Michigan Water Environment Association Environmental Lab Fraud

Transcription

1 Michigan Water Environment Association Environmental Lab Fraud HOW TO STAY OUT OF JAIL

2 Det. Daniel Kennedy Michigan Department of Natural Resources Law Enforcement Division Environmental Investigations Section 525 W. Allegan Street, Lansing, Michigan

3 3 Types of Environmental Labs Labs owned / operated by regulated business or entity Third-party contract laboratories -Small Independents -Larger Independents -Corporations Government laboratories -Municipal / state

4 Role in the Regulatory Scheme Environmental laboratories are used by industry, businesses, and governmental entities to analyze samples of media (soil, water, air) and manufactured substances to: -Determine chemical composition and /or properties -Assess whether such chemicals pose human health risks -Determine whether such media are contaminated and in need of treatment -Quantify levels of pollutants within such media for the purposes of regulatory compliance

5 Role in the Regulatory Scheme (cont d) Regulated industries / government operated plants are issued permits by state or federal regulatory agencies containing effluent, discharge or emissions limitations as well as sampling and testing requirements. Non-regulated industries, businesses, government facilities submit samples for testing to determine if they must apply for a permit or otherwise fall under regulatory authority.

6 Results Your Supposed To Count On Sample is collected (regulated entity, client or third party) Date, time and location of sample is recorded Sample is given a unique identifier (to prevent mix up) Sample is properly transported to the lab Sample is preserved and protected from alteration Sample is tested using scientifically valid / accepted methods A laboratory report is generated that documents test results Testing process / result undergoes a QA / QC review

7 The Test Method Specific established test methods are used to determine the amount or character of the constituent or property required to be monitored. Testing method must meet certain scientific and/or regulatory requirements. The required testing method often will be prescribed in applicable regulations. If numerical value is sought, instrument calibration is part of the method to establish accuracy of the device.

8 Scientific Integrity Labs are to report data that accurately characterizes or quantifies the species or properties of the sample. Accurate test results based upon generally accepted scientific principles / methods. Quality assurance and quality control procedures in place to verify proper tests were performed and results are consistent with those tests.

9 State Accreditation Most states have a certification program for labs that tests for safe drinking water. Several states have established a certification program for labs operating within the state that test wastewater, water quality, hazardous waste, air pollutants, or other environmental samples.

10 National Accreditation National Environmental Lab Accreditation Conference (NELAC) Voluntary association of state and federal agencies Purpose is to establish and promote performance standards for the operation of environmental labs

11 What is Lab Fraud? Any false material statement, representation or certification involving the generation or reporting of laboratory data and includes knowing alteration or omission of any material element

12 Methods Employed Procedural fraud Intentional short cuts or deviations from Standard Operating Procedures Sample prep, QA Spiking Measurement Fraud Altering or forging direct physical measurements Improper manual integrations, false visual observation

13 Indicators of Possible Lab Fraud Physical appearance (disorganized / disheveled) Inadequate testing machine(s) / equipment No (or inadequate) written lab procedures No (or inadequate) QA / QC program / protocol No (or insufficient) sampling protocol Unqualified lab technicians Reports not generated or provided to client Lab completes form report that client is required to submit to state Selective reporting Poor recordkeeping

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15 Potential Consequences of Lab Fraud Contaminated drinking water Contaminated surface water Contaminated ground water Unhealthy air quality Contaminated soil Improper disposal of hazardous waste Underreporting of data about hazardous waste sites that lead to human exposure

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17 Exposure to asbestos fibers in the air resulting from demolition / renovation Inaccurate data to policy makers Permits for new sources of pollution could be justified because of false data Data reported higher than actual may prohibit a new permitted pollution source

18 How is Lab Fraud Reported? Laboratory Employees (whistleblowers) Regulated Entity (permit holders) Data reviewers and users (government agencies) Lab certification program auditors State / Federal environmental agency field inspectors Ex-spouse or girlfriend/boyfriend (We get the information quick because they will be back in love tomorrow)

