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John Galt Faces Prison For Contaminating West Virginia Water

Back in January, John Galt proclaimed his independence from pesky regulatory oversight in West Virginia when he contaminated the drinking water supply of over 300,000 residents. Recall that Galt did his damage through his appropriately named corporation, Freedom Industries, where he was using the contaminant to magically make coal “clean”. In a remarkable development, though, we learned yesterday that a federal grand jury has indicted six people associated with Freedom Industries:

A federal grand jury on Wednesday indicted four owners and operators of the company whose toxic chemical spill tainted a West Virginia river in January, forcing a prolonged cutoff of drinking water to nearly 300,000 residents in and around Charleston.

Each was charged with three counts of violating the Clean Water Act, which bars discharges of pollutants without a permit. Their company, Freedom Industries, and its owners and managers did not meet a reasonable standard of care to prevent spills, the indictment stated.

One of those indicted, Gary L. Southern, the company’s president, was also charged with wire fraud, making false statements under oath and bankruptcy fraud. Freedom declared bankruptcy days after the spill.

Actual prison time is at stake in these charges:

Besides Mr. Southern, of Marco Island, Fla., the indictment named three other owners and operators: Dennis P. Farrell, 58, of Charleston; William E. Tis, 56, of Verona, Pa.; and Charles E. Herzing, 63, of McMurray, Pa.

Two others were also charged: Robert J. Reynolds, 63, of Apex, N.C., and Michael E. Burdette, 63, of Dunbar, W.Va. Mr. Reynolds was Freedom’s environmental consultant, and Mr. Burdette managed the tank farm. Mr. Herzing, Mr. Tis and Mr. Farrell sold the tank farm to a Pennsylvania company about a month before the accident.

All six were charged with the negligent discharge of a pollutant, negligent discharge of a refuse matter and violating an environmental permit. The violations carry a maximum penalty of three years in prison, according to a statement issued by the United States attorney for the Southern District of West Virginia.

Southern, on the other hand, faces up to 68 years when the additional ten charges he is facing are factored in.

This is a truly remarkable development. Recall that John Galt got away with killing Texans in the massive fertilizer plant explosion in West, Texas that caused over $100 million in property damage in addition to killing 15 and injuring over 200. That investigation was stymied at almost every turn, and no criminal charges were ever filed unless you count the strange prosecution of one of the first responders for possession of homemade bomb-making materials.

But recall that this is Eric Holder’s “Justice” Department that we are talking about here, so it is worth drilling down below the headlines. If we move to more local reporting on the charges, we find typical Holder behavior when it comes to how the company is being treated:

Also, U.S. Attorney Booth Goodwin charged Freedom Industries, the bankrupt company, with the same three counts of criminal water pollution violations. The company was charged through a document called an information, rather than an indictment, a move that usually indicates the defendant has reached a plea deal with prosecutors.

Mark Welch, Freedom’s chief restructuring officer, confirmed that the company had entered into a plea agreement with federal authorities and said the move was aimed partly at limiting the possible fines and criminal defense costs if the company were to be indicted. Welch, in a prepared statement, said the plea agreement also stipulates that the U.S. Attorney’s Office will not seek restitution from Freedom for victims of the company’s crimes, because of the company’s ongoing bankruptcy proceeding.

“This will permit Freedom to focus its time and limited resources on its environmental cleanup obligations and addressing the claims of its creditors,” Welch said.

In the world of Eric Holder (and John Galt), any claims by creditors who helped Freedom Industries to contaminate the Elk River have higher standing than any mere citizen who was harmed by Freedom.

John Galt’s Trail of Death and Destruction Continues to Grow

Building destroyed in West, Texas fertilizer explosion. (Courtesy of State Farm via Flickr under Creative Commons license.)

Building destroyed in West, Texas fertilizer explosion. (Courtesy of State Farm via Flickr under Creative Commons license.)

John Galt has been a deadly and destructive guy lately, with the largest of his most recent attacks taking place in the garment factory collapse in Bangladesh on April 24 where the death toll has now tragically topped 900 and the fertilizer storage facility explosion in West, Texas on April 17 that miraculously killed only fourteen people but injured over 200 and caused damage that is now estimated to exceed $100 million.

In an interesting development, Bangladesh has shown that at least on some fronts it is more civilized than Texas. Both the building’s owner and the engineer accused of colluding with the owner to add three unregulated floors on top of the building have been arrested, while Texas lawmakers, previously known for their refusal to vote in favor of disaster relief when it was in New York and New Jersey, now have called for socializing the losses in Texas. Of course, since the fertilizer plant owner (who has not been arrested) only carried $1 million in liability insurance (and since Texas doesn’t require liability insurance for many businesses operating with dangerous materials), those losses are bound to be socialized anyway.

From CBS News on the response to the disaster in Bangladesh:

Finance Minister Abul Maal Abdul Muhith spoke as the government cracked down on those it blamed for the disaster in the Dhaka suburb of Savar. It suspended Savar’s mayor and arrested an engineer who had called for the building’s evacuation last week, but was also accused of helping the owner add three illegal floors to the eight-story structure. The building owner was arrested earlier.

The government appears to be attempting to fend off accusations that it is in part to blame for the tragedy because of weak oversight of the building’s construction.

It looks like Muhith went a bit too far in trying to deflect responsibility from the government:

During a visit to the Indian capital, New Delhi, Muhith said the disaster would not harm Bangladesh’s garment industry, which is by far the country’s biggest source of export income.

“The present difficulties … well, I don’t think it is really serious — it’s an accident,” he said. “And the steps that we have taken in order to make sure that it doesn’t happen, they are quite elaborate and I believe that it will be appreciated by all.”

The article goes on to point out that Muhith had made a similar hollow promise to improve safety conditions several months ago when a fire in a garment factory killed over a hundred workers.

In a tragic testament to the shoddy conditions in these facilities in Bangladesh, we have word this morning of another eight deaths in a fire in a garment factory. However, this time the fire was after hours and it wasn’t workers who were killed: Read more