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For Release: (Washington, D.C. -- July 13, 2005

 

 

Enforcement Wrap-up

 

Contact: Stacie Keller, 202-564-4355 / keller.stacie@epa.gov

 

Two Virginia Companies and Two Individuals Plead Guilty in False

Certificate Case

 

In a case brought before the U.S. District Court for the Eastern

District of Virginia in Norfolk, Va., during the week of June 30, ACS

Environmental, Inc., of Norfolk, Va.; Air Power Enterprises, Inc., of

Portsmouth, Va.; each pleaded guilty to conspiracy to make false

statements and to submitting false statements to the Small Business

Administration (SBA). In addition, James Schaubach, president of ACS

and vice-president of Air Power; and Nicanor Lotuaco, president of Air

Power, each pleaded guilty to making false statements to the SBA. The

defendants purchased false asbestos and lead abatement training

certificates for employees of ACS and Air Power from F&M Environmental

Technologies, Inc. F&M was convicted of selling false certificates in

2001. The certificates, which claimed employees had training they did

not have, were used to obtain federal program minority set-aside

contracts. From 1999-2004, Air Power received $37 million worth of

these contracts for abatement activities and sub-contracted the work to

ACS. Workers who perform asbestos and lead abatement activities without

proper training are at serious risk of significant health consequences,

including lung cancer and neurological disorders. The case was

investigated by the Washington, D.C., Area Office of EPA's Criminal

Investigation Division, the Defense Criminal Investigative Services, the

FBI, the SBA's Office of Inspector General, the NASA Office of Inspector

General, the Army Criminal Investigations Division, the Defense Contract

Audit Office, and the Virginia Department of Professional and

Occupational Regulation. It is being prosecuted by the Environmental

Crimes Section of the U.S. Department of Justice and the U.S. attorney's

office in the Eastern District of Virginia.

 

 

 

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