W. R. Grace & Company, False Statements, MA 1988

Boston, MA – Packaging giant W.R. Grace & Co. was slapped with a maximum fine after admitting to deliberately misleading the Environmental Protection Agency (EPA) regarding hazardous waste practices at its Woburn, Massachusetts plant. The case, stemming from a federal grand jury indictment in 1987, highlights a pattern of corporate deception surrounding groundwater contamination that plagued the town for years.

The investigation began as the EPA sought to pinpoint the source of pollutants impacting two closed municipal drinking wells in Woburn. Region I officials issued a Request for Information under the Resource Conservation and Recovery Act (RCRA), specifically Section 3007, aiming to gather data on chemical usage and waste disposal at local industrial facilities. W.R. Grace, a multinational corporation headquartered in New York, responded with a letter that federal prosecutors later determined contained significant and intentional falsehoods.

According to the indictment, W.R. Grace falsely reported the amounts of trichloroethylene and acetone used at its Cryovac Division plant. More damningly, the company actively concealed the fact that waste solvents – including trichloroethylene, toluene, acetone, and 1,1,1-trichloroethane – had been routinely dumped on the ground behind the facility. This practice, if accurate, suggested a blatant disregard for environmental regulations and a potential link to the groundwater contamination.

The case quickly escalated to a federal level, with a grand jury returning a two-count indictment on January 28, 1987, alleging violations of Title 18 U.S. Criminal Code, specifically 18 U.S.C. 1001 – making false statements to a federal agency. Prosecutors argued that the false information obstructed the EPA’s investigation into the Woburn water crisis, potentially endangering public health.

After over a year of legal proceedings, W.R. Grace & Co. ultimately pled guilty to one count of making false statements on May 31, 1988. The company accepted the maximum statutory fine of $10,000 for the offense. While seemingly a small penalty for a multi-national corporation, the guilty plea served as a public admission of wrongdoing and underscored the EPA’s commitment to prosecuting environmental crimes.

The Woburn case remains a notorious example of the challenges faced by investigators attempting to hold corporations accountable for environmental damage. Though the $10,000 fine was levied, the long-term health consequences and legal battles surrounding the contaminated water supply continued for years after, casting a shadow over the town and raising questions about the adequacy of environmental enforcement.

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Key Facts

Defendant: W. R. Grace & Company
Crime: Making False Statements to a Federal Agency
State: Massachusetts
Year: 1988
Statute Violated: 18 U.S.C. 1001 (Title 18 U.S. Criminal Code)
Penalty: $10,000 fine (maximum statutory)
Details: The company falsified reports regarding chemical usage and concealed illegal dumping of waste solvents at its Woburn plant.
The case stemmed from an EPA investigation into groundwater contamination near closed drinking wells.

Source: EPA ECHO Enforcement Case Database

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