Mulberry, FL – A former plant manager and the company he oversaw were convicted in 1998 of defrauding customers and violating federal environmental regulations at a petroleum-contaminated soil treatment facility. Riad Barakat Alkhatib, former plant manager of Specialty Environmental, Inc., and the company itself, pled guilty to charges stemming from a scheme to bypass critical pollution control equipment and falsely assure clients of environmentally sound practices.
Specialty Environmental, Inc., operated a facility in Mulberry, Florida, designed to treat contaminated soil using a rotary kiln. The process required an afterburner operating at a minimum of 1500 degrees Fahrenheit to eliminate harmful pollutants. However, investigators discovered that Alkhatib and other employees intentionally disabled a safety cutoff switch by installing a jumper wire. This allowed the kiln to continue processing soil even when the afterburner failed to reach the legally mandated temperature, resulting in the release of untreated pollutants into the atmosphere.
The scheme wasn’t merely a technical violation; it was a deliberate deception. Specialty Environmental actively marketed its services by guaranteeing adherence to all environmental laws, attracting clients who relied on this assurance. Prosecutors argued that the company knowingly misrepresented its capabilities, prioritizing profit over environmental responsibility and potentially exposing the public to hazardous emissions. The falsification of operational data and the circumvention of required monitoring systems formed the core of the criminal case.
Alkhatib was initially charged with four counts: three counts of wire fraud (18 U.S.C. 1341) and one count of violating the Clean Air Act (42 U.S.C. 7412(c)(2)(C)). He ultimately pled guilty to all charges. Simultaneously, Specialty Environmental, Inc. faced identical charges and also entered a guilty plea. The investigation revealed a pattern of non-compliance extending beyond the afterburner issue, encompassing numerous permit violations throughout the facility’s operations.
Sentencing and Penalties
On November 6, 1998, Specialty Environmental, Inc. was sentenced to five years of probation and ordered to pay a substantial federal fine of $500,000. Just days later, on November 20, 1998, Alkhatib received a sentence of 60 months probation, but was not subjected to a financial penalty. While both entities admitted guilt, the lack of a fine for Alkhatib has drawn some scrutiny over the years, though legal experts at the time noted the company bore the brunt of the financial repercussions.
Key Facts
- Defendant: Riad Barakat Alkhatib & Specialty Environmental, Inc.
- Location: Mulberry, Florida
- Year: 1999 (charges filed in 1998)
- Statutes Violated: 42 U.S.C. 7412(c)(2)(C) (Clean Air Act – falsifying monitoring data) and 18 U.S.C. 1341 (Wire Fraud)
- Scheme: Bypassing afterburner safety cutoff switch to operate kiln with insufficient pollution control.
- Penalty: Specialty Environmental – 60 months probation & $500,000 fine. Alkhatib – 60 months probation.
This case serves as a stark reminder of the consequences of environmental fraud and the importance of adhering to regulations designed to protect public health and the environment. The GrimyTimes will continue to follow cases of environmental crime and hold polluters accountable.
Source: EPA ECHO Enforcement Case Database
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