Royal Oak Township Supervisor William Morgan was sentenced to three years in federal prison earlier this month, concluding a case that exposed a scheme to defraud the U.S. Department of Housing and Urban Development (HUD) and to skirt environmental regulations during a demolition project. The case, investigated by a multi-agency task force including the FBI, HUD’s Office of Inspector General, and the EPA’s Criminal Investigation Division, revealed a deliberate attempt to prioritize personal gain over public safety and responsible governance.
The investigation began in 2011, focusing on asbestos abatement work connected to the Berkshire Development, a contract to demolish three buildings owned by Royal Oak Township. Evidence revealed that Morgan, along with asbestos abatement subcontractor Terrance Parker, owner of PBM Services, attempted to solicit a $50,000 bribe from the owner of Berkshire in exchange for approving a change order for the asbestos abatement work. The funds for the demolition project originated from the American Reinvestment and Recovery Act of 2009, earmarked for the revitalization of blighted areas.
However, the scheme didn’t stop at bribery. Morgan and Parker allegedly conspired to submit falsified reports regarding the asbestos abatement, intending to fraudulently claim approximately $170,000 in federal funds. Asbestos, a known carcinogen with no safe exposure level, requires strict adherence to Clean Air Act regulations during removal to protect public health. The falsified reports were intended to bypass these crucial safety protocols. Randall Ashe, Special Agent in Charge of the EPA’s Criminal Investigation Division, emphasized the gravity of the situation, stating the focus of awarding abatement contracts should be on competency, safety, and cost-effectiveness.
The case unfolded with a series of guilty pleas. Terrance Parker admitted to conspiracy in January 2012 and was sentenced to 21 months in prison followed by two years of probation. Another individual, Covington, also pled guilty to conspiracy to make false claims to HUD. Brown also pled guilty to conspiracy. Ultimately, Morgan pled guilty in March 2012 to one count of conspiracy and one count of bribery. At sentencing on August 2, 2012, Morgan received 36 months of incarceration and a 24-month probationary period. Covington and Brown both received probationary sentences, with Covington also forfeiting his asbestos inspector certification.
U.S. Attorney Barbara L. McQuade underscored the severity of the offenses, noting that the conduct “breached the public trust” and “risked public health.” The FBI’s Special Agent in Charge, Andrew Arena, added that the guilty plea should serve as a “strong reminder…that corruption will never go unpunished.” The case highlights the ongoing efforts of federal agencies to combat public corruption and ensure compliance with environmental regulations, particularly in projects funded by taxpayer dollars.
Key Facts
- Defendant: William Frank (Willie) Morgan
- Location: Royal Oak Township, Michigan
- Year: 2012
- Charges: Conspiracy (18 U.S.C. 371) and Bribery (18 U.S.C. 666), Clean Air Act violations (42 U.S.C. 7413(c)(2)(A))
- Statutes Violated: Title 18 U.S. Criminal Code, Clean Air Act (42 U.S.C. 7413(c)(4))
- Penalties: Conspiracy carries a maximum sentence of 5 years imprisonment and a $250,000 fine. Bribery also carries a maximum sentence of 5 years imprisonment and a $250,000 fine.
- Sentencing: Morgan received 36 months incarceration and 24 months probation. Parker received 21 months incarceration and 24 months probation.
The investigation serves as a stark warning to public officials and contractors alike: prioritizing personal profit over public safety and ethical conduct will result in serious legal consequences. The EPA continues to prioritize the enforcement of environmental laws, especially regarding hazardous materials like asbestos, to protect communities from harm.
Source: EPA ECHO Enforcement Case Database
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