San Diego, CA – A former manager at California cannabis processing company WellgreensCA, Inc. has been sentenced for her role in an illegal hazardous waste dumping scheme, according to court documents unsealed this week. Nadia Malloian, 27, was ordered to pay a $15,000 fine, complete a three-year term of probation, and $26,482 in restitution to multiple California state agencies.
The case, investigated by the Environmental Protection Agency’s (EPA) Criminal Investigation Division, revealed that WellgreensCA generated significant quantities of hazardous waste – specifically, waste ethanol – during the extraction of oils from cannabis. As a large quantity generator, the company was legally obligated to properly transport and dispose of this waste off-site, utilizing a detailed hazardous waste manifest system to track its journey. Instead, between February and June 2018, Malloian, along with company owner Lunar Louissa, allegedly conspired to circumvent these regulations.
Investigators determined that WellgreensCA paid an individual identified only as R.U. (who has since died) to illegally dump drums of the flammable waste ethanol behind various buildings in the San Diego area. The scheme unraveled in May 2018 when R.U. abandoned several drums behind a local supermarket, along with accompanying laboratory reports. A vigilant supermarket employee alerted authorities, who were able to trace the waste – and the laboratory reports – back to WellgreensCA. This discovery triggered a full investigation by both state and federal environmental agencies.
Legal Ramifications
Malloian was convicted of violating Title 18 U.S. Criminal Code, and the Resource Conservation and Recovery Act (RCRA). Specifically, she was found to have violated 42 U.S.C. 6928(d)(5) and 18 U.S.C. 3, pertaining to the improper disposal of hazardous waste and knowingly concealing a crime. The RCRA is a cornerstone of environmental law, designed to protect human health and the environment by regulating the generation, transportation, treatment, storage, and disposal of hazardous waste.
Company & Owner Penalized
WellgreensCA, Inc. was also sentenced, receiving a $45,000 fine and being jointly responsible for the $26,482 restitution. Lunar Louissa, the company owner, received three years of probation, a $1,000 fine, and was also held liable for the full restitution amount. The restitution funds will be 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 investigation.
Key Facts
- Defendant: Nadia Malloian, WellgreensCA, Inc., Lunar Louissa
- Crime: Illegal Hazardous Waste Disposal
- Location: San Diego, California
- Year: 2022 (regarding sentencing, violations occurred in 2018)
- Waste Type: Ignitable waste ethanol
- Laws Violated: Title 18 U.S. Criminal Code, 42 U.S.C. 6928(d)(5), 18 U.S.C. 3
- Penalties: Fines totaling $61,000, $26,482 restitution, 3 years probation
- Deceased co-conspirator: R.U.
This case serves as a stark reminder of the serious legal and environmental consequences associated with improper hazardous waste management. The EPA continues to prioritize the enforcement of environmental laws to safeguard public health and the environment, and will aggressively pursue those who attempt to cut corners at the expense of both.
Source: EPA ECHO Enforcement Case Database
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