East Stroudsburg, PA – Phase II Laboratories, Inc. and its former director, have been convicted of federal crimes stemming from a widespread scheme to falsify environmental testing data. The case, brought by the Environmental Protection Agency (EPA) and investigated by federal authorities, reveals a deliberate effort to provide inaccurate analytical reports to wastewater treatment plants across the region, potentially jeopardizing public health and environmental safety.
The investigation centered around the practices of Klusaritz, who initially served as a laboratory director at Hess Environmental Laboratories. According to court documents, Klusaritz fabricated results for critical environmental tests – including Total Organic Halides, Volatile Organic Chemicals, and the Toxicity Characteristic Leaching Procedure – despite Hess lacking the necessary equipment or expertise to perform such analyses. Crucially, there was no evidence that Hess had subcontracted the work to a qualified laboratory, meaning the data was entirely manufactured.
These fraudulent reports were then submitted by multiple wastewater treatment plants as part of their Discharge Monitoring Reports (DMRs), official documentation required by the Clean Water Act to demonstrate compliance with environmental regulations. The falsified data allowed these plants to appear compliant when they may not have been, potentially leading to the release of untreated or inadequately treated wastewater into local waterways. After leaving Hess, Klusaritz established Phase II Laboratories, continuing the practice of providing false analytical results.
Legal Ramifications
On June 19, 1997, both Phase II Laboratories and Klusaritz were formally charged with a litany of federal offenses. Specifically, the charges included making false statements (18 U.S.C. 1001), committing fraud (18 U.S.C. 1341), and making fraudulent claims (18 U.S.C. 287) – all in violation of federal law. Phase II Laboratories ultimately pled guilty to one count of each of the aforementioned charges. Klusaritz entered a guilty plea to two counts of making fraudulent claims, one count of making false statements, and three counts of committing fraud.
Sentencing and Restitution
The sentencing phase of the case concluded on October 28, 1997. Klusaritz received a 12-month prison sentence, followed by a 36-month probationary period. Furthermore, the court ordered both Phase II Laboratories and Klusaritz to be jointly and severally liable for $40,000 in restitution, intended to cover the costs associated with investigating and rectifying the damage caused by the fraudulent reporting. The EPA has indicated this case underscores the agency’s commitment to holding accountable those who attempt to circumvent environmental regulations through deceitful practices.
Key Facts
- Defendant: Phase II Laboratories, Inc. and Klusaritz
- Location: East Stroudsburg, Pennsylvania
- Years Active: 1997-1998
- Laws Violated: 18 U.S.C. 1001 (False Statements), 18 U.S.C. 1341 (Fraud), 18 U.S.C. 287 (Fraudulent Claims), Clean Water Act
- Penalties: 12 months incarceration and 36 months probation for Klusaritz, $40,000 restitution (jointly and severally liable) for both defendants.
- Method: Falsified environmental testing reports submitted as DMRs.
This case serves as a stark reminder of the potential consequences of environmental fraud and the importance of accurate data reporting in protecting public health and the environment. GrimyTimes will continue to follow developments related to environmental crimes and hold those responsible accountable for their actions.
Source: EPA ECHO Enforcement Case Database
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