Rosemount, MN – Spectro Alloys Corporation, a Minnesota-based secondary aluminum processing facility, has been sentenced following a guilty plea to federal charges of making false statements to environmental regulators. The company admitted to deliberately concealing excessive emissions of hazardous air pollutants, specifically dioxins and furans, from the Environmental Protection Agency (EPA) and the Minnesota Pollution Control Agency (MPCA).
According to court documents, Spectro knowingly submitted falsified compliance reports in May 2007, falsely claiming adherence to Clean Air Act emission limits. Further, the company failed to disclose the elevated dioxin/furan levels in a response letter to the EPA following a violation notice in March of the same year. These actions represent a deliberate attempt to evade environmental regulations and potentially endanger public health.
The EPA’s Criminal Investigation Division initiated the probe, uncovering evidence that Spectro’s internal testing revealed the emissions breaches. Instead of reporting these findings, the company actively concealed them from authorities, violating Title 18 U.S. Criminal Code, specifically 18 U.S.C. 1001(a)(1), which prohibits knowingly making false statements to the federal government.
Penalties and Remediation
On June 7, 2012, U.S. District Court Judge John R. Tunheim sentenced Spectro Alloys to a two-year probationary period and a $500,000 criminal fine. Beyond the financial penalty, the company is mandated to overhaul its reporting procedures, ensuring complete and accurate disclosure of all emissions testing results – even those not legally required. A full-time environmental health and safety manager must be retained, and all testing results must be reported to both the MPCA and EPA.
This criminal case is coupled with a parallel civil settlement, still awaiting final court approval. Under the terms of the civil agreement, Spectro will pay an additional $600,000 in civil penalties and invest in upgraded pollution control equipment. The civil suit also addresses alleged violations of the Resource Conservation and Recovery Act, related to improper hazardous waste management.
“In order to safeguard public health, it is absolutely essential that government officials assure compliance with environmental regulations through accurate testing, measurement, and honest reporting,” stated Randall Ashe, Special Agent-in-Charge of the EPA’s criminal enforcement program. “Violators who submit false information undermine our efforts to protect the public and the environment.”
Key Facts
- Defendant: Spectro Alloys Corporation
- Location: Rosemount, Minnesota
- Crime: Making False Statements (18 U.S.C. 1001(a)(1))
- Pollutant: Dioxins and Furans
- Penalties: $500,000 criminal fine, 2 years probation, enhanced reporting requirements, full-time environmental manager. $600,000 civil penalty and pollution control upgrades also required.
- Agencies Involved: EPA, Minnesota Pollution Control Agency, U.S. Attorney’s Office (District of Minnesota)
Assistant U.S. Attorney David M. Genrich and EPA Regional Criminal Enforcement Counsel James J. Cha prosecuted the criminal case. The civil case was handled by Assistant U.S. Attorney Friedrich A.P. Siekert and trial attorney Nigel Cooney of the Department of Justice’s Environment and Natural Resources Division. This case underscores the EPA’s commitment to pursuing criminal enforcement against companies that prioritize profit over environmental compliance and public safety.
Source: EPA ECHO Enforcement Case Database
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