Omaha, NE – Thomas Walz was sentenced to three years of probation and a $5,000 federal fine after pleading guilty to a charge of fraud and false statements related to concealing lead-based paint hazards in an Omaha apartment building. The case, prosecuted by the Environmental Protection Agency (EPA) and detailed in court records, highlights the serious consequences of failing to disclose known environmental dangers to potential buyers and tenants.
The investigation began following an inspection by the Douglas County Health Department in 2003 of an apartment building owned by Walz. Inspectors discovered significant lead-based paint hazards – peeling and chipping paint – throughout the property, which was constructed prior to 1978, the year lead-based paint was banned for residential use. Walz was reportedly present during the inspection and was directly informed of the hazards and his responsibility to remediate them. Despite this notification, and subsequent follow-up calls reiterating the need for repairs, Walz allegedly took no action.
In 2004, Walz sold the apartment building. Crucially, during the sale, he signed a Lead Warning Statement Addendum to the Uniform Purchase Agreement. In this legally binding document, Walz *certified* that he had no knowledge of lead-based paint or lead-based paint hazards on the property, and that he possessed no reports or records pertaining to such hazards. This certification proved to be demonstrably false, as the prior health department inspection report clearly documented the existing dangers.
The EPA’s Criminal Investigation Division uncovered evidence suggesting Walz intentionally misrepresented the condition of the property to facilitate the sale and avoid the costs associated with lead abatement. The presence of lead hazards is particularly concerning due to the severe health risks, especially for young children. At least one child residing in the building subsequently tested positive for an elevated blood lead level (EBL), indicating exposure to the dangerous substance.
Legal Ramifications
Walz was indicted on June 21, 2006, on one count of fraud and false statements, a violation of Title 18 U.S. Code, Section 1018, which criminalizes knowingly making false statements in official documents. He pleaded guilty on March 5, 2007. On May 30, 2007, he received a sentence of 36 months probation, a $25 special assessment fee, and a $5,000 federal fine. While not a lengthy prison sentence, the case serves as a warning that concealing known environmental hazards can result in federal criminal charges.
Key Facts
- Defendant: Thomas Walz
- Location: Omaha, Nebraska
- Year of Offense: 2004 (disclosure during sale)
- Statutes Violated: 18 U.S.C. 1018 (Fraud and False Statements) and the Toxic Substances Control Act (related to lead disclosure requirements)
- Evidence: Health department inspection report contradicting Walz’s statements
- Victim(s): Potential buyers and tenants of the apartment building, specifically a child who tested positive for elevated blood lead levels.
- Penalty: 36 months probation, $25 special assessment, $5,000 fine
This case underscores the importance of full disclosure regarding lead-based paint hazards, particularly in older housing stock. The EPA continues to aggressively pursue enforcement actions against individuals and entities who knowingly endanger public health by concealing environmental risks.
Source: EPA ECHO Enforcement Case Database
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