Sioux Falls, SD – Sun-Wise Systems, doing business as Dakota Plating, and four individuals faced federal charges in 1998 following a multi-year investigation into illegal industrial wastewater discharges. The company and its personnel were accused of knowingly circumventing environmental regulations and then actively concealing their actions from both city and federal authorities.
According to court documents, Dakota Plating illegally discharged industrial wastewater into the Sioux Falls municipal wastewater treatment system between 1992 and 1995. This unpermitted discharge contained pollutants exceeding acceptable limits, potentially overburdening the city’s treatment facilities and posing a risk to the environment. The scheme went undetected for several years, until an investigation was launched revealing a pattern of deliberate deception.
The initial charges, filed in March 1997 against the company and employee Pap, centered on violations of the Clean Water Act (CWA) – specifically 33 U.S.C. 1319(c)(1)(A) for negligent violations and 33 U.S.C. 1342(b)(8) for operating without a required permit. Further charges were leveled against McCrea in July 1997, alleging conspiracy (18 U.S.C. 371) in addition to the CWA violations. Sferrazza and Schwaller were charged in January 1998 with similar CWA offenses.
However, the case did not proceed to trial. In late January 1998, all defendants entered guilty pleas. Sun-Wise Systems admitted to conspiracy (18 U.S.C. 371) and making false statements (18 U.S.C. 1001), alongside the CWA violations. The individual defendants each pled guilty to violations of the Clean Water Act. This sudden change of plea suggests a likely agreement with federal prosecutors, potentially minimizing the severity of the penalties.
Sentencing and Penalties
On April 6, 1998, sentencing was handed down. Schwaller received 12 months of probation, 80 hours of community service, and a $300 fine. Sferrazza faced the same probationary period and community service, but was also ordered to pay $250 in restitution and a $250 fine. McCrea received a seven-month prison sentence, followed by 12 months of probation and a $300 fine. Pap received a slightly harsher sentence of eight months incarceration, 12 months probation, and a $3,000 fine. The corporate entity, Sun-Wise Systems, was ordered to pay $15,000 in restitution and contribute $7,500 to a community project as a fine.
Key Facts
- Defendant: Sun-Wise Systems d/b/a Dakota Plating and four individuals
- Location: Sioux Falls, South Dakota
- Years of Illegal Activity: 1992-1995
- Statutes Violated: 33 U.S.C. 1342(b)(8), 18 U.S.C. 1001, 18 U.S.C. 371, 33 U.S.C. 1319(c)(1)(A)
- Penalties: Ranging from probation and fines to eight months imprisonment and substantial financial restitution/fines for the company.
- Nature of Crime: Illegal discharge of industrial wastewater and subsequent cover-up of the violations.
This case underscores the importance of environmental compliance and the consequences of deliberately misleading regulatory agencies. While the penalties levied may seem relatively modest by today’s standards, the case served as a warning to other industrial facilities about the potential for criminal prosecution for environmental offenses.
Source: EPA ECHO Enforcement Case Database
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