Berthold USA Pleads Guilty To Misrepresenting That Packages Used To Ship Radioactive Materials Had Been Properly Tested

KNOXVILLE, Tenn. - Berthold Technologies, USA (Berthold), of Oak Ridge, Tennessee, has entered into a plea agreement with the U.S. Attorney’s Office for the Eastern District of Tennessee in which Berthold admits that it falsely represented that devices shipped in interstate commerce had been tested to meet the requirements of the U.S. Department of Transportation for radioactive containers. The devices, used to measure density of fluids used in natural gas fracking operations, were shipped from Oak Ridge to Texas and Oklahoma in March and October 2014.

The plea agreement on file with the U.S. District Court recommends that Berthold be ordered to pay a fine of up to $500,000 at sentencing, with $50,000 to be paid upon entry of the company’s guilty plea in federal court. The plea agreement anticipates that the sentencing hearing be set 18 months after the entry of Berthold’s guilty plea. During the 18 months between guilty plea and sentencing, Berthold will work with the Pipeline and Hazardous Materials Safety Administration of the U.S. Department of Transportation to address any problems that may exist concerning the safety of the devices that have been shipped to Berthold’s customers. Under the terms of the plea agreement, costs associated with remedying any identified problems with the devices will reduce the ultimate fine amount to be paid by Berthold at sentencing.

This investigation was conducted by the U.S. Department of Transportation – Office of Inspector General. Assistant U.S. Attorney Matthew T. Morris is handling the prosecution of the case.