Chicago, IL – A Chicago contractor was sentenced to over a year in federal prison for a bizarre and costly scheme involving the illegal dumping of soap into the city’s sewer system. Nicholas Peregonow, 53, was sentenced on June 10, 2012, following a joint investigation by the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and the U.S. Postal Service Office of Inspector General (USPS-OIG).
The investigation revealed that Peregonow, contracted by the USPS, was systematically dumping approximately 1,900 gallons of unused soap each month down a drain at a three-story USPS parking structure located near Canal and Harrison Avenues. This practice, occurring since at least December 2009, resulted in significant foaming within the Metropolitan Water Reclamation District of Greater Chicago’s sewer system, posing a potential environmental hazard and incurring substantial cleanup costs.
The Scheme & Charges
Authorities allege Peregonow was not disposing of the soap through legitimate channels, instead opting for the illicit dumping method to avoid disposal fees. On December 15, 2010, Peregonow was formally charged with two counts of violating 18 U.S.C. 1341, relating to mail fraud, and one count of violating 18 U.S.C. 641, covering embezzlement and theft of government property. The charges stemmed from Peregonow’s misuse of funds intended for proper waste disposal.
Guilty Plea & Sentencing
Peregonow entered a guilty plea to all three counts, admitting to the illegal dumping and associated fraudulent activities. The plea allowed investigators to establish a clear pattern of intentional misconduct. At sentencing, Judge ordered Peregonow to 14 months incarceration for the fraud and embezzlement charges, to be served concurrently. He also received 38 months of probation, a $1,000 fine, and was ordered to pay restitution totaling $102,510 to cover the costs associated with the cleanup and damages caused by his actions.
Environmental & Financial Impact
The case highlights the potential for seemingly minor offenses to have significant environmental and financial repercussions. While the dumped soap itself wasn’t considered acutely toxic, the sheer volume created operational problems within the sewer system, requiring costly interventions. The USPS-OIG emphasized the importance of holding contractors accountable for responsible waste management and preventing the misuse of government funds.
Key Facts
- Defendant: Nicholas (Nick) Peregonow
- Location: Chicago, Illinois
- Timeframe: December 2009 – 2012
- Illegally Dumped: Approximately 1,900 gallons of soap monthly
- Statutes Violated: 18 U.S.C. 1341 (Fraud), 18 U.S.C. 641 (Embezzlement/Theft)
- Sentence: 14 months imprisonment, 38 months probation, $1,000 fine, $102,510 restitution
GrimyTimes will continue to follow this case and report on any further developments. The incident serves as a stark reminder of the ongoing need for vigilance and enforcement in environmental crime.
Source: EPA ECHO Enforcement Case Database
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