Men charged with violating Racketeering Act in environmental cleanups

You don't have to be Tony Soprano or Michael Corleone to be charged with violating the Racketeer Influenced and Corrupt Organization Act (RICO).

Federal prosecutors claim that the former president and operations manager of an environmental cleanup company polluted soil and water, conspired with others, and offered bribes so that their company could be hired to clean up the contamination. In all, six defendants have been charged with various federal crimes in U.S. District Court in Detroit, MI.

The charges stem from the business practices at a company called Hi-Po, a former Ypsilanti, MI environmental consulting and cleanup firm. The indictment alleges that from June 1996 to October 1998, Aaron Smith of Northville, MI, former president and owner of Hi-Po, and Stephen Carbeck of Ann Arbor, MI, former operations manager of Hi-Po, violated RICO by operating Hi-Po as an organized crime enterprise. The government charges that the company engaged in a pattern of polluting soils and waters so that Hi-Po would be hired to clean up the contamination.

In addition, the indictment charges that Smith and Carbeck overstated the amount of contamination that was present, charged customers for services that were not performed and equipment that was not used, and bribed employees of customer organizations so that they would assist in obtaining contracts and/or submitting false invoices.

Smith, Carbeck, and Hi-Po are charged with conspiracy to violate the Clean Water Act, violating the Clean Water Act and mail fraud. Smith was also charged with money laundering and another count of the indictment seeks forfeiture of illegal profits from Smith. Leonard Leniczek of Mayville, MI, a former Chrysler employee, was charged with bribery and conspiring with Smith. Lyman Aris of Milan, MI, a University of Michigan employee, and Donald Schroat of Commerce Township, MI, a former City of Riverview employee, were charged with bribery.

The Environmental Protection Agency's Criminal Investigation Division and the FBI investigated the case with the assistance of the University of Michigan's Department of Public Safety. The U.S. Attorney's Office in Detroit is prosecuting the case.

By Sandy Smith
Managing Editor, SafetyOnline.com