Business Crimes Hotline

According to the criminal information and plea agreements, Triple H generates acidic wastewater (low pH) as part of its business. By law, Triple H was not allowed to discharge wastewater with a pH lower than 5.0 into the city sewer. Nevertheless, Harris admitted that he negligently operated Triple H such that its employees knowingly discharged acidic wastewater on more than one occasion. In addition, Triple H admitted that it knowingly failed to manually sample and record pH readings when the automatic meters were inoperative.

Pursuant to the plea agreements, the parties agreed that Triple H should pay a $750,000 fine and be placed on 3 years' probation, Harris should pay a $50,000 fine and be placed on 3 years' probation, and both Triple H and Harris should pay $11,480 in restitution to the City of Riverside. The parties also agreed that Triple H and. Harris should take certain remedial measures to prevent the discharge of acidic wastewater. The plea agreements, however, provide that the government and each of the defendants have a right to back out of the plea agreements if the district court wants to impose sentences different than those recommended in the plea agreements.

FLORIDA

Former Kmart Employee Indicted for Mail and Securities Fraud

A former Kmart employee, Eduardo A. Portero, was indicted with four counts of securities fraud and four counts of mail fraud in connection with a $145 million stock swindle. The indictment alleges that Portero used a series of aliases in an attempt to obtain unauthorized transfers of approximately $145 million in Kmart Holding Corporation (KHC) stock. Using his aliases, Portero allegedly sent forged, unauthorized Kmart corporation resolutions and stock transfer forms requesting the transfer of KHC stock from KHC to the aliases. Portero received the stock and opened online brokerage accounts using his aliases. Portero then deposited the stock certificates and promptly requested wire transfers of the proceeds from the sale of the stock.

If convicted, Portero faces a maximum statutory term of imprisonment of 25 years on each securities fraud count, and 20 years on each mail fraud count. Portero also faces maximum statutory fines of up to $250,000 on each count.

Florida Company Pleads Guilty to Caviar Smuggling

Optimus, Inc., a Miami-based gourmet company doing business as Marky's Caviar and the International Food Emporium, pled guilty to federal wildlife and smuggling charges relating to its purchase of sturgeon caviar. Sturgeon is a protected species. A major threat to the survival of sturgeon is the black market trade in caviar because the fish are killed in the process of obtaining the roe that is salted to make caviar.

In pleading guilty, Optimus admitted to knowingly purchasing caviar with false wildlife invoices. Optimus directed its suppliers to provide invoices stating that the caviar had been lawfully imported into the United States, even though there were indications to the contrary. The invoices also concealed the quantity and price per kilo Optimus paid for the caviar. Optimus also admitted to knowingly purchasing caviar from two smuggling rings. For these purchases, Optimus wired money to various foreign banks in exchange for caviar that was delivered to the company's headquarters. Finally, Optimus admitted to failing to exercise due care in purchasing caviar from two other smuggling rings. For these purchases, Optimus purchased caviar without ever receiving documents showing that the caviar had been lawfully imported.

Pursuant to the plea agreement, Optimus will pay a $1 million fine, be subject to 5 years' probation, and develop a stringent wildlife compliance plan.

CALIFORNIA

Riverside Business and Its VP Plead Guilty to Violations of the Federal Clean Water Act

A food and beverage processor located in Riverside, CA, Triple H Food Processors, Inc., and its VP, Richard Joseph Harris, pled guilty to unlawfully discharging acidic wastewater into the City of Riverside sewer system in violation of the federal Clean Water Act. The sewers eventually discharge into the Pacific Ocean through the Santa Ana River.

According to the criminal information and plea agreements, Triple H generates acidic wastewater (low pH) as part of its business. By law, Triple H was not allowed to discharge wastewater with a pH lower than 5.0 into the city sewer. Nevertheless, Harris admitted that he negligently operated Triple H such that its employees knowingly discharged acidic wastewater on more than one occasion. In addition, Triple H admitted that it knowingly failed to manually sample and record pH readings when the automatic meters were inoperative.

Pursuant to the plea agreements, the parties agreed that Triple H should pay a $750,000 fine and be placed on 3 years' probation, Harris should pay a $50,000 fine and be placed on 3 years' probation, and both Triple H and Harris should pay $11,480 in restitution to the City of Riverside. The parties also agreed that Triple H and. Harris should take certain remedial measures to prevent the discharge of acidic wastewater. The plea agreements, however, provide that the government and each of the defendants have a right to back out of the plea agreements if the district court wants to impose sentences different than those recommended in the plea agreements.

FLORIDA

Former Kmart Employee Indicted for Mail and Securities Fraud

A former Kmart employee, Eduardo A. Portero, was indicted with four counts of securities fraud and four counts of mail fraud in connection with a $145 million stock swindle. The indictment alleges that Portero used a series of aliases in an attempt to obtain unauthorized transfers of approximately $145 million in Kmart Holding Corporation (KHC) stock. Using his aliases, Portero allegedly sent forged, unauthorized Kmart corporation resolutions and stock transfer forms requesting the transfer of KHC stock from KHC to the aliases. Portero received the stock and opened online brokerage accounts using his aliases. Portero then deposited the stock certificates and promptly requested wire transfers of the proceeds from the sale of the stock.

If convicted, Portero faces a maximum statutory term of imprisonment of 25 years on each securities fraud count, and 20 years on each mail fraud count. Portero also faces maximum statutory fines of up to $250,000 on each count.

Florida Company Pleads Guilty to Caviar Smuggling

Optimus, Inc., a Miami-based gourmet company doing business as Marky's Caviar and the International Food Emporium, pled guilty to federal wildlife and smuggling charges relating to its purchase of sturgeon caviar. Sturgeon is a protected species. A major threat to the survival of sturgeon is the black market trade in caviar because the fish are killed in the process of obtaining the roe that is salted to make caviar.

In pleading guilty, Optimus admitted to knowingly purchasing caviar with false wildlife invoices. Optimus directed its suppliers to provide invoices stating that the caviar had been lawfully imported into the United States, even though there were indications to the contrary. The invoices also concealed the quantity and price per kilo Optimus paid for the caviar. Optimus also admitted to knowingly purchasing caviar from two smuggling rings. For these purchases, Optimus wired money to various foreign banks in exchange for caviar that was delivered to the company's headquarters. Finally, Optimus admitted to failing to exercise due care in purchasing caviar from two other smuggling rings. For these purchases, Optimus purchased caviar without ever receiving documents showing that the caviar had been lawfully imported.

Pursuant to the plea agreement, Optimus will pay a $1 million fine, be subject to 5 years' probation, and develop a stringent wildlife compliance plan.