also endangered the health and well-being of Indianapolis residents.
Readers can find further information in the EPA Press Release.
Source: EPA ECHO Enforcement Case Database
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