Environmental Crimes Bulletin October 2022

On October 7, 2022, prosecutors unsealed an indictment charging Teo Boon Ching, aka Zhang, Dato Sri, with participating in a conspiracy to traffic more than 70 kilograms of rhinoceros horns (valued at approximately $725,000. Ching laundered the proceeds from the rhinoceros horn sales (18 U.S.C. §§ 371, 1956 (a)(3)(B), (c)(7)(G)).

Authorities arrested Ching, a citizen of Malaysia, in Thailand in June 2022. He was extradited to the United States on October 7, 2022. Ching led a transnational criminal enterprise (the Enterprise) based in Asia (with additional operations in Malaysia and Thailand) that illegally trafficked and smuggled rhinoceros horns around the globe. Ching acted as a specialized smuggler, transporting rhinoceros horns from poaching operations in Africa to primarily Asian customers. Ching also shipped rhinoceros horns to the United States.

Between July 2019 and August 2019, Ching met with a confidential source (CS) to negotiate the sale of rhinoceros horns. He sent the CS numerous photographs of rhinoceros horns available for sale. In August 2019, the CS purchased 12 rhinoceros horns from Ching, with instructions from Ching to deposit the cash into numerous Chinese bank accounts to disguise the origins, source, and purposes of the monetary transactions. On August 23, 2019, Ching arranged for his co-conspirators to deliver 12 rhinoceros horn pieces to undercover law enforcement personnel in Bangkok, Thailand. A U.S. Fish and Wildlife Service forensics laboratory examination confirmed that two horn pieces belonged to black rhinoceros with the other 10 pieces from white rhinoceros horns, both endangered species.

The U.S. Fish and Wildlife Service conducted the investigation, with assistance from the Royal Thai Government, and the Embassy of the United States in Bangkok.

On October 5, 2022, prosecutors charged Trisha D. Meyer with violating the Endangered Species Act and the Lacey Act for illegally selling a jaguar cub (16 U.S.C. §§ 1538(a)(1)(E), (a)(1)(F), 1540(b)(1), 3372(a)(2)(C), (a)(1),3373(d)(1)(B)). Trial is scheduled to begin on January 3, 2023.

During the spring of 2021, Meyer sold Abdul Rahman a live jaguar cub. Prior to the sale, Meyer posted photographs and videos of herself on Instagram with the cub in California, offering to sell it for $30,000, plus an additional $1,000 for shipment to Rahman, a Texas resident.

Rahman owned the jaguar for a few months before selling it to another buyer for $20,000. The buyer (who lived with a pregnant woman) later decided it unwise to keep the animal in the same house as a newborn child. He took the jaguar to a rescue center in September 2021, which continues to care for the animal.

The United States Fish and Wildlife Service and the California Department of Fish and Wildlife conducted the investigation.

On October 31, 2022, Derrick Twitty pleaded guilty to conspiracy to violate the Animal Welfare Act anima fighting prohibitions, and sponsoring and exhibiting an animal in an animal fighting venture (18 U.S.C.§ 371; 7 U.S.C § 2156(b)). Co-defendant Laddie Dwayne McMillian pleaded guilty on October 24, 2022, to similar charges.

Between May 2017 and February 2022, the defendants used more than 45 animals in fights, including a dog named “Slick Rick” that McMillian sponsored in a fight in January 2022. Slick Rick died 20 days later. The evidence included multiple communications between the two and others, through which they shared graphic video of fight events and pictures of the injured dogs.

The U.S. Department of Agriculture Office of Inspector General and the Polk County Sheriff’s Office conducted the investigation.

On October 18, 2022, Alexander B. Mischenko pleaded guilty to violating the Clean Air Act failure to notify provision for his involvement in an illegal asbestos abatement project (42 U.S.C. § 7413(c)(2)(B)). Sentencing is scheduled for January 24, 2023.

Property management company, Hanson Industries, Inc., owned a building that previously housed a metal production facility. Mischenko owns and operates Buck Creek Sales. In October 2017, Hanson Industries contracted with Mischenko, through Buck Creek Sales, to dismantle the building and salvage the wood. Pursuant to the contract, Hanson paid Mischenko to obtain an asbestos survey and the Clean Air Act permit required to legally demolish the building.

In November 2017, a certified asbestos inspector conducted a survey of the property, finding 2,600 linear feet of friable thermal systems insulation (TSI) in the form of piping insulation containing up to 60% chrysotile asbestos. The following month, Mischenko received the report and knew that a licensed asbestos contractor had to remove this material prior to any renovation activity.

In spite of this knowledge, in January 2018, Mischenko and untrained workers removed the asbestos from the piping, scattering large amounts of dry and friable TSI in the process. They bagged up the asbestos in super sacks that were not leak tight and were not properly labeled. Mischenko also failed to notify the Spokane Regional Clean Air Agency (SRCAA) prior to the renovation work, as required.

