A Taiwanese electronics manufacturing firm was slapped Friday with the largest criminal environmental fine in Utah history.
Compeq International, which makes printed circuit boards in a Salt Lake International Center plant, was fined a total of $1.35 million for discharging excessive levels of copper into the municipal wastewater treatment system.The fine was part of a plea agreement between Compeq and federal prosecutors that was accepted by U.S. District Senior Judge Bruce S. Jenkins during a sentencing hearing in Salt Lake City.
Compeq was charged on June 4 with three counts of violating the Clean Water Act by diluting the wastewater discharges from its facility at 620 N. John Glenn Road during 1994 and 1995 to mask excessive levels of corrosive pollutants.
According to the government's plea memorandum, Compeq's wastewater treatment system failed to keep pace with dramatic production growth during the early 1990s. Instead of improving the system, the company effectively forced low-level employees to deal with its shortcomings as best they could.
Assistant U.S. Attorney Richard W. Lambert said their methods included using garden hoses to dilute treated process wastewater; bypassing the treatment system entirely by discharging corrosive copper solution directly into the city sewer; tampering with sampling devices; and falsifying daily logs to suggest compliance.
Employees involved in the company's wastewater operations told investigators that they had repeatedly called the problems to the attention of Compeq management but that their complaints went unanswered.
In a statement released following the sentencing Friday afternoon, Compeq expressed regret for the violations and said steps have been taken to ensure there is no recurrence.
A company spokesman said Compeq has spent $1.8 million to upgrade its wastewater treatment system. Also, he noted that the negotiated plea includes a contribution of $350,000 to the Utah Hazardous Substance Mitigation Fund, Salt Lake City Water Treatment and the Western States Project, which is a 13-state consortium involved in criminal and civil enforcement of environmental law.
At a press conference following the sentencing, Lambert said the criminal penalties levied against Compeq should send a message to corporate polluters that environmental law violations will not be tolerated in Utah.
"As this case demonstrates, it's always wiser to spend the money necessary to obey the law in the first place," Lambert said.
Government trial attorney H. Claire Whitney said the $1 million fine plus $350,000 in contributions imposed on Compeq ranks among the top five or six criminal environmental penalties in the nation for similar violations. In Utah, it topped the previous record fine of $750,000 plus $250,000 in contributions imposed on Syro, Inc.
Syro, an Ohio company that operates a steel products manufacturing facility in Centerville, was assessed the $1 million penalty in July after pleading guilty to Clean Water Act violations.
Lambert attributed the increasing success in environmental law prosecutions to a cooperative effort between the U.S. Attorney's Office, Utah attorney general and the federal Environmental Protection Agency. In the Compeq case, the three agencies launched a joint investigation after employees blew the whistle, he said.
"Fortunately for those concerned about the environment, when companies violate the law, there are usually employees who are conscientious enough to alert authorities," Lambert said.
After the Compeq whistleblowers complained, investigators covertly collected 12 samples of wastewater discharges that revealed copper concentrations 1,000 percent above allowable levels. Employees told the investigators the company was violating its wastewater permit almost on a daily basis.
The polluted wastewater may have ended up in a canal that passes through wetlands and ultimately into the Great Salt Lake. However, Assistant Attorney General Richard K. Rathbun said such corrosive pollutants can also damage municipal wastewater treatment facilities.
In addition to prosecuting the company, the government also brought charges against two employees who had supervisory responsibility over the wastewater operations. One of those workers was sentenced to probation and fined $2,500. The other is expected to enter a plea in the case soon.
Lambert cited an old environmental axiom: "Dilution is not the solution to pollution."