Case 4:09-cr-00002-JHM Document 1 Filed 01/07/09 Page 1 of 8 PageID #: 1 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY AT OWENSBORO UNITED STATES OF AMERICA INDICTMENT vs. NO. 18 U.S.C. 42 U.S.C. 18 U.S.C. f'(}tCl? -2 -& ? ? ? 371 300h2 (b) (2) 1001 (a) (2) and (3 ) DANIEL B. LEWIS The Grand Jury charges: COUNT 1 On or about and between July 29, 2004, and December 12, 2007, in the Western District of Kentucky, Union County, Kentucky, and elsewhere, DANIEL B. LEWIS, defendant herein, did knowingly and willfully conspire and agree with others known and unknown to the Grand Jury to: (1) commit the following offenses against the United States, that is: A. To wilfully violate a requirement of an applicable underground injection control program by failing to establish and maintain mechanical integrity on the following Class II underground injection wells in violation of the Safe Drinking Water Act, Title 42, United States Code, Section 300h-2(b) (2) and Title 40, Code of Federal Regulations, Section 144.28 (f) (2) : Case 4:09-cr-00002-JHM Document 1 M.S. Rankin #36-W Bland-Orme #1 Inez Rhea #9 Reiss-Dunker-Durham #7 M.S. Rankin #3 Reiss-Dunker-Durham #9 Inez Rhea #8 J.P. Robinson #1 Bessie Boswell #1 Pike Heirs "B" Highland Creek Coal Co #1; B. Filed 01/07/09 Page 2 of 8 PageID #: 2 To knowingly and willfully make materially false, fictitious, and fraudulent statements and representations and make and use a false writing and document knowing the same to contain a materially false, fictitious, and fraudulent statement and entry, in matters within the jurisdiction of the Environmental Protection Agency, in violation of the False Statements Act, Title 18, United States Code, Section 1001(a) (2) and (3); and (2) to defraud the United States, that is, to hamper, hinder, impede, impair and obstruct by craft, trickery, deceit, and dishonest means, the lawful and legitimate functiorts of the " EPA in enforcing the federal environmental regulations. 2 Case 4:09-cr-00002-JHM Document 1 Filed 01/07/09 Page 3 of 8 PageID #: 3 MANNER AND MEANS It was a part of the conspiracy that the defendant would by deceit and dishonest means, defraud the United States by interfering with and obstructing the lawful governmental functions of the Environmental Protection Agency, in that the defendant would rig underground injection wells by installing an empty piece of pipe in the ground next to the well and then connect it to the wellhead so that the inspector would measure the pressure in the empty pipe, rather than the well. It was further a part of the conspiracy that the defendant would sign off on Mechanical Integrity Test Inspection Forms stating that a well had passed the annular pressure test, when he knew that (due to the rigging described above) the well had not been tested. OVERT ACTS In furtherance of the conspiracy and to achieve the objects thereof, the defendant and his co-conspirators, known and unknown to the Grand Jury, committed and caused to be committed, among others, the following overt acts in the Western District of Kentucky and elsewhere: 1. The defendant constructed and ordered others to construct a section of pipe capped on each end that would hold pressure; 3 Case 4:09-cr-00002-JHM Document 1 2. Filed 01/07/09 Page 4 of 8 PageID #: 4 The defendant buried and ordered others to bury these sections of pipe next to wellheads; 3. The defendant connected and ordered others to connect these buried pipes to the wellheads so that the required annular pressure test would measure the pressure in the buried pipes{ not the underground injection wells; 4. Prior to the scheduled Mechanical Integrity Test{ the defendant ordered others to pre-test the rigged wells to ensure that they would appear to the inspector to pass the" scheduled annular pressure test; 5. On the dates and times listed below{ the defendant or a co-conspirator signed off on a Mechanical Integrity Test Inspection Form stating that a well had passed the annular pressure test{ when in fact (due to the rigging described above) the well had not been tested: July 29{ 2004 August 12{ 2004 August 12{ 2004 August 12{ 2004 August 13{ 2004 August 25{ 2004 September 14{ 2005 M.S. Rankin #36-W Bland-Orme #1 Inez Rhea #9 Reiss-Dunker-Durham #7 M.S. Rankin #3 Reiss-Dunker-Durham #9 Inez Rhea #8 4 Case 4:09-cr-00002-JHM Document 1 September 14, 2005 December 14, 2005 June 30, 2006 June 30, 2006 Filed 01/07/09 Page 5 of 8 PageID #: 5 J.P. Robinson #1 Bessie Boswell #1 Pike Heirs "B" Highland Creek Coal Co #1. In violation of Title 18, United States Code, Section 371. A TRUE BILL. ~~ _~_. .