U.S. V. Allied Envtl. Services, Inc.

Underground Storage Tank. Courtesy of EPA.

Allied Environmental Services, Inc. (Allied), an environmental consulting firm, was involved in the removal of underground storage tanks and associated petroleum-impacted wastewater from military facilities in Kansas and Missouri.  The wastewater was contaminated with various refined petroleum products, such as diesel fuel and kerosene.   Oklahoma trucker Mac DeWayne Overholt was hired by Allied to transport the wastewater to several illegal disposal sites including, ultimately, Class II injection wells in Oklahoma, an abandoned tank farm, and a stream leading to Keystone Lake.  When Allied company president Koteswara Attaluri and Overholt learned in mid-1995 that they were being investigated by law enforcement officials, they increased their efforts to conceal the scheme, including creating fictitious shipping documents.
    
After a 5 week trial, Attaluri Overholt and Allied were convicted of conspiracy to violate the Safe Drinking Water Act and the Resource Conservation and Recovery Act (RCRA), mail fraud, and wire fraud.   In addition, Overholt was convicted of two CWA counts, one RCRA count, and two false statement counts.    Attaluri was sentenced to serve 55 months imprisonment and to pay $1.27 million in restitution for the cost of cleanup.  Allied was sentenced to five years probation. All three defendants were also ordered to pay $1.27 million in restitution for clean up costs. Overholt was sentenced to serve 87 months imprisonment. The 10th circuit reversed the convictions for mail fraud but affirmed the sentences in October 2002.

 

 

In the News

 

October 20, 1999
Allied Environmental convicted of conspiracy to dump wastewater, Allied's president and a trucking company officer also convicted in the scheme
A federal jury today convicted Allied Environmental Services, Inc. and its president with conspiracy to dump more than 300,000 gallons of wastewater contaminated with petroleum into underground wells - an activity that can pollute drinking water. The jury in Tulsa, Okla., also convicted the owner of Overholt Trucking, which transported the wastewater to Oklahoma.

 

Updated June 9, 2015

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