DOJ Indicts Tennessee Demolition Firms for Clean Air Act Violations

The U.S. Department of Justice has announced that two demolition and salvage companies and their owners and supervisors have been indicted by a federal grand jury in Chattanooga, Tenn.

The indictment describes a year-long scheme in which the former Standard Coosa Thatcher plant in Chattanooga, Tenn., was illegally demolished while containing large amounts of asbestos. The indictment alleges that any asbestos that was removed from the plant prior to demolition was removed illegally and scattered in open debris piles. The indictment also alleges the owners and supervisors falsified documents to cover up the activities.

The 11-count indictment charges the defendants with conspiracy to defraud the United States and to violate the Clean Air Act. The two companies and three individuals are also charged with violating the Clean Air Act's "work-practice standards" intended to prevent releases of asbestos, making false statements to special agents of the U.S. Environmental Protection Agency, and obstructing justice.

The companies and individuals who have been indicted are:

Watkins Street Project LLC, Chattanooga, Tenn., a land-holding and salvage company; Mathis Construction Inc., Chattanooga, Tenn., a demolition company; Donald Fillers, an owner of Watkins Street Project LLC; James Mathis, an owner of Mathis Construction Inc.; and David Wood, a supervisor for Watkins Street Project LLC.

The conspiracy and substantive Clean Air Act, and false statements counts of the indictment each carry a maximum possible term of five years in prison and a fine of $250,000, twice the gross gain or twice the gross loss to a victim. The obstruction of justice count of the indictment carries a maximum possible term of 20 years in prison and similar fines.

This case is being investigated by special agents of the EPA and investigators with Chattanooga-Hamilton County Air Pollution Control Bureau.