Greenville, SC – Nancy Marie Stein, 62, of Anderson, South Carolina, was sentenced to 73 months in federal prison on February 2, 2015, following a complex investigation by the U.S. Secret Service and the Environmental Protection Agency (EPA). Stein, the former operator of American Screw and Rivet Corporation (ASR), pled guilty in December 2013 to charges of bank fraud and the unlawful storage of hazardous waste, bringing an end to a scheme that spanned nearly a decade.
The investigation revealed that Stein orchestrated an elaborate fraud targeting numerous financial institutions between 2004 and 2011. She created a network of fictitious companies—including fake manufacturing firms and an accounting firm issuing fraudulent audits—to secure loans for ASR. These loans were often based on false invoices for non-existent machinery, with funds diverted to the sham entities. Stein even went so far as to swap legitimate serial numbers on existing equipment with those of the fabricated machines to bolster the deception. The scheme ultimately unraveled when ASR was forced into involuntary bankruptcy in 2011, triggering an investigation by the Secret Service.
The financial impact of Stein’s fraud was significant, with at least 26 financial institutions identified as victims, suffering cumulative losses exceeding $16 million. According to court documents, Stein admitted full responsibility for the fraudulent activities during a statement to the Secret Service. The U.S. Attorney’s Office secured a restitution order of $17,692,974 to compensate the defrauded institutions.
Environmental Violations
Alongside the financial crimes, Stein and ASR were also found to have illegally stored large quantities of hazardous waste at their Anderson facility without obtaining the necessary permits from the South Carolina Department of Health and Environmental Control (DHEC) or the EPA. For years, the company generated hazardous waste as a byproduct of its manufacturing process, failing to comply with environmental regulations. A DHEC search in June 2011 uncovered a substantial amount of uncontained, flammable, and corrosive waste exposed to the elements.
The EPA was subsequently tasked with removing and disposing of over 24,000 gallons of hazardous waste from the ASR property, incurring costs of approximately $1.72 million. Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in South Carolina, emphasized the seriousness of the environmental violations, stating that the sentencing “shows that those who refuse to comply with the law, putting public health and the environment at risk, will face the consequences in court.”
American Screw and Rivet Corporation was also sentenced to five years of probation and ordered to contribute to the restitution payments. The case was prosecuted by Assistant U.S. Attorney William C. Lucius of Greenville. The investigation highlights the intersection of financial crime and environmental negligence, demonstrating the far-reaching consequences of corporate misconduct.
Key Facts
- Defendant: Nancy Marie Stein & American Screw and Rivet Corporation
- Statutes Violated: 18 U.S.C. §1344 (Bank Fraud), 42 U.S.C. §6928(d)(2)(A) (Resource Conservation and Recovery Act)
- Sentence: Nancy Stein – 73 months imprisonment; ASR – 5 years probation
- Restitution: $17,692,974
- Financial Loss to Victims: Over $16 million
- Environmental Damage: Over 24,000 gallons of hazardous waste illegally stored, requiring $1.72M EPA cleanup
Source: EPA ECHO Enforcement Case Database
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