By Year
2020 Suspension and Debarment Actions
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April 1, 2020 – September 30, 2020
Former Employee Debarred
On February 6, 2020, a former EPA Senior Executive Service official, who served as the director of the National Enforcement Training Institute within the Office of Enforcement and Compliance Assurance’s Office of Compliance, was debarred for three years from participating in federal procurement and non-procurement programs. The individual failed to maintain an active bar membership in at least one state, the District of Columbia, a U.S. territory, or the Commonwealth of Puerto Rico. In addition, he concealed this failure while occupying a position that required bar membership. The investigation determined that the individual, who was hired as an attorney in 1979 and joined the Senior Executive Service in 1991, was classified as a general attorney throughout the individual’s employment at the EPA and, thus, should have maintained active bar membership the entire time. -
Oct 1, 2019 – March 31, 2020
Man Debarred After Illegally Disassembling Bridge, Which Damaged EPA-Owned Water Monitors
On March 2, 2020, Kenneth Morrison and TK Metals Contracting were debarred from holding federal contracts and participating in assistance activities for 13 years—a period that will end August 7, 2033. In 2019, Morrison was sentenced in the U.S. District Court for the Northern District of Indiana to two years of imprisonment, followed by two years of supervised release, and ordered to pay over $54,000 in restitution. In 2018, Morrison was convicted of interstate transportation of stolen goods. In 2015, Morrison was arrested by the Indiana Department of Natural Resources Police Department for illegally disassembling a city rail bridge and stealing the metal for resale. The partial disassembly of the bridge caused remnants of it to collapse into the Grand Calumet River. The OIG investigation found that, as a result of the bridge collapse, several EPA owned water monitors were damaged. The debris removal process also delayed a $12-million EPA dredging project.
2019 Suspension and Debarment Actions
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April 1, 2019 – Sept 30, 2019
Tribal Council Director Debarred After Being Sentenced for Theft
On September 13, 2019, David McGraw, a former accountant and finance director for the Yukon River Inter-Tribal Watershed Council in Anchorage, Alaska, and his company, DKM Enterprises, LLC, were debarred for eight years from participating in federal procurement and nonprocurement programs. Earlier in 2019, McGraw was sentenced in the U.S. District Court for the District of Alaska to 18 months of imprisonment and was ordered to pay $40,604 in restitution for theft and filing a false tax return. In 2018, McGraw was indicted for theft and money laundering associated with work he performed while employed by the council. For fiscal years 2010 through 2014, the council was awarded federal grant money in excess of $1 million, and McGraw willfully misapplied approximately $315,000 of those funds for his personal benefit.The investigation leading to these outcomes was conducted jointly by the EPA OIG, the Federal Bureau of Investigation, the National Science Foundation OIG, and the Internal Revenue Service.
2018 Suspension and Debarment Actions
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April 1, 2018 – Sept 30, 2018
Employee and Organization Debarred for Embezzling Grant Funds
On August 17, 2018, the Mississippi Conference of Black Mayors and an employee were debarred from participating in federal procurement and nonprocurement programs for misappropriating an Environmental Justice Collaborative Problem-Solving grant and an Area-Wide Planning Brownfields grant totaling over $100,000. On several occasions, EPA officials requested that the grantee provide quarterly reports to account for the funds that had been withdrawn, but their requests were ignored. The grantee and the employee were debarred until December 15, 2019.City of Atlanta Official Debarred
On June 1, 2018, Adam Smith, former chief procurement officer for the city of Atlanta, Georgia, was debarred from participating in federal procurement and assistance activities for three years. The investigation stemmed from an ongoing federal investigation into corruption at city hall. Smith was convicted and sentenced for accepting bribes in exchange for lucrative city contracts. Smith was debarred because of the proximity of his work to EPA grants.Contractor Suspended for Damaging EPA Water Monitors
On August 8, 2018, Kenneth Morrison of Indiana and his metal scrapping business were suspended by the EPA from future government contracts because of a 2017 indictment in which he was charged with one count of interstate transportation of stolen property. In 2015, the State of Indiana’s Department of Natural Resources Police Department arrested Morrison for illegally disassembling a city rail bridge and stealing the metal for resale. The partial disassembly of the bridge cause remnants of it to collapse into the Grand Calumet River. The OIG investigation found that, as a result of the bridge collapse, several EPA-owned water monitors were damaged. In addition, the debris removal process affected a $12-million EPA dredging project that was set to begin in April 2015.This case was conducted jointly with the EPA Criminal Investigation Division.