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Michigan Water Environment
Association
Environmental Lab Fraud
HOW TO STAY OUT OF JAIL
Det. Daniel Kennedy
Michigan Department of Natural Resources
Law Enforcement Division
Environmental Investigations Section
525 W. Allegan Street, Lansing, Michigan
517-284-6640
3 Types of Environmental Labs
Labs owned / operated by regulated business or entity
Third-party contract laboratories
-Small Independents
-Larger Independents
-Corporations
Government laboratories
-Municipal / state
Role in the Regulatory Scheme
Environmental laboratories are used by industry, businesses, and governmental entities to analyze samples of media (soil, water, air) and manufactured substances to:
-Determine chemical composition and /or properties
-Assess whether such chemicals pose human health risks
-Determine whether such media are contaminated and in need of treatment
-Quantify levels of pollutants within such media for the purposes of regulatory compliance
Role in the Regulatory Scheme
(cont’d)
Regulated industries / government operated plants are
issued permits by state or federal regulatory agencies
containing effluent, discharge or emissions limitations as
well as sampling and testing requirements.
Non-regulated industries, businesses, government
facilities submit samples for testing to determine if they
must apply for a permit or otherwise fall under regulatory
authority.
Results Your Supposed To Count On
Sample is collected (regulated entity, client or third party)
Date, time and location of sample is recorded
Sample is given a unique identifier (to prevent mix up)
Sample is properly transported to the lab
Sample is preserved and protected from alteration
Sample is tested using scientifically valid / accepted methods
A laboratory report is generated that documents test results
Testing process / result undergoes a QA / QC review
The Test Method
Specific established test methods are used to determine the
amount or character of the constituent or property required to be monitored.
Testing method must meet certain scientific and/or regulatory
requirements.
The required testing method often will be prescribed in applicable
regulations.
If numerical value is sought, instrument calibration is part of the
method to establish accuracy of the device.
Scientific Integrity
Labs are to report data that accurately characterizes or quantifies
the species or properties of the sample.
Accurate test results based upon generally accepted scientific
principles / methods.
Quality assurance and quality control procedures in place to verify
proper tests were performed and results are consistent with those
tests.
State Accreditation
Most states have a certification program for labs that tests for safe
drinking water.
Several states have established a certification program for labs
operating within the state that test wastewater, water quality,
hazardous waste, air pollutants, or other environmental samples.
National Accreditation
National Environmental Lab Accreditation
Conference (NELAC)
Voluntary association of state and federal
agencies
Purpose is to establish and promote
performance standards for the operation of
environmental labs
What is Lab Fraud?
Any false material statement,
representation or certification
involving the generation or
reporting of laboratory data and
includes knowing alteration or
omission of any material element
Methods Employed
Procedural fraud
Intentional short cuts or deviations from Standard
Operating Procedures
Sample prep, QA Spiking
Measurement Fraud
Altering or forging direct physical measurements
Improper manual integrations, false visual observation
Indicators of Possible Lab Fraud
Physical appearance (disorganized / disheveled)
Inadequate testing machine(s) / equipment
No (or inadequate) written lab procedures
No (or inadequate) QA / QC program / protocol
No (or insufficient) sampling protocol
Unqualified lab technicians
Reports not generated or provided to client
Lab completes form report that client is required to submit to state
Selective reporting
Poor recordkeeping
Potential Consequences of Lab
Fraud
Contaminated drinking water
Contaminated surface water
Contaminated ground water
Unhealthy air quality
Contaminated soil
Improper disposal of hazardous waste
Underreporting of data about hazardous waste sites that
lead to human exposure
Exposure to asbestos fibers in the air resulting
from demolition / renovation
Inaccurate data to policy makers
Permits for new sources of pollution could be
justified because of false data
Data reported higher than actual may prohibit a
new permitted pollution source
How is Lab Fraud Reported?
Laboratory Employees (whistleblowers)
Regulated Entity (permit holders)
Data reviewers and users (government agencies)
Lab certification program auditors
State / Federal environmental agency field inspectors
Ex-spouse or girlfriend/boyfriend (We get the information
quick because they will be back in love tomorrow)
Why is Lab Fraud Committed?
