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RACKETEERING CHARGES BROUGHT IN MICHIGAN ENVIRONMENTAL CASE
Release Date: 08/03/2000
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FOR RELEASE: THURSDAY, AUGUST 3, 2000
RACKETEERING CHARGES BROUGHT IN MICHIGAN ENVIRONMENTAL CASE
Six defendants: Hi-Po Inc., a former Ypsilanti, Mich., environmental consulting and cleanup firm; Aaron Smith of Northville, Mich., former president and owner of Hi-Po; Stephen Carbeck of Ann Arbor, Mich., former Operations Manager of Hi-Po; Leonard Leniczek of Mayville, Mich., a former Chrysler employee; Lyman Aris of Milan, Mich., a University of Michigan employee; and Donald Schroat of Commerce Township, Mich., a former City of Riverview employee, were charged with various federal crimes on July 27, in U.S. District Court in Detroit, Mich. The indictment alleges that from June 1996 to October 1998, Smith and Carbeck violated the Racketeer Influenced and Corrupt Organization Act (RICO) by operating Hi-Po as an organized crime enterprise and that they engaged in a pattern of polluting soils and waters so that Hi-Po would be hired to clean up the contamination. In addition, the indictment charges that Smith and Carbeck overstated the amount of contamination that was present, charged customers for services that were not performed and equipment that was not used, and bribed employees of customer organizations so that they would assist in obtaining contracts and/or submitting false invoices. Smith, Carbeck, and Hi-Po are charged with conspiracy to violate the Clean Water Act, violating the Clean Water Act and mail fraud. Smith was also charged with money laundering and another count of the indictment seeks forfeiture of illegal profits from Smith. Leniczek was charged with bribery and conspiring with Smith. Aris and Schroat were charged with bribery. The case was investigated by EPA’s Criminal Investigation Division and the FBI with the assistance of the University of Michigan’s Department of Public Safety. It is being prosecuted by the U.S. Attorney’s Office in Detroit.
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