Sun Hee Park, Asbestos Abatement Fraud, New York 2012

Albany, NY – Sun Hee Park, operator of Charlie Brown Services, was sentenced in April 2012 following a federal investigation into widespread, illegal asbestos abatement practices and fraudulent activity targeting New York State’s workers’ compensation system. Park exploited undocumented Korean workers, subjecting them to dangerous conditions while simultaneously defrauding the state and evading tax obligations.

According to court documents, Charlie Brown Services routinely contracted for asbestos abatement projects throughout upstate New York without the necessary licenses or adherence to safety regulations. The company specifically targeted projects where cost-cutting measures were prioritized, allowing Park to undercut legitimate contractors by utilizing a workforce comprised of undocumented Korean laborers. These workers were not provided with proper safety equipment, training, or documentation, leaving them vulnerable to the severe health risks associated with asbestos exposure.

The Environmental Protection Agency (EPA) played a crucial role in uncovering the scheme, working in conjunction with the Department of Labor and the Internal Revenue Service – Criminal Investigation Division. Investigators discovered that Park knowingly endangered workers and the public by failing to follow established asbestos abatement protocols. Asbestos, a known carcinogen, requires specialized handling and disposal procedures to prevent its fibers from becoming airborne and causing debilitating and often fatal diseases like mesothelioma and lung cancer.

Beyond the blatant disregard for worker safety and environmental regulations, Park was also found to have systematically defrauded the New York State Workers Compensation Insurance Board. The fraud involved misrepresenting employee information and failing to report accurate payroll data, resulting in significantly reduced insurance premiums. This allowed Charlie Brown Services to operate at an unfair advantage over legitimate businesses that complied with state regulations.

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Legal Ramifications

Park was initially charged on November 29, 2009, with one count of mail fraud, a violation of 18 U.S.C. § 1341, and one count of aiding another in the preparation and presentation of a false and fraudulent personal income tax return, in violation of 26 U.S.C. § 7606(2). After pleading guilty on April 27, 2012, Park received a 14-month prison sentence, followed by a 5-year probationary period. Furthermore, the court ordered Park to pay a staggering $1,651,356 in restitution to the New York State Insurance Fund to cover the losses incurred through the fraudulent scheme.

Key Facts

Defendant: Sun Hee Park
Company: Charlie Brown Services
Crime: Illegal asbestos abatement and workers’ compensation fraud
Location: Upstate New York
Year: 2012
Statutes Violated: 18 U.S.C. § 1341 (Mail Fraud), 26 U.S.C. § 7606(2) (False Tax Return)
Penalties: 14 months incarceration, 60 months probation, $1,651,356 restitution
Victims: Undocumented Korean workers and the New York State Insurance Fund

This case serves as a stark reminder of the dangers posed by unscrupulous contractors who prioritize profit over safety and legal compliance. Authorities continue to urge the public to report any suspected violations of environmental regulations or workers’ compensation laws.

Source: EPA ECHO Enforcement Case Database

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