San Diego, CA – A former manager at California cannabis processing company WellgreensCA, Inc. has been sentenced for her role in an illegal hazardous waste disposal scheme, according to records unsealed this week. Nadia Malloian was ordered to pay a $15,000 fine, complete a three-year term of probation, and $26,482 in restitution to cover cleanup costs incurred by multiple California state agencies.
The case, investigated by the Environmental Protection Agency (EPA) Criminal Investigation Division, revealed that between February and June of 2018, WellgreensCA generated significant quantities of hazardous waste – specifically, waste ethanol in 55-gallon drums – as a byproduct of its cannabis oil extraction process. As a large quantity generator, the company was legally obligated to properly transport and dispose of this waste using a detailed hazardous waste manifest system. Instead, Malloian, along with company owner Lunar Louissa, colluded to circumvent regulations by hiring an individual identified as “R.U.” to illegally dump the waste.
Investigators discovered that R.U. was paid to transport the drums of ignitable hazardous waste and deposit them behind various buildings throughout San Diego County. The scheme unraveled in May 2018 when R.U. abandoned several drums behind a local supermarket, along with laboratory reports linking the waste back to WellgreensCA. A vigilant supermarket employee alerted authorities, initiating an investigation that quickly traced the source of the hazardous materials.
Legal Ramifications
Malloian’s sentencing on October 27, 2021, marks the culmination of a federal criminal enforcement action. She was found to have violated Title 18 U.S. Criminal Code, specifically in conjunction with the Resource Conservation and Recovery Act (RCRA). The specific statutes violated were 42 U.S.C. 6928(d)(5) and 18 U.S.C. 3. These laws prohibit the knowing endangerment of individuals and the environment through the improper handling and disposal of hazardous waste.
Company and Owner Also Penalized
WellgreensCA, Inc. also faced penalties for its role in the scheme, receiving a $45,000 fine and being jointly responsible for the $26,482 in restitution. Lunar Louissa, the company owner, was sentenced to three years of probation and ordered to pay a $1,000 fine, in addition to her share of the restitution. The restitution funds were distributed to the San Diego County Department of Environmental Health Services, the California Department of Toxic Substances Control, and the California Department of Transportation to cover the costs associated with the cleanup and remediation of the illegally dumped waste.
Key Facts
- Defendant: Nadia Malloian, WellgreensCA, Inc., Lunar Louissa
- Crime: Illegal disposal of hazardous waste (waste ethanol)
- Location: San Diego County, California
- Year: 2018 (disposal), 2022 (sentencing)
- Laws Violated: Title 18 U.S. Criminal Code, Resource Conservation and Recovery Act (RCRA) – 42 U.S.C. 6928(d)(5), 18 U.S.C. 3
- Penalties: Malloian – $15,000 fine, 3 years probation, $26,482 restitution. WellgreensCA – $45,000 fine, $26,482 restitution. Louissa – $1,000 fine, 3 years probation, $26,482 restitution.
- Method: Paid individual (R.U. – deceased) to dump waste behind buildings.
The EPA continues to emphasize the importance of proper hazardous waste management and warns that those who violate environmental regulations will face criminal prosecution. This case serves as a stark reminder that cutting corners on environmental compliance can lead to significant financial penalties and lasting damage to public health and the environment.
Source: EPA ECHO Enforcement Case Database
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