SAN FRANCISCO, CA – A California woman was sentenced to federal prison in 2004 after pleading guilty to a sophisticated scheme defrauding companies required to monitor their wastewater discharge. Regina Coleman systematically falsified environmental compliance data, billing clients for services never rendered and submitting fabricated reports to state regulators.
The investigation, led by the Environmental Protection Agency’s (EPA) Criminal Investigation Division, revealed that Coleman operated a fraudulent sampling service. Companies are legally obligated to regularly test wastewater effluent – the water released from industrial processes – and report the results to the California Water Board. Coleman falsely claimed to collect these samples and submit them for analysis at a certified laboratory. However, investigators discovered that Coleman routinely visited client sites with a non-functional ISCO monitor – a device used for automated water sampling – merely *pretending* to collect data.
Instead of genuine sampling, Coleman would fabricate the analytical results on her computer. These falsified reports were then provided to her clients, who unknowingly submitted them as part of their official Discharge Monitoring Reports (DMRs) to the Water Board. This allowed the companies to appear compliant with environmental regulations when, in reality, no valid data existed. The scheme spanned a considerable period, allowing Coleman to profit from deception.
Charges and Sentencing
On June 4, 2003, Coleman was initially charged with 33 counts of violating Title 18 U.S. Criminal Code, specifically 18 U.S.C. §1341, which covers schemes and artifices to defraud. This federal statute prohibits the use of the U.S. mail to facilitate fraudulent activities. The charges stemmed from the invoices Coleman sent to her clients for the fabricated services, and the subsequent payments received through the mail.
Coleman ultimately pled guilty to three counts of mail fraud on February 23, 2004. The court sentenced her to 15 months of incarceration, followed by a 36-month period of supervised probation. Furthermore, Coleman was ordered to pay restitution totaling $303,963 to the companies she defrauded, compensating them for the cost of the fictitious services and the potential environmental liabilities stemming from the false reporting.
Implications & Regulatory Scrutiny
This case highlights the critical importance of accurate environmental monitoring and the potential consequences of falsifying data. The EPA emphasized that such fraudulent activities not only undermine environmental protection efforts but also erode public trust in the regulatory system. Following the conviction, the Water Board initiated a review of DMRs submitted by Coleman’s former clients to assess the extent of the damage and ensure compliance.
Key Facts
- Defendant: Regina Coleman
- State: California
- Year: 2004
- Statute Violated: 18 U.S.C. §1341 (Mail Fraud)
- Sentence: 15 months incarceration, 36 months probation
- Restitution: $303,963
- Method: Falsified wastewater sampling reports and billed clients for nonexistent services.
Source: EPA ECHO Enforcement Case Database
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