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Private Labs Fake Environmental Tests

LARRY MARGASAK / AP 22jan03

WASHINGTON Private laboratories are increasingly being caught falsifying test results for water supplies, petroleum products, underground tanks, and soil, hampering the government's ability to ensure Americans are protected by environmental laws, investigators say.

The fraud has caused millions of people to fill their cars with substandard gasoline that may have violated clean air standards, or to drink water not properly tested for safety, the officials said.

In addition, officials making decisions at hazardous waste cleanup sites have relied on companies that fraudulently tested air, water and soil samples.

"In recent years, what has come to our attention is that outside [non-government] labs are oftentimes in bed with the people who hired them, and conspired to commit environmental crime," said David Uhlmann, chief of the Justice Department's environmental crimes section.

The EPA's watchdog against fraud, Inspector General Nikki Tinsley, has called the rise of lab fraud a disturbing trend.

"If it was my drinking water I'd consider it very serious," she said, declining to identify locations affected by the ongoing investigation.

Private laboratories test products that are regulated by anti-pollution laws, and the results allow companies to certify that they're meeting the requirements of environmental protection laws.

In one instance three years ago, investigators discovered fraudulent test results by contract employees at the Environmental Protection Agency's lab in Chicago. The head of the laboratory was transferred and the contractor, Lockheed Martin, was suspended from performing tests.

The Justice Department and Environmental Protection Agency have prosecuted dozens of employees and laboratories the past several years for fraudulent testing. Uhlmann, the Justice Department official, said the prosecutions have grown but statistics are not kept on lab fraud cases.

The growing number of cases stretch from New England, where a chemist for municipal water made up test results, to Texas, where the government recently prosecuted the largest tester of underground fuel tanks.

Officials said they aren't certain whether an increasing number of labs are falsifying tests, or whether more are simply being caught through more aggressive investigations and whistle-blowers.

Tinsley said there were numerous reasons for lab misconduct: poor training, ineffective ethics programs, shrinking markets, and efforts to cut costs.

In some cases, the labs duped the companies that submitted samples for testing. In other instances, the companies were part of a conspiracy with the labs, officials said.

Sometimes the fraud included "driveway tests," so-named because employees generate them on a computer in their own driveways, without ever visiting the facilities.

Whatever the case, lab fraud hampers an environmental protection system that frequently relies on voluntary compliance by companies backed by test results, officials said.

"If we can't rely upon science with supporting lab results, then we don't know what's out there for the public to eat or drink or use," said J.P. Suarez, the EPA's assistant administrator for enforcement and compliance assurance.

"When people may not be getting harmed, they may be getting ripped off, using products that are not what they're paying for. And companies are paying for services they're not getting," he said.

Among the recent examples:

Intertek Testing Services, of Richardson, Texas, was fined $9 million for falsifying results at its former laboratory in the Dallas suburb. The tests of air, soil, pesticides, nerve gas agents and other hazards were used to make decisions for severely polluted areas called "Superfund" sites, at Department of Defense facilities and other hazardous waste locations. Terian Koester, owner of Quality Water Analysis Laboratories in Pittsburg, Kan., was sentenced to 18 months in prison for violating the Clean Water Act and mail fraud. He was accused of fraudulent analysis of waste water, drinking water and hazardous waste.

William McCarthy, a senior chemist for the Lawrence, Mass., drinking water filtration plant, pleaded guilty to violating the Safe Drinking Water Act. During the 1990s McCarthy, who supervised quality testing, admitted he fabricated drinking water quality results. The Lawrence filtration plant draws water from the Merrimack River and distributes it to more than 60,000 residents.

Caleb Brett U.S.A. Inc., of Houston, was sentenced to pay a $1 million fine and three years probation for misleading investigators about a scheme to falsify analyses on reformulated gasoline, a blended fuel that significantly reduces pollution in populated areas. The fraud resulted in distribution of 200 million to 300 million gallons of substandard gasoline in New York, New Jersey and Connecticut.

Tanknology-NDE International, of Austin, Texas, was ordered to pay $2.29 million in a criminal fine and restitution for false underground storage tank testing services. The nation's largest underground storage tank testing company admitted the fraud at postal facilities, military bases and a NASA facility, among other sites. The tests were supposed to detect leakage of petroleum products.

Former environmental contractor James Edward Adams of Inman, S.C., was sentenced to 27 months in prison. His company, which provided testing services for underground storage tanks, directed employees to provide false test reports to owners and operators of petroleum tank facilities in South Carolina, North Carolina, Florida, Georgia, Virginia and Tennessee, prosecutors said.

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