Economic benefit
Time Constraints
vs. Low risk of detection
Overly burdensome contract requirements
Unqualified personnel
Inadequate technology
State regulations
Low Risk of Detection
States have either no certification program or one that is limited in
scope, with few enforcement mechanisms or resources.
Regulatory focus is on the regulated (i.e., permitted) facility
Legal requirements to sample, test, and keep records is on
permittee
Lack of jurisdiction to perform routine administrative inspections of
independent laboratories
Permittee’s certification of environmental reports is either not required or enforced by regulatory agency
State regulatory agencies allow lab to submit required reports for
permittee
So How Do You Stay Out Of Jail?
1. Do you have integrity?
2. Do you send in reports
that look like this?
Did you notice every entry, every day was the
same except the initials?
The pen used was the same.
The sample fridge, drying oven muffle furnace,
BOD incubator, BACTI incubator, and auto-
clave all contained the same numbers for a
month.
What is Wrong Here?
White out and EZcorrect tape was a hot
commodity for this lab prior to sending
them in to Water Resources Division.
Same as in the chart in the next slide.
But fraud does not have to be so flagrant
to be caught.
WHAT IS WRONG WITH THIS PICTURE?
Additional Ways
Billing for services not completed
Copying previous years test results
because of instrument failure,
forgetfulness, laziness, and lack of time.
Missed hold times
Examples of Lab Fraud Prosecutions“Let’s Hope It’s Not You”
1. A month ago, a former chemist at a now-shuttered state drug lab
in Boston was indicted on 27 counts of obstructing justice, tampering with evidence, perjury and other charges in connection with her
handling of some of the tens of thousands of drug cases she worked
on during her nine years there.
2. After the closure a lab in New York, the Governor ordered the
state’s inspector general to investigate. Her findings, detailed in a
166-page report, cited a litany of failures she described as profound,
including weak leadership, a dysfunctional quality management
system, inconsistently trained and qualified analysts, and outdated
and inconsistent testing procedures.
Federal Case U.S. Tennie VS
Tennie-White December 2017
US v. Tennie-White Southern District – Tennessee
U.S. v. Tennie White--Background
Tennie-White was the sole proprietor of Mississippi
Environmental Analytical Laboratories (MEAL), Inc.,
established in Jackson in 1995
Business was to test environmental samples
submitted by paying clients
White also started Troubleshooters, Inc., an environmental consulting
business, with Robert Wilson in 2004.
To start her lab business, White applied for and received a loan for
$165,000 that was funded by the State.
She also received a private loan for an additional $124,000.
Robert Wilson was hired as Environmental Manager of an auto parts manufacturer located in Water Valley, MS.
Wilson hired Tennie-White to analyze manufacturer’s industrial waste water samples per its indirect discharge (pre-treatment) permit issued by Mississippi Department of Environment Quality.
The manufacturer collected waste water samples monthly and sent them to the contracted lab for analysis.
Prior lab service provider created report of sample test results and sent them back to client manufacturer to help complete DMR’s submitted to MDEQ.
Tennie-White, however, prepared the Discharge Monitoring Reports (DMRs) to be signed by manufacture's environmental manager and submitted to MDEQ.
During interviews with EPA-CID, Tennie-White claimed she sent
client’s waste water samples to 3rd party lab --but she couldn’t remember the name.
Tennie-White blamed former business partner Robert Wilson for
creating the fictitious lab report
6 months later, after further investigation, she later recanted
Search of hard drive Tennie-White used for both businesses revealed
that she created the fictitious document by electronically cutting
and pasting from an authentic report from another lab (CAS).
SHE LIED!!!!
Tennie-White was found guilty by jury of 2 counts
of making false statements (for the DMRs and
lab report) and 1 count of obstructing
proceedings (lying to CID agent)
At the sentencing hearing, Gov’t introduced
evidence of additional uncharged false
statements and fraud)
Tennie-White received 40 months prison
It is up to you whether you want to do the right
thing each and every time
Yes, state regulations and EPA protocol can be
bothersome.
BUT they are in place for a reason
It is for the safety and welfare of yourself, the
citizens in your communities and the State of
Michigan
Questions?
THANK YOU.