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Jail Term and Fines for Defrauding Government, Falsely Certifying Asbestos Workers

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At a glance:

The executives of two Virginia companies have been given jail time and heavy fines after pleading guilty to charges of conspiracy to defraud several government agencies.
 
The companies contract for asbestos and lead abatement and hazardous waste operations.
 
They falsely certified their workers as having the appropriate credentials for this type of work, thus defrauding the agencies that commissioned them for projects, and endangering their staff and the general public.
 
They also falsely claimed that one of the companies was minority-owned in order to benefit from government initiatives.

Virginia Executive & Companies Receive Large Jail Term and ...

PressZoom (press release) - 4/2/2006 9:09 AM

James Schaubach, president of ACS and vice president of Air Power, was sentenced to 21 months in prison, to be followed by 3 years of supervised release, and fined $1.5 million. Both Air Power and ACS were sentenced to 5 years probation and Air Power was also fined $500,000. Nicanor Lotuaco, president of Air Power, was sentenced on Jan. 26, 2006 to five months in jail, followed by five months home detention and three years supervised release, and fined $1 million.
 
“By falsely certifying that workers had the appropriate credentials to work on asbestos and lead abatement projects, the defendants endangered the health and safety of their employees and the public,” said Sue Ellen Wooldridge, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s sentence sends a strong message that the Department will aggressively prosecute companies that intentionally and persistently violate our environmental laws and workp
 
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