U.S. Department of Transportation
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, September 30, 1999
Contact: Jeff Nelligan
Fined $3.3 Million in Fraud Against U.S. Navy
The U.S. Department of
Transportation Office of Inspector General today
that two Maryland trash-hauling firms were fined a total of $3.3
-- a $1.3 million criminal penalty and a $2 million civil fine --
their guilty pleas in June to an array of illegal activities
false billing to the U.S. Navy of approximately $800,000.
A.W. Stevens and Sons
Waste Disposal Systems, Inc., and St. Mary's
Systems, Inc., were handed the fines Friday, Sept. 24 in U.S.
Court in Greenbelt, Md. Further, Michael W. Stevens of
vice-president of the two firms, was ordered to serve five
in jail and five months of home monitoring and pay a $30,000 fine.
defendants sentenced in the case under the Maryland
law must pay $20,000 fines to both St. Mary's County and
George's County in Maryland in connection with the case. They are
W. Stevens, Susan Goolsby Stevens and Patrick T. Stevens.
An investigation led by
the Navy's Criminal Investigative Service and the
George's County Department of Public Health revealed that the two
illegally trucked garbage collected from the Navy's Patuxent River
Station, Indian Head Naval Ordnance Station and the U.S. Naval
in Annapolis to Virginia. The cost to the firms of final dumping
Virginia was lower than it would have been in Maryland. However, the
companies billed the Navy as if the Maryland rates were being
pocketing the difference.
The disposal companies
also operated unlicensed transfer stations for the
of garbage from vehicle to vehicle, creating a public nuisance and
tributary of Henson's Creek in Maryland.
The firms pleaded guilty
to federal charges including conspiracy, making
claims, making false statements and violation of the Clean Water
A guilty plea also was entered to a charge of falsifying a statement
to the U.S.
Department of Transportation's Office of Motor Carrier and
Safety regarding the hours the companies' drivers spent behind the
Assisting in the probe
were the DOT Office of Inspector General, the U.S.
Protection Agency, and the Federal Bureau of Investigation.
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