19 Why is Lab Fraud Committed? Economic benefit Time Constraints vs. Low risk of detection Overly burdensome contract requirements Unqualified personnel Inadequate technology State regulations

20 Low Risk of Detection States have either no certification program or one that is limited in scope, with few enforcement mechanisms or resources. Regulatory focus is on the regulated (i.e., permitted) facility Legal requirements to sample, test, and keep records is on permittee Lack of jurisdiction to perform routine administrative inspections of independent laboratories Permittee s certification of environmental reports is either not required or enforced by regulatory agency State regulatory agencies allow lab to submit required reports for permittee

21 So How Do You Stay Out Of Jail?

22 1. Do you have integrity? 2. Do you send in reports that look like this?

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24 Did you notice every entry, every day was the same except the initials? The pen used was the same. The sample fridge, drying oven muffle furnace, BOD incubator, BACTI incubator, and autoclave all contained the same numbers for a month.

25 What is Wrong Here?

26 White out and EZcorrect tape was a hot commodity for this lab prior to sending them in to Water Resources Division. Same as in the chart in the next slide. But fraud does not have to be so flagrant to be caught.

27 WHAT IS WRONG WITH THIS PICTURE?

28 Additional Ways Billing for services not completed Copying previous years test results because of instrument failure, forgetfulness, laziness, and lack of time. Missed hold times

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30 Examples of Lab Fraud Prosecutions Let s Hope It s Not You 1. A month ago, a former chemist at a now-shuttered state drug lab in Boston was indicted on 27 counts of obstructing justice, tampering with evidence, perjury and other charges in connection with her handling of some of the tens of thousands of drug cases she worked on during her nine years there. 2. After the closure a lab in New York, the Governor ordered the state s inspector general to investigate. Her findings, detailed in a 166-page report, cited a litany of failures she described as profound, including weak leadership, a dysfunctional quality management system, inconsistently trained and qualified analysts, and outdated and inconsistent testing procedures.

31 Federal Case U.S. Tennie VS Tennie-White December 2017 US v. Tennie-White Southern District Tennessee U.S. v. Tennie White--Background Tennie-White was the sole proprietor of Mississippi Environmental Analytical Laboratories (MEAL), Inc., established in Jackson in 1995 Business was to test environmental samples submitted by paying clients

32 White also started Troubleshooters, Inc., an environmental consulting business, with Robert Wilson in To start her lab business, White applied for and received a loan for $165,000 that was funded by the State. She also received a private loan for an additional $124,000.

33 Robert Wilson was hired as Environmental Manager of an auto parts manufacturer located in Water Valley, MS. Wilson hired Tennie-White to analyze manufacturer s industrial waste water samples per its indirect discharge (pre-treatment) permit issued by Mississippi Department of Environment Quality. The manufacturer collected waste water samples monthly and sent them to the contracted lab for analysis. Prior lab service provider created report of sample test results and sent them back to client manufacturer to help complete DMR s submitted to MDEQ. Tennie-White, however, prepared the Discharge Monitoring Reports (DMRs) to be signed by manufacture's environmental manager and submitted to MDEQ.

34 During interviews with EPA-CID, Tennie-White claimed she sent client s waste water samples to 3rd party lab --but she couldn t remember the name. Tennie-White blamed former business partner Robert Wilson for creating the fictitious lab report 6 months later, after further investigation, she later recanted Search of hard drive Tennie-White used for both businesses revealed that she created the fictitious document by electronically cutting and pasting from an authentic report from another lab (CAS). SHE LIED!!!!

35 Tennie-White was found guilty by jury of 2 counts of making false statements (for the DMRs and lab report) and 1 count of obstructing proceedings (lying to CID agent) At the sentencing hearing, Gov t introduced evidence of additional uncharged false statements and fraud) Tennie-White received 40 months prison

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37 It is up to you whether you want to do the right thing each and every time Yes, state regulations and EPA protocol can be bothersome. BUT they are in place for a reason It is for the safety and welfare of yourself, the citizens in your communities and the State of Michigan

38 Questions?

39 THANK YOU.