FOR IMMEDIATE RELEASE THURSDAY, MAY 7, 1998

ENR

PENNSYLVANIA COMPANY MAJORITY OWNER AND MANAGERS

INDICTED IN WASTE DUMPING CONSPIRACY

WASHINGTON, D.C. -- A federal grand jury in Philadelphia today charged Multi-Flow Dispensers L.P., and its majority owner, general manager and warehouse manager with conspiring to dump manufacturing wastes into sewer systems in New Jersey and Philadelphia from 1990 to 1994, the Justice Department announced. The indictment, filed today in U.S. District Court in Philadelphia, charges Multi-Flow majority owner Bernard A. Gottlieb, general manager Nicholas Scairato, and warehouse manager David Haigh, with criminal violations of the Clean Water Act for their alleged roles in the waste dumping conspiracy. Multi-Flow makes highly concentrated drink mix syrups, based in Huntingdon Valley, Pennsylvania. "These allegations of deliberate dumping are serious offenses that will be prosecuted," said Lois Schiffer, Assistant Attorney General in charge of the Environment and Natural Resources Division. "The alleged violations would not have been discovered and prosecuted but for outstanding efforts of the Philadelphia Water Department, FBI and EPA Criminal Investigation Division in Philadelphia." According to the indictment, Multi-Flow began illegally trucking its waste in 55 gallon drums from its manufacturing plan in Huntingdon Valley, to its former headquarters in Carteret, New Jersey, where it was dumped into a drainage pit located inside the company's building. Multi-Flow also leased a building at an industrial park outside of Philadelphia, and dump waste there from September 1992 to September 1994. Multi-Flow's lease at the Frankford Arsenal Business Center called for drains and a 20' x 20' drainage area to be installed in its building and connected to the existing sewer system. Although the indictment alleges that Multi-Flow and its managers intended to dump the waste into Philadelphia's Southwest Water Pollution Control Plant, the drains were actually connected to a storm sewer that flowed directly to the Frankford Inlet, a tributary of the Delaware River. According to the indictment, Multi-Flow and the managers charged in the illegal scheme, did not notify the sewer authorities in New Jersey or Philadelphia and did not have a permit. In addition, the indictment alleges that Multi-Flow and its managers circumvented a monitoring and sampling device in the sewer system by dumping at the company's Huntingdon Valley facility only after lifting a manhole and checking in the sewer downstream from the plant to see if the monitoring device was present. The monitor had been ordered as a result of a 1987 Compliance Agreement with a local sewer authority. Employees were provided with rain coats and directed to dump the pollutants in Multi-Flow's parking lot during rains storms, where the waste flowed to a nearby tributary of the Pennypack River, a tributary

of the Delaware River. The indictment alleges that the defendants conspired to knowingly violate the prohibition on dumping trucked waste at an unpermitted sewer disposal site, and with dumping acidic waste with a pH value of less than 5.0 into the sewer system. The investigation of Multi-Flow and the defendants was conducted by the Federal Bureau of Investigations and the Environmental Protection Agency Criminal Investigative Division. The prosecution is being handled by the Justice Department's Environmental Crimes Section. The investigation is continuing. An indictment represents charges brought by a federal grand jury and is not itself evidence. The government has the burden of proving the charges at trial beyond a reasonable doubt. ###

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