From: Nigel.Allen@bbs.oit.unc.edu (Nigel Allen)
Subject: Pesticide Testing: Texas Lab, President, Employees Indicted on Felony Counts
Organization: NDA
Date: Thu, 1 Oct 1992 10:07:32 GMT

Here is a press release from the U.S. Justice Department.
 Texas Lab, President, Employees Indicted on Felony Counts in
Connection With Pesticide Testing
 To: National Desk, Environment Writer
 Contact: U.S. Department of Justice, 202-514-2007

   AUSTIN, Texas, Sept. 29  -- The United States Attorney 
for the Western District of Texas, Ronald F. Ederer, the
Department of Justice, and the Environmental Protection Agency (EPA)
announced today that Craven Laboratories Inc., its president and
three employees were indicted last Tuesday by a federal grand jury in
Austin, Texas, on 20 felony counts including conspiracy to commit
mail fraud, to make false statements, and to obstruct EPA proceedings
in connection with pesticide residue tests.
   The indictment, unsealed today, specifically charged Craven
Laboratories Inc. and its president, Don Allen Craven, both of
Austin, Texas, with one felony count of conspiracy, nine felony
counts of mail fraud, nine felony counts of making false statements
and concealment of material facts and one felony count of obstruction
of EPA proceedings.
   The indictment also charged the head of the Quality Assurance Unit
of Craven Laboratories Inc., Edward Stanley Peterson, of Austin,
Texas, with one felony count of conspiracy, eight felony counts of
mail fraud, nine felony counts of making false statements and
concealment of material facts, and one felony count of obstruction
of EPA proceedings.  Laboratory technicians Dale Lynn Harris and
Donald Wade Hamerly, both of Austin, Texas, were each charged with
one felony count of conspiracy, one felony count of mail fraud, one
felony count of making false statements and concealment of material
facts, and one felony count of obstruction of EPA proceedings.
   Craven Laboratories Inc. contracted with pesticide manufacturers
to conduct pesticide residue tests.  Information about these tests
was then submitted to EPA by the manufacturers to enable EPA to set
tolerances for pesticides and to register pesticides pursuant to the
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) and the
Federal Food, Drug, and Cosmetic Act (FFDCA).
   Under FIFRA, it is unlawful for anyone to falsify information
about pesticide residue tests submitted to EPA.  The indictment in
this case alleges the defendants concealed and falsified material
information about the calibrations, quality controls and methods used
in tests they performed, supervised and reviewed.  As a result of
this concealment and falsification, the indictment alleges pesticide
manufacturers were defrauded of money paid for the pesticide residue
tests and false information was submitted to EPA for use in setting
tolerances and registering pesticides.
   Acting Assistant Attorney General for the department's Environment
and Natural Resources Division, Vicki A. O'Meara, said, "This is a
case of national import.  Scientific laboratories working in the
environmental field must strictly comply with all federal laws
ad regulations."
   Ederer said that several former employees of Craven Laboratories
Inc. have agreed to plead guilty to various crimes and to cooperate
fully in the investigation and prosecution of those indicted
today.  According to Ederer:
   -- Mark Kevin Gibson of Cedar Park, Texas, has agreed to plead
guilty to one felony count of making false statements and one count
of misprision of a felony.
   -- Melvin Tan of Austin, Texas, has agreed to plead guilty to one
felony count of making false statements and two misdemeanor
violations of FIFRA.
   -- Barry Kenneth Voigt and Mark Burke Haymes, both of Austin,
Texas, have each agreed to plead guilty to one felony count of making
false statements.
   -- Mark Randall Fish of Springhill, La.; Timothy Mark Kram of
Austin, Texas; Edward Lombard Gorham of Houston; Gerald Mikolaichik
of Austin, Texas; Patrick Conner Bizzell of Brenham, Texas; Terry
Lynn Newsom of Austin, Texas, and Thomas Everett Bird of San Marcos,
Texas, have all agreed to plead guilty to misdemeanor violations of
FIFRA.
   Ederer added, "This prosecution represents the continuing
commitment of the Western District of Texas to identify and prosecute
those individuals who would take actions which might harm public
health and safety for financial gain."  He also noted that, in this
case, "the EPA, major pesticide manufacturers, and the public were
victims of the fraud involving the integrity of significant
laboratory tests.  This cannot be tolerated."
   Linda J. Fisher, EPA's assistant administrator of Prevention,
Pesticides and Toxic Substances, said, "After learning about the
allegations against Craven Labs, EPA immediately took steps to ensure
that there was no threat posed to public health.  By looking at
supplementary data, we believe that the public health has not been
endangered and that these pesticides can remain in use.  However,
this does not negate the seriousness of the allegations.  Any attempt
to tamper with, or otherwise falsify, data submitted to this agency
undermines the credibility of the pesticide regulatory program and
will not be tolerated."
   Herbert H. Tate Jr., EPA's assistant administrator for
enforcement, said, "This case demonstrates that we will root out and
vigorously prosecute any individual or organization whose misconduct
could possibly threaten the integrity of EPA's data base.  In the
years ahead, there will be no higher priority than targeting our
enforcement efforts to ensure the quality of the data that EPA
receives."
   The maximum penalty for each felony count of conspiracy, mail
fraud, making false statements and obstruction is a term of
imprisonment of five years and a fine of not more than the greater of
$250,000 ($500,000 for Craven Laboratories Inc.) or twice the gross
gain or loss; a misprision of a felony count may result in a maximum
term of imprisonment of three years and a fine of $250,000; a FIFRA
misdemeanor count may result in a maximum term of imprisonment of 30
days and a fine of $5,000.  Each count also may result in the
imposition of a special assessment, pursuant to a 18 U.S.C. 3013,
and a term of supervised release.
   The investigation leading to the indictment was a cooperative
effort by the department's Environmental Crimes Section, the U.S.
Attorney's office, and the EPA's Criminal Investigation Division and
Office of Prevention, Pesticides and Toxic Substances.  Ederer
praised the efforts of the EPA's Criminal Investigation Division,
citing the lengthy and thorough investigation which led to this
indictment.
   Ederer noted that the indictment is only an allegation and all
defendants are innocent until proven guilty.
 -30-

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