SAN FRANCISCO, CA – Peiwen Zhou, 55, of Palo Alto, California, has been sentenced to five years of probation following a guilty plea to federal charges stemming from the illegal transportation of hazardous materials and failure to properly declare toxic substance imports. Zhou, the former CEO and President of AK Scientific, Inc. of Union City, California, admitted to systemic failures in company safety protocols that put the public and workers at risk.
According to court documents, Zhou knowingly failed to adequately train AK Scientific employees on regulations outlined in the Hazardous Materials Transportation Act (HMTA). This negligence resulted in numerous shipments of hazardous materials being sent without proper labeling, marking, or identification – critical safeguards to alert handlers to the dangerous contents. The investigation, a collaborative effort between the U.S. Environmental Protection Agency (EPA), the U.S. Department of Transportation’s Office of Inspector General (DOT-OIG), and Homeland Security Investigations, revealed a pattern of disregard for safety standards.
The violations extended beyond transportation. Zhou also pleaded guilty to failing to comply with the Toxic Substances Control Act (TSCA), specifically by neglecting to file necessary import certifications for chemical substances entering the United States. A particularly concerning instance involved the shipment of 1,2-dibromoethane from China, which was mislabeled in an attempt to circumvent regulatory scrutiny. This deliberate act underscored a broader pattern of deception and a willingness to prioritize profit over public safety.
Federal prosecutors emphasized the severity of the offenses, highlighting the potential for catastrophic consequences had these improperly handled materials been involved in an accident or released into the environment. U.S. Attorney Brian J. Stretch stated that the regulations violated were “designed to keep the public safe from hazardous materials and toxic substances,” and that the office is “committed to prosecuting those who flaunt them.” EPA Administrator Scott Pruitt, at the time of the plea, echoed this sentiment, asserting that the illegal activities represented “a clear threat to public safety.”
Penalties & Agreement
As part of the plea agreement, Zhou was sentenced to five years of probation, requiring 200 hours of community service, including 100 hours dedicated to presenting on the nature of his crimes at industry trade shows. He was also ordered to pay a total criminal fine of $40,000, along with a $125 special assessment, and permanently resigned from his position at AK Scientific. The company itself entered into a deferred prosecution agreement, agreeing to pay a $100,000 fine and retain an independent monitor to ensure future compliance with safety regulations. If AK Scientific adheres to the terms of the agreement for three years, the charges against the company will be dismissed.
Key Facts
- Defendant: Peiwen Zhou
- Company: AK Scientific, Inc.
- Location: California
- Year: 2018
- Statutes Violated:
- Resource Conservation and Recovery Act (RCRA) – 15 U.S.C. 2614
- Toxic Substances Control Act (TSCA) – 15 U.S.C. 2615
- Hazardous Materials Transportation Act (HMTA) – 49 U.S.C 5124
- Penalties: Zhou received 5 years probation, $40,000 fine, and resigned from AK Scientific. AK Scientific agreed to a $100,000 fine and independent monitoring.
- Specific Violation: Failure to properly train employees, improperly labeling hazardous material shipments, and failing to file TSCA import certifications.
The case serves as a stark reminder of the critical importance of adhering to environmental and safety regulations, and the consequences faced by those who prioritize profit over the well-being of the public and the environment. Investigators say this case underscores the need for vigilance in the import and handling of potentially dangerous substances.
Source: EPA ECHO Enforcement Case Database
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