United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

BUSINESSMAN FACES UP TO 25 YEARS IN FEDERAL PRISON
FOLLOWING CONVICTION IN ASBESTOS DISPOSAL CASE

In a case arising from allegations of wrongful handling of asbestos-containing floor tile, a federal jury in Dallas has convicted Dallas-area resident Melvin Eugene Riecke II on all four counts of a superseding indictment charging him with Clean Air Act violations, false statements and mail fraud, announced United States Attorney Richard B. Roper. Riecke is the General Manager of National Converting and Fulfillment Company, based in Ellis County, Texas, and which used to have a facility at 5000 Riser Street/2401 Vinson Street in Dallas where it recycled roofing shingles. The conviction, handed down by the jury late yesterday, followed a four-day trial in federal court in Dallas before United States Chief District Judge A. Joe Fish.

Specifically, the jury convicted Riecke on two counts of failing to comply with federal work practice standards regulating demolition a building containing asbestos and disposing of the resulting waste, one count of false statements to the Texas Department of Health, Toxic Waste Control Division, and one count of mail fraud. Riecke, age 53, of Palmer, Texas, faces a maximum statutory sentence of 25 years imprisonment and a $1.25 million fine. He is scheduled to be sentenced by Judge Fish on November 21, 2006.

U.S. Attorney Roper said, “Protecting our quality of life in North Texas is very important to our residents. Those who cause damage to our environment and put residents at risk, will be aggressively prosecuted by this office.”

"Knowingly violating the laws governing asbestos removal is irresponsible and inexcusable," EPA Regional Administrator Richard E. Greene said. "Other businesses conducting asbestos removal should rest assured that EPA and other regulatory agencies will continue to aggressively pursue those that knowingly risk public health for the sake of profit."

The case stems from an investigation in 2002 by the City of Dallas into illegal dumping. Dallas Code Inspectors discovered a three and one-half acre tract in an industrial area of West Dallas where illegal waste had been dumped. Further investigation revealed that the waste included hazardous asbestos-containing floor tiles and floor tile mastic that had been removed from an old Payless Cashways lumber and hardware store building that had been located on Beltline Road in Addison, Texas.

Evidence presented at trial showed that Riecke contracted with the building’s owner, Beltway Commercial Real Estate, to demolish the structure, which a pre-demolition survey showed contained the asbestos. The contract required that he fully comply with all regulations regarding asbestos removal. However, from November 6 through December 10, 2001, Riecke and his crew removed the floor tile from the site without making any effort to comply with federal work practice standards for handling asbestos that had been established under the Clean Air Act.

The government presented evidence at trial that when asbestos containing material was stripped and removed from the site, Riecke failed to comply with these standards, including the requirement that he have on site at least one employee who was trained in the proper removal of asbestos. Riecke also failed to prevent the discharge of visible emissions into the outside air during the stripping, collection, processing, packaging and transporting of the asbestos; failed to deposit all the asbestos as soon as practical at a proper waste disposal site; and failed to properly mark vehicles used to transport the asbestos-containing waste.

The government also presented evidence that Riecke intentionally made numerous false statements on an asbestos demolition/renovation Notification Form he sent via Federal Express to the Texas Department of Health, Asbestos Notification Section, Toxic Substances Control Division. The form is required by state and federal law to be filed before beginning any demolition activity on a public building containing more than a minimal amount of asbestos.

United States Attorney Roper praised the investigative efforts of the U.S. EPA Criminal Investigation Division, Texas Parks and Wildlife, and Texas Commission on Environmental Quality, all part of the Texas Environmental Crimes Task Force. Assistance was also provided by the City of Dallas Marshal’s Office. The case was prosecuted by Assistant United States Attorney Phillip C. Umphres and by Special Assistant United States Attorney Cheryl Seager of the EPA.

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