Milton Delwyn Smith, Conspiracy to Defraud the United States, North Carolina 2012

Durham, NC – A North Carolina man has been sentenced to probation for his role in a widespread vehicle emissions fraud scheme that allowed hundreds of polluting vehicles to bypass required inspections. Milton Delwyn Smith, of Durham, was implicated in a conspiracy that falsified emissions reports, potentially impacting air quality in the region.

The scheme, uncovered through a joint investigation by the U.S. Environmental Protection Agency (EPA), the North Carolina State Bureau of Investigations, and the North Carolina Division of Motor Vehicles, centered around Express Auto Sales and Car Care Express Auto Sales and Services, both located in Durham. From March to July 2010, Smith conspired with licensed emissions inspector Clinton James Matthews to fraudulently pass vehicles that would have otherwise failed inspection. The pair reportedly accepted between $150 and $225 per vehicle.

The fraudulent process involved utilizing “surrogate vehicles” – typically older models manufactured between 1996 and 1999 – that wouldn’t register a vehicle identification number (VIN) when connected to the emissions analyzer. Matthews and Smith would input the VIN of the *customer’s* vehicle, but then generate an emissions report using the surrogate vehicle, effectively masking the true emissions output. This allowed vehicles with failing emissions systems to be registered as compliant.

Investigators determined that at least 817 vehicles were illegally passed using this method. The fraudulent reports were then electronically transmitted to the North Carolina Office of Information and Technology Services. This is particularly concerning as the EPA requires emissions testing in areas – like Durham – that exceed national standards for pollutants like carbon monoxide and ozone, aiming to improve public health and air quality.

Table of Contents

Toggle

Legal Ramifications

Smith was initially charged on June 4, 2012, with violating 18 U.S.C. 371 (conspiracy to defraud the United States) and 42 U.S.C. 7413(c)(2)(A) (making false statements in matters within the jurisdiction of the federal government, specifically related to the Clean Air Act). He pled guilty on August 6, 2012. Clinton James Matthews was similarly charged on August 2, 2012, and also pled guilty on October 1, 2012. Both men were sentenced on September 3, 2014, to 36 months of probation. Matthews was also ordered to pay a $1,300 fine.

Key Facts

Defendant(s): Milton Delwyn Smith, Clinton James Matthews
Location: Durham, North Carolina
Scheme Duration: March 2010 – July 2010
Number of Vehicles Involved: At least 817
Fraudulent Method: Using “surrogate vehicles” to generate false emissions reports.
Violated Statutes: 18 U.S.C. 371, 42 U.S.C. 7413(c)(2)(A)
Penalty: 36 months probation (both defendants), $1,300 fine (Matthews)

This case highlights the EPA’s commitment to enforcing the Clean Air Act and holding individuals accountable for actions that undermine environmental regulations. The investigation serves as a reminder that falsifying emissions data is a serious federal offense with potential consequences for public health and the environment.

Source: EPA ECHO Enforcement Case Database

Related Federal Cases