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EXECUTIVES AND GASOLINE BLENDING COMPANY PLEAD GUILTY
Release Date: 10/19/2001
Contact Information:
FOR RELEASE: FRIDAY, OCT. 19, 2001
EXECUTIVES AND GASOLINE BLENDING COMPANY PLEAD GUILTY
Luke C. Hester 202-564-7818 / [email protected]
Blending, Marketing and Service, Inc., (BMS) of Houston, Tex.; Waldo Schroeder, also of Houston, President of BMS; and Mark Schroeder of The Woodlands, Tex., BMS Operations Manager; all pleaded guilty on Oct.12 to falsifying test results on reformulated gasoline (RFG). The defendants were involved with Caleb Brett, a New Jersey testing laboratory, in a scheme to change data on tests of reformulated gasoline samples. The data changes falsely made it appear as if the gasoline met EPA standards for cleaner burning fuel. Approximately 200-300 million gallons of the substandard gasoline were distributed in New York, New Jersey and Connecticut. Cleaner burning RFG is required by EPA in some states to reduce air pollutants that can cause a variety of respiratory diseases. When sentenced, Waldo and Mark Schroeder each face a maximum of up to five years in prison and/or a $250,000 fine. BMS faces fines up to $500,000 and/or up to five years probation. The case was investigated by EPA’s Criminal Investigation Division and the U.S. Postal Inspection Service with the assistance of EPA’s National Enforcement Investigations Center. It is being prosecuted by the Environmental Crimes Section of the U.S. Department of Justice and the U.S. Attorney’s Office in Newark, N.J.
R-207 ###
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