Tonawanda, NY – A decades-old case of illegal hazardous waste disposal and bankruptcy fraud involving Envirotek, Ltd. has resurfaced as a stark reminder of the risks posed by unscrupulous operators in the environmental sector. Richard I. Johnson, Sr., the owner and controlling figure of Envirotek, along with his son, Richard I. Johnson, Jr., and associates Joan Chuba and Joseph Rosinski, were embroiled in a complex scheme that defrauded both environmental regulations and the bankruptcy system.
Envirotek, incorporated and authorized to operate as a treatment-storage-disposal (TSD) facility in Tonawanda, presented a façade of legitimate environmental services. However, a 21-count indictment filed in February 1992 revealed a pattern of illegal treatment, storage, and disposal of hazardous wastes, violating the Resource Conservation and Recovery Act (RCRA). The indictment alleged that the Johnsons conspired to flout federal environmental laws (18 U.S.C. 371) and knowingly made false statements (18 U.S.C. 1001) to authorities.
The scheme extended beyond environmental violations. The indictment also charged the Johnsons and Chuba with conspiracy to commit bankruptcy fraud (18 U.S.C. 1623, 18 U.S.C. 152), suggesting an attempt to shield assets from creditors while operating the illegal waste facility. Joseph Rosinski was implicated as a close associate of Johnson, Sr., allegedly aiding in the illicit disposal practices. While Rosinski’s direct legal outcome isn’t detailed in available records, his connection highlights the network involved in the operation.
After years of legal proceedings, convictions were secured in January 1996. Richard I. Johnson, Jr. pled guilty to one count of RCRA violation and was convicted on one count of conspiracy to commit bankruptcy fraud, one count of bankruptcy fraud, and one count of false declarations before a Grand Jury. His father, Richard I. Johnson, Sr., was convicted on one count of conspiracy to commit bankruptcy fraud and three counts of bankruptcy fraud, though the environmental charges against him were ultimately dismissed. Chuba was also found guilty of conspiracy to commit bank fraud and bankruptcy fraud.
Sentencing occurred on July 26, 1996. Richard I. Johnson, Jr. received a 30-month sentence on each count, along with a $200 special assessment and a substantial $1,355,800 in restitution. Richard I. Johnson, Sr. faced a 41-month sentence per count, a $200 special assessment, a $75,000 fine, and $87,136 in restitution. Chuba was sentenced to 24 months on each count, with a $100 special assessment, a $10,000 fine, and $50,000 in restitution. The significant financial penalties underscore the severity of the crimes and the attempt to profit from illegal activity.
Key Facts
- Defendant(s): Richard I. Johnson, Sr., Richard I. Johnson, Jr., Joan Chuba, Joseph Rosinski (associate)
- Company: Envirotek, Ltd.
- Location: Tonawanda, New York
- Statutes Violated: 18 U.S.C. 371 (Conspiracy), 42 U.S.C. 6928(d) (RCRA violation), 18 U.S.C. 1001 (False Statements), 18 U.S.C. 1623 & 18 U.S.C. 152 (Bankruptcy Fraud)
- Penalties: Sentences ranged from 24 to 41 months imprisonment, fines up to $75,000, and restitution totaling over $1.5 million.
- Nature of Crime: Illegal hazardous waste disposal disguised as legitimate treatment, storage, and disposal, coupled with bankruptcy fraud.
This case serves as a cautionary tale about the importance of strict regulatory oversight and vigorous enforcement of environmental laws. The deliberate circumvention of RCRA and the attempt to defraud the bankruptcy system demonstrate a blatant disregard for public health, safety, and the integrity of the legal system. While the convictions brought some measure of justice, the long-term environmental consequences of Envirotek’s actions remain a concern.
Source: EPA ECHO Enforcement Case Database
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