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TOP CORPORATE OFFICIALS CHARGED IN $1 MILLION RECYCLING SHAM The Justice Department today announces federal criminal charges against two New Hampshire corporate officials for allegedly participating in a $1 million fraud conspiracy which falsely claimed to recycle oil contaminated soil into asphalt. The indictment filed in U.S. District Court in Concord, N.H., alleges that officials with the New Hampshire-based Beede Waste Oil Corp. and Cash Energy, Inc., failed to recycle most of 28,000 tons of contaminated soil transported to the now defunct Beede facility in Plaistow, New Hampshire, adjacent to Haverhill, Massachusetts. Mark O. Henry, a director and treasurer of Beede Waste Oil and the owner of Cash Energy, Inc., and Robert D. Laflamme, the manager of both companies, were charged with 17 counts of mail fraud, wire fraud and conspiracy for the recycling scam and violations of environmental law. Each could receive up to 5 years in prison and fines of up to $4,250,000. The indictment charges Henry and LaFlamme with devising a scheme to defraud approximately 75 companies and individuals who were trying to comply with environmental rules by hiring Beede Waste Oil to transport and recycle their contaminated soil. The indictment alleges that Henry and LaFlamme knew that the material would not be recycled and that Beede's Plaistow facility could not accept any more contaminated soil, having exceeded a 3,000 ton permit limit for soil storage imposed by the State of New Hampshire. Among those defrauded were the Commonwealth of Massachusetts, Mobil Oil, Portsmouth Naval Shipyard, and the Shawmut Bank. In furtherance of the scheme, the defendants produced false recycling certificates claiming the waste had been or would be recycled, according to the indictment. Allegedly, some of the approximately 28,000 tons of petroleum contaminated soil that Henry and LaFlamme transported to Beede also contained the pollutants cadmium or lead. Beede Waste Oil received $1 million as a result of Henry's and LaFlamme's activities, according to the indictment. The type of waste involved frequently originates from the cleanup of underground storage tanks and oil spills. Assistant Attorney General Schiffer said: "Sham recycling will be vigorously prosecuted because it violates the law and undermines the efforts of those who are trying to comply with the law and cleanup the environment." Paul M. Gagnon, U.S. Attorney for New Hampshire, said: "This case makes perfectly clear that environmental crimes are serious crimes and will be prosecuted fully." Ms. Schiffer and Mr. Gagnon commended the EPA Criminal

Investigation Division for investigating the case and the New Hampshire Department of Environmental Services for contributing to the investigation. The indictment represents charges brought by a federal grand jury; it is not itself evidence. As in all criminal cases, the Government has the burden of proving charges at trial beyond a reasonable doubt. ### 95-116