~_--'---.f\_llsA_?_ -----=~=-~L 7 UNITED STATES ATTORNEY DLH:MS:RR:ls 12/11/08 DAVID L. HUBER , FOREPERSON l 5 Case 4:09-cr-00002-JHM Document 1 Filed 01/07/09 Page 6 of 8 PageID #: 6 UNITED STATES OF AMERICA v. DANIEL B. LEWIS PEN A L TIE S Count: NM 5 yr./$250,000/both/NM 3 yrs. Supervised Release NOT ICE ANY PERSON CONVICTED OF AN OFFENSE AGAINST THE UNITED STATES SHALL BE SUBJECT TO SPECIAL ASSESSMENTS, FINES, RESTITUTION & COSTS. SPECIAL ASSESSMENTS 18 U.S.C. ? 3013 requires that a special assessment shall be imposed for each count of a conviction of offenses committed after November 11, 1984, as follows: Misdemeanor: $ 25 per count/individual $125 per count/other Felony: $100 per count/individual $400 per count/other In addition to any of the above assessments, you may also be sentenced to pay a fine. Such fine is due immediately unless the court issues an order requiring payment by a date certain or sets out an installment schedule. You shall provide the United States Attorney's Office with a current mailing address for the entire period that any part of the fine remains unpaid, or you may be held in contempt of court. 18 U.S.C. ? 3571, 3572, 3611, 3612 Failure to pay fine as ordered may subject you to the following: 1. offense. INTEREST and PENALTIES as applicable by law according to last date of For offenses occurring after December 12, 1987: No INTEREST will accrue on fines under $2,500.00. INTEREST will accrue according to the Federal Civil Post-Judgment Interest Rate in effect at the time of sentencing. This rate changes monthly. Interest accrues from the first business day following the two week period after the date a fine is imposed. PENALTIES of: 10% of fine balance if payment more than 30 days late. 15% of fine balance if payment more than 90 days late. 2. 3. Recordation of a LIEN shall have the same force and effect as a tax lien. Continuous GARNISHMENT may apply until your fine is paid. 18 U.S.C. ?? 3612, 3613 If you WILLFULLY refuse to pay your fine, you shall be subject to an ADDITIONAL FINE of not more than the greater of $10,000 or twice the unpaid balance of the fine; or IMPRISONMENT for not more than 1 year or both. 18 U.S.C. ? 3615 Case 4:09-cr-00002-JHM Document 1 RESTITUTION Filed 01/07/09 Page 7 of 8 PageID #: 7 If you are convicted of an offense under Title 18, U.S.C., or under certain air piracy offenses, you may also be ordered to make restitution to any victim of the offense, in addition to, or in lieu of any other penalty authorized by law. 18 U.S.C. ? 3663 APPEAL If you appeal your conviction and the sentence to pay your fine is stayed pending appeal, the court shall require: 1. That you deposit the entire fine amount (or the amount due under an installment schedule during the time of your appeal) in an escrow account with the U.s. District Court Clerk, or Give bond for payment thereof. 2. 18 U.S.C. ? 3572(g) PAYMENTS If you are ordered to make payments to the U.s. District Court Clerk's Office, certified checks or money orders should be made payable to the Clerk, U.s. District Court and delivered to the appropriate division office listed below: LOUISVILLE: Clerk, U.s. District Court 106 Gene Snyder U.S. Courthouse 601 west Broadway Louisville, KY 40202 502/625-3500 Clerk, U.s. District Court 120 Federal Building 241 East Main Street Bowling Green, KY 42101 270/393-2500 Clerk, U.s. District Court 126 Federal Building 423 Frederica Owensboro, KY 42301 270/689-4400 Clerk, U.s. District Court 127 Federal Building 501 Broadway Paducah, KY 42001 270/415-6400 BOWLING GREEN: OWENSBORO: PADUCAH: If the court finds that you have the present ability to pay, an order may direct imprisonment until payment is made. Case 4:09-cr-00002-JHM Document 1 Filed 01/07/09 Page 8 of 8 PageID #: 8 UNITED STATES DISTRICT COURT Western District of Kentucky Owensboro Division THE UNITED STATES OF AMERICA vs. DANIEL B. LEWIS INDICTMENT Title 18 U.S.C. ?? 371: Conspiracy to Defraud the United States. A trup,,;/I _____/7 {i__ Forema'-l-~Clerk Filed in open court this 7th day, o/January A.D. 2009. Bail, $