Samar Chatterjee, Fraud, IL 1989

Chicago, IL – Environmental consultant Samar Chatterjee was sentenced to 48 months in prison in February 1989 after pleading guilty to federal fraud charges related to falsified data submitted to the Environmental Protection Agency (EPA) and the Metropolitan Sanitary District of Greater Chicago. The case, originating with an arrest in August 1987, exposed a scheme to defraud the government out of over $200,000 in grant funding earmarked for critical sewer infrastructure assessments.

Chatterjee, contracted to perform inspections and data collection related to sanitary sewer connections, flow gauging, and manhole surveys, allegedly fabricated reports and submitted them as legitimate findings. These falsified reports were directly tied to EPA Step 1 grant funds, intended to support improvements to the region’s wastewater management systems. The indictment detailed 32 counts, initially alleging a conspiracy to violate the Clean Water Act, alongside numerous counts of submitting false documents and engaging in mail fraud.

Authorities moved swiftly to apprehend Chatterjee on August 31, 1987, preventing him from leaving the country. He was immediately incarcerated, facing a hefty $1.4 million cash bond – with no option for a 10% alternative – signaling the seriousness with which federal investigators viewed the alleged offenses. The indictment accused Chatterjee of not only submitting false data but also conspiring with others to carry out the fraudulent scheme.

While initially facing a broad range of charges, Chatterjee ultimately pled guilty to three counts of mail fraud (18 U.S.C. 1341) in October 1987. This plea significantly narrowed the scope of the legal battle but did not lessen the gravity of the crimes. Mail fraud, in this context, involved using the U.S. Postal Service to facilitate the fraudulent scheme by submitting false invoices and reports related to the grant funds.

The sentencing, handed down in February 1989, included a 48-month period of incarceration followed by a 60-month probationary period. However, the court didn’t stop at imprisonment. Chatterjee was also ordered to pay $220,000 in restitution, split evenly between the EPA ($110,000) and the South Stickney Sanitation District ($110,000). This restitution aimed to recover the funds fraudulently obtained through the manipulated grant process. The charges also included a violation of 18 U.S.C. 371 (Conspiracy to commit offense or defraud United States) and 18 U.S.C. 1001 (False statements in any matter within the jurisdiction of any department or agency of the United States).

Key Facts

Defendant: Samar Chatterjee
Location: Illinois
Year of Offense: 1987-1989
Charges: Mail Fraud (18 U.S.C. 1341), Conspiracy (18 U.S.C. 371), False Statements (18 U.S.C. 1001)
Fraud Amount: Over $200,000 in EPA grant funds
Sentence: 48 months incarceration, 60 months probation, $220,000 restitution
Victims: U.S. Environmental Protection Agency, South Stickney Sanitation District

The case serves as a stark reminder of the potential for fraud within government-funded environmental projects and underscores the EPA’s commitment to pursuing criminal enforcement actions against those who seek to profit from deception and endanger public resources. The South Stickney Sanitation District continues to serve the Chicago metropolitan area, and the incident remains a cautionary tale regarding oversight and accountability in public works contracting.

Source: EPA ECHO Enforcement Case Database

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