In March 2018, SRCAA inspectors observed renovation activity at the property, and the ensuing investigation revealed that a large amount of TSI was left scattered on the floor and the sacks of TSI were being improperly stored in another building. Over the course of several conversations with SRCAA inspectors, Mischenko denied knowing about any asbestos on site. After samples confirmed TSI on the premises, Mischenko finally admitted his responsibility for removing the asbestos and placing it in sacks, without following proper procedure.

The Spokane Regional Clean Air Agency and the U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

On October 13, 2022, James D. Withrow pleaded guilty to conspiracy to commit depredation against a property of the United States (18 U.S.C. § 371). Sentencing is scheduled for January 18, 2023.

On May 31, 2018, Withrow and Bruce A. Jackson removed 17 55-gallon drums from Jackson’s property in Seward and placed them on a tractor trailer driven by Withrow. The two men then drove to Anchorage. The next day, Withrow drove the tractor trailer off the Seward Highway down a road clearly marked “No Dumping” “No Public Access.” Withrow parked and proceeded to dump 15 of the drums at the Granite Creek Recreation Area in the Chugach National Forest, which is U.S. Forest Service land.

Coincidentally, Forest Service biologists working in the area noticed someone had removed locks from an access gate. They observed Withrow after he dumped 15 of the 17 drums, leaving two on the trailers. Some of the drums leaked, causing approximately $80,000 in damage. The biologists alerted the authorities to investigate further. When questioned by U.S. Forest Service officials, Withrow falsely claimed that he transported the drums to Anchorage, rather than dumping them after Jackson hired him to pick them up.

Jackson was sentenced in August 2022 to complete a four-year term of probation, perform 500 hours of community service, and pay $88,000 in restitution to the U.S. Forest Service. Jackson pleaded guilty to conspiracy to commit depredation against a property of the United States (18 U.S.C. §§ 371, 1361).

The U.S. Forest Service and the U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

On October 11, 2022, William Todd Walker and Walker Industries, LLC., pleaded guilty to violating the Clean Air Act (CAA) for their involvement in an illegal demolition project at a Howard Johnson’s Hotel. William Walker pleaded guilty to a CAA negligent endangerment violation (42 U.S.C. § 7413(c)(4)), and Walker Industries pleaded guilty to a CAA National Emissions Standard for Hazardous Pollutants violation (42 U.S.C., § 7413(c)(1)).

In October 2017, the South Carolina Department of Health and Environmental Control (DHEC) received a complaint regarding an asbestos abatement project in process at the Howard Johnson’s hotel located in Florence, South Carolina. Investigators determined that Howard Johnson hired Walker Industries and company owner, Todd Walker, to conduct the demolition project. In July 2017, Walker received an asbestos survey that indicated the presence of asbestos onsite, requiring proper removal. Walker chose to ignore the survey results and failed to employ the proper asbestos abatement procedures. Instead, he directed untrained workers to remove the walls from multiple buildings.

After receiving the complaint, DHEC and the U.S. Environmental Protection Agency conducted several inspections of the property. They found that Walker’s workers used power sanders and hand tools to remove spray-applied texture to the ceilings. They scattered asbestos–contaminated-material (ACM) debris around the site, in some areas about an inch thick. Inspectors found material from the old lobby in a dumpster about ten yards from the structure. Samples from the dumpster exhibited similar properties as samples taken within the structure. Walker and his workers caused a negligent release of asbestos (a hazardous air pollutant) into the air, with the potential for harming workers on site, as well as guests.

The U.S. Environmental Protection Agency Criminal Investigation Division and the South Carolina Department of Health and Environmental Control conducted the investigation.

On October 6, 2022, Elite Sky International (ESI) pleaded guilty to violating the Lacey Act for illegally selling spiny lobster and shark fins (16 U.S.C. §§ 3372(d), 3373(d)(3)(A)(i); 18 U.S.C. § 2.). Sentencing is scheduled for February 2, 2023.

ESI engaged in the wholesale export of live spiny lobster and various species of shark fins to markets in China. ESI utilized the services of customs brokers to effectuate the shipments to China, including preparing all necessary airway bills, labels, invoices, and documents to accompany the seafood products.

Between November 2018 and October 2019, ESI could not keep up with customer demand in China for spiny lobster harvested in Florida. In response to the shortfall, ESI purchased spiny lobster from Nicaragua and Belize. When shipped from Florida to China, employees falsified shipping documents for the foreign-origin lobster, identifying the product as "Live Florida Spiny Lobsters, Product of U.S.A." Employees shipped approximately 64,000 pounds of falsely labelled foreign-origin lobster.

The company also acquired various species of shark fins from a commercial fisherman in Florida. Workers falsely labeled these shipments of shark fins to China as spiny lobster or as "Frozen Fish." Between November 2018 and October 2019 airway bills, inventories, and export documents reflect that ESI employees falsely labeled close to 6,000 pounds of shark fins.

The National Oceanic and Atmospheric Administration, the Florida Fish and Wildlife Conservation Commission, and Homeland Security Investigations, conducted the investigation.

During the spring of 2022, a grand jury charged 19 individuals in four separate indictments with various offenses related to animal fighting and cruelty related to rooster fights.

In the first indictment, prosecutors charged Cruz Alejandro Mercado-Vazquez with attempted bribery and possessing animals for the purpose of using them in an animal fighting venture (18 U.S.C. 666(a); 7 U.S.C. § 2156(a)). On September 9, 2022, Mercado - Vasquez pleaded guilty to attempting to bribe a Mason County Sheriff for offering the Sheriff more than $5,000 for law enforcement protection of an animal fighting venture. Mercado-Vasquez is scheduled for sentencing on January 3, 2023.

In the second indictment, prosecutors charged Rickie Dale Johnson, Jacklyn Rachelle Johnson, and Harold “Fuzzy” Hale, with conspiracy to sponsor and exhibit animals in an animal fighting venture (18 U.S.C. § 371; 7 U.S.C. § 2156(a)). A superseding indictment added Oakley “Whitey” Hatfield, charging him with conspiracy and attending an animal fighting venture.

Between May and July 2021, Rickie Johnson and Jacklyn Johnson regularly operated animal fighting ventures on property they rented from Hale, known as the Bald Rock chicken pit, located in Laurel County. Hatfield assisted Rickie Johnson and Hale with negotiating the pit rental agreement. Prosecutors also charged the following individuals with exhibiting roosters at this venue: Orville D. Asher, Dallas Cope, Hiram B. Creech, Jr., Bradley Cye Rose, and Joshua Westerfield (7 U.S.C. § 2156(a)(1), (f)(1), (b)).

In August 2022, Rickie Johnson and Hale pleaded guilty to conspiring to sponsor animal fighting at Bald Rock; Cope, Rose, and Westerfield pleaded guilty to possessing roosters for the purpose of having them participate in an animal fighting venture; Creech, Jr., pleaded guilty to causing a minor to attend an animal fighting venture; and Asher pleaded guilty to attending an animal fighting venture. Jacklyn Johnson and Whitey Hatfield are scheduled for trial to begin on March 23, 2023.

In the third indictment, Millard Oscar Hubbard, Timothy Sizemore, Beachel Collett, Lester Collett, and Justin Smith, were charged with conspiring to sponsor and exhibit animal fighting ventures. Sizemore also promoted the events (18 U.S.C. § 371; 7 U.S.C. §§ 2156(a)(2),(f)). Between November 2018 and January 2020, the defendants conspired to operate weekly animal fighting ventures at Riverside Game Club, in Manchester, Kentucky, owned and operated by Hubbard. With assistance from Beachel and Lester Collett, Sizemore organized the fights, including: cataloging the entry fees and rooster weights, documenting weapons used for each bird, and tracking wins and losses. Sizemore advertised the fights, including on Facebook, as “fishing tournaments.” Hubbard collected admissions fees and rented trailers to participants.

Sizemore also operated a weekly fight at a separate venue, known as the Blackberry chicken pit, located in Pike County, Kentucky. Sizemore and others held weekly fights at that location between May 2020 and December 2021. A superseding indictment added Perry Hatfield for his role in operating Blackberry. All six of these defendants pleaded guilty on September 23, 2022, to conspiracy to sponsor the animal fighting ventures at Riverside and Blackberry. They are scheduled for sentencing in December 2022.

In the fourth indictment, Walter H. Mitchell, Jerrard McVey, and Linda McVey, are charged with conspiracy to knowingly sponsor and exhibit animals in an animal fighting venture, in connection with “The Valley”, a chicken pit on the border of Nicholas and Fleming Counties (18 U.S.C. § 371). Between June and July 2021, the defendants and others held weekly rooster fights at the Valley, collecting admission fees, and selling concessions and merchandise to dozens of individuals who participated in and attended the animal fighting events. The McVeys organized the participants into various fights, cataloging the entry fees, the weight of the roosters, tracking the weapons used on the animals, arranging the fights, and cataloging the wins and losses.

The U.S. Department of Agriculture Office of Inspector General, the Federal Bureau of Investigation, the Kentucky State Police, and the Indiana Gaming Commission conducted the investigation.

On October 26, 2022, a court sentenced Arturo Ceja, III, to five months’ incarceration, followed by two years’ supervised release. Ceja pleaded guilty to transporting explosives (namely flash powder) without a license following a massive explosion that injured 17 people and displaced several families (18 U.S.C. § 842(a)(3)(A)).

Between April and June 2021, Ceja purchased commercial-grade fireworks and homemade explosives from Nevada and other states, transporting them to California in U-Haul trucks. Ceja had planned to sell the fireworks throughout his neighborhood, despite not possessing a license or permit to transport explosives. Ceja purchased the commercial-grade fireworks from “Area 51” and “Black Jack Fireworks” (both wholesale dealers located in Pahrump, Nevada) using the customer name “Autron.”

Responding to a tip on June 30, 2021, Los Angeles police found more than 32,000 pounds of fireworks stored at Ceja’s residence, a densely populated residential neighborhood in South Los Angeles. Ceja stored some of the explosives near a gas grill. The bomb squad accidentally blew up an armored containment vehicle (ACV) used to safely detonate explosives, causing an explosion while attempting to destroy the homemade fireworks, including M100s, M3000s, and a mortar covered in tin foil.

The LAPD bomb squad packed nearly 40 pounds of the most volatile and dangerous homemade fireworks into an ACV that was only rated for 33 pounds. Authorities planned to safely detonate the fireworks at the scene (due to their instability) but the ACV exploded, causing debris to rain down on scores of residences, businesses, and vehicles. Authorities transported 17 individuals (which included residents and first responders) to local hospitals. The explosion displaced dozens of people.

The Los Angeles Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Department of Transportation Office of Inspector General conducted the investigation.

On October 24, 2022, a court sentenced Joshua Anders Rae to complete a five-year term of probation during which he is banned from all U.S. Forest System lands, National Parks, the National Elk Refuge, and Bureau of Land Management lands. The court revoked Rae’s previous term of probation ordering him to serve 90 days’ probation with 90 days’ home detention for violating probation. A new order for restitution will be forthcoming.

In March 2022, prosecutors charged Rae with a felony violation of the Lacey Act for unlawfully transporting illegally possessed wildlife (shed elk antlers) collected from a closed area (16 U.S.C. §§ 3372(a)(1),(a)(4), 3373(d)(1)(B)). Rae previously pleaded guilty to a misdemeanor Lacey Act violation in 2019 for similar activity and was still under probation.

Large concentrations of elk spend the winter months in the National Elk Refuge. The Refuge is a major national attraction. National Forest lands east of the Refuge are known to contain high concentrations of shed elk antlers due to the presence of wintering elk, both on the National Wildlife Refuge, as well as the adjacent National Forest. Shed antler collection season begins on May 1st, at which point the public is authorized to access the area. Historically, hundreds of people wait in line throughout the night of April 30th, awaiting legal access to the closure area the following morning.

Brown shed elk antlers (grade A) may bring $13-$15 per pound at current open market prices. There has been a growing trend to use shed elk antlers as dog chews, household decorations, and other commercial products.

U.S. Forest Service Officers apprehended Rae in his camp after dark on April 30, 2021, in the Bridger-Teton National Forest in the District of Wyoming, adjacent to the Refuge. Officers seized approximately 44 pounds of elk antlers that Rae sawed into short sections and cached in a rotten log. Rae operates an online company that sells elk antler sections as dog chews. Based on per ounce pricing advertised on the site, the antler sections Rae collected were valued between $2,156 and $2,464.

The U.S. Forest Service conducted the investigation.

On October 5, 2022, a court sentenced Jorge Murrillo to 15 months’ incarceration for conspiring to violate the Clean Air Act (CAA) by importing more than 300,000 kilograms of illegal hydrochlorofluorocarbon-22 (HCFC-22) from China valued at $1.5 million (18 U.S.C. §§ 371, 545).

HCFC-22 refrigerant is widely used for residential heat pump and air-conditioning systems. Authorities have scheduled HCFC-22 for phase out, with a limited number of individuals and companies allowed to legally import HCFC 22 via an “Unexpended Consumption Allowance” or UCAs.

Between June and August 2007, Murrillo smuggled large quantities of HCFC-22 into the United States to sell on the black market. Murrillo and co-defendant, Norberto Guada, negotiated with a Chinese manufacturer to purchase large quantities and imported the shipments using South Florida ports. At no point did Murrillo, his companies, or associates hold UCAs that would have allowed them to legally import this refrigerant. In total, Murrillo participated in smuggling 309,536 kilograms of HCFC-22 with a market value of $1,525,670, into the United States. Murrillo resided outside the United States from the time of his indictment in 2012 until his arrest in Miami in May 2022.

Guada was sentenced in December 2012, to six months’ incarceration and six months’ home confinement, followed by 18 months’ of supervised release. Guada also paid a $3,000 fine.

The U.S. Environmental Protection Agency Criminal Investigation Division, and Homeland Security Investigations conducted the investigation, with assistance from Customs and Border Protection.