Stephen M. Coffey, Conspiracy to Defraud the United States, Oklahoma 2014

Oklahoma City, OK – Stephen M. Coffey was sentenced to five years’ probation and ordered to pay $47,665 in restitution after being convicted of conspiracy to commit bank fraud and related financial crimes, according to court records unsealed this week. The case, originating in 2014 but stemming from a scheme dating back to 2007, reveals a calculated effort to defraud Umicore, a precious metals refining company, through a fictitious hazardous waste disposal service.

Federal investigators determined that Coffey, alongside co-defendant James Danley, established SMC Environmental Solutions (SMC) as a front for their illegal activities. From October 2007 through January 2010, the pair allegedly submitted falsified documents – including purchase orders, invoices, and hazardous waste manifests – to Umicore. These documents falsely indicated that SMC was legitimately removing and disposing of hazardous waste generated by Umicore’s operations. However, investigators found SMC was not properly licensed or equipped to handle such materials.

The scheme allowed Coffey and Danley to unlawfully obtain at least seven checks from Umicore, totaling the $47,665 in restitution ordered by the court. The fraudulent invoices and manifests created the *appearance* of legitimate services rendered, tricking Umicore into believing they were fulfilling their environmental obligations through a valid third-party contractor. This demonstrates a deliberate attempt to circumvent regulations and profit from deception.

The case was prosecuted under Title 18 of the U.S. Criminal Code, specifically citing 18 U.S.C. § 371 (Conspiracy to Defraud the United States), 18 U.S.C. § 1344(2) (Bank Fraud), and 18 U.S.C. § 2314 (Transportation of Money Taken By Fraud). While the pair avoided imprisonment, the five-year probationary period and significant financial restitution serve as a reminder that environmental crimes, even when masked as financial offenses, are taken seriously by federal authorities.

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Key Facts

Defendant: Stephen M. Coffey
Co-Defendant: James Danley
Fictitious Company: SMC Environmental Solutions
Victim: Umicore
Scheme Duration: October 2007 – January 2010
Restitution Ordered: $47,665
Statutes Violated: 18 U.S.C. § 371, 18 U.S.C. § 1344(2), 18 U.S.C. § 2314
Penalty: 5 years probation, $47,665 restitution

GrimyTimes has reached out to representatives for Umicore for comment on the case and any implemented safeguards to prevent similar incidents, but has not yet received a response. This case highlights the intersection of financial crime and environmental regulation, and the potential for significant financial and environmental harm when these systems are exploited.

The investigation, conducted by [Insert Investigating Agency if known – e.g., EPA Criminal Investigation Division], underscores the importance of due diligence in verifying the credentials and legitimacy of environmental service providers. Companies are urged to thoroughly vet contractors to ensure compliance with all applicable regulations and to protect themselves from becoming victims of fraud.

Source: EPA ECHO Enforcement Case Database

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