DOW JONES NEWSWIRES
A former executive at a Canadian company that treats and
disposes of contaminated soils became the latest to plead guilty to
participating in a conspiracy to pay kickbacks and commit fraud at
a New Jersey Superfund site.
Robert P. Griffiths pleaded guilty to three counts, including
one for being part of a conspiracy to defraud the Environmental
Protection Agency by inflating the prices he charged to a prime
contractor of the EPA and providing kickbacks to employees of that
prime contractor.
Another former official at Bennett Environmental Inc. (BEV.T)
and the company itself pleaded guilty last year to participating in
the same conspiracy, which revolved around the cleanup of the
Creosote Superfund toxic waste site in Manville, N.J.
According to a press release Monday announcing Griffiths' guilty
plea, Griffiths and his co-conspirators inflated the bid prices to
cover approximately $1.3 million in kickbacks and money Bennett
kept for itself. All told, the federal government contends the
co-conspirators were able to allocate at least $43 million in
fraudulently awarded subcontracts to BEI for the removal, treatment
and disposal of contaminated soil.
Griffiths also pleaded guilty to conspiracy to commit
international money laundering, the purpose of which was for
Griffiths to profit personally from the fraud and kickback scheme.
From approximately February 2003 through approximately September
2004, Griffiths and a co-conspirator received more than $1 million
in kickbacks through his shell company. Lastly, Griffiths pleased
guilty to obstructing an official proceeding before the Securities
and Exchange Commission.
He faces a total of 45 years in jail and $1.5 million in
fines.
To date, seven individuals and three companies have pleaded
guilty in this investigation.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com