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PCB-Filled Oil Scandal Lands NC Man Behind Bars
Benjamin Franklin Pass, 61, and P&W Waste Oil Services Inc. (P&W), of Leland, North Carolina were sentenced to hard time for their roles in the PCB-filled oil scandal. Pass was slapped with a 42-month prison sentence and ordered to pay restitution in the amount of $21,373,143.38 for clean-up costs associated with the environmental contamination at his business and an additional $538,857 to the Internal Revenue Service (IRS) for federal income taxes he failed to pay between 2002 and 2011.
Pass and the company previously pleaded guilty to crimes related to the unlawful handling and dilution of used oil contaminated with polychlorinated biphenyls (PCB). Pass also pleaded guilty to failure to pay taxes and P&W pleaded guilty to material false statements.
According to information in the public record, Pass owned and operated P&W’s facility in Leland, North Carolina. The facility is located approximately 500 feet to the east of the Cape Fear River and a federally recognized wetland.
P&W, however, was not authorized to transport, store, or handle used oil containing more than two parts per million (ppm) of PCBs. PCBs are man-made organic chemicals that were manufactured domestically from 1929 to 1979 and were used in hundreds of industrial and commercial applications, such as thermal insulation in electrical transformers and capacitors.
The court also ordered P&W to pay restitution in the amount of $21,373,143.38 for losses incurred by Colonial Oil and International Paper as a result of the defendants’ mishandling of used oil contaminated with PCBs that led to widespread contamination and millions of dollars in clean-up costs.
“Today’s sentence is just punishment for the defendant’s actions, which placed the health of North Carolina’s residents and their natural resources at risk,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “Environmental violations such as these are serious crimes, and the U.S. Attorney’s Offices will continue to vigorously prosecute those individuals and companies who ignore the laws Congress enacted to protect people and our environment from toxic substances like PCBs.”
Pass’s 42-month prison sentence is a stark reminder that environmental crimes will not be taken lightly. As U.S. Attorney Thomas G. Walker put it, “This disregard of environmental protections resulted in significant contamination. The defendant’s conduct placed an economic burden on the United States and an unreasonable risk to the health and safety of the citizens of North Carolina.”
Key Facts
- State: North Carolina
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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