Middletown, RI – A decades-old case of environmental malfeasance involving shipyard operator Robert E. Derecktor and his company, Derecktor, Inc., came to light in 1987 following a sweeping federal indictment. The case, involving illegal disposal of hazardous materials and widespread pollution, resulted in substantial fines and probation for Derecktor and his corporation. The investigation revealed a pattern of deliberate disregard for environmental regulations, placing public health and Rhode Island’s ecosystem at risk.
The Environmental Protection Agency (EPA) brought forward a 46-count indictment in May of 1986, alleging numerous violations stemming from operations at Derecktor, Inc.’s shipyard in Middletown, Rhode Island. Investigators discovered that Polychlorinated Biphenyls (PCBs), highly toxic industrial compounds, were leaking from transformers used at the shipyard and had been illegally buried on a farm in Portsmouth owned by the East Post Road Corporation, controlled by Robert Derecktor. This clandestine disposal method bypassed all established protocols for handling and containing hazardous waste.
The charges extended beyond PCB contamination. Derecktor, Inc. was accused of illegally discharging pollutants from its drydock into waterways without the required permits, a direct violation of the Clean Water Act. Furthermore, the company faced allegations of failing to report releases of both PCBs and asbestos, flouting requirements under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as Superfund. The indictment also detailed violations of the Clean Air Act’s National Emission Standards for Hazardous Air Pollutants (NESHAPS) related to asbestos removal practices.
Robert Derecktor himself was personally implicated in the scheme, facing charges related to the PCB violations, the illegal transportation of hazardous materials under the Hazardous Materials Transportation Act (HMTA), and conspiracy to commit the aforementioned offenses. The EPA’s investigation demonstrated a clear connection between Derecktor’s leadership and the systematic disregard for environmental safeguards. The scale of the violations suggests a deliberate effort to cut corners and avoid the costs associated with responsible waste management.
Penalties & Resolution
By December 1986, the case reached a resolution with Derecktor, Inc. pleading guilty to 24 counts of violating the Clean Water Act, one count of violating the Clean Air Act, and one count of violating CERCLA. The company was sentenced to a hefty $600,000 fine, with $200,000 suspended pending restitution to the Hazardous Waste Emergency Response Fund. Robert Derecktor also pleaded guilty to three counts of violating the Toxic Substances Control Act (TSCA) and received a $75,000 fine, along with a 60-month probationary period for an additional TSCA violation. East Post Road Corporation was also found guilty of two counts of PCB violations and one count of failure to report a hazardous substance release.
Key Facts
- Defendant: Robert E. Derecktor, Derecktor, Inc., and East Post Road Corporation
- Location: Middletown and Portsmouth, Rhode Island
- Year: 1987
- Laws Violated: Toxic Substances Control Act (TSCA) – 15 U.S.C. 2614(1)(c), 2615(b); Clean Water Act – 33 U.S.C. 1311(a), 1319(c)(1); CERCLA – 42 U.S.C. 9603(b); Clean Air Act – 42 U.S.C. 7412(c)(1)(B, 7412(e)(5), 7413(c)(1)(C); RCRA – 42 U.S.C. 6928(d)(2); HMTA – 49 U.S.C. 1809(b); Conspiracy – 18 U.S.C. 371
- Penalties: Derecktor, Inc. – $600,000 fine (with $200,000 suspended); Robert Derecktor – $75,000 fine and 60 months probation
- Crime: Illegal disposal of PCBs, unauthorized pollutant discharge, failure to report hazardous substance releases, and asbestos handling violations.
This case serves as a stark reminder of the environmental consequences of prioritizing profit over compliance and the importance of robust enforcement of environmental regulations.
Source: EPA ECHO Enforcement Case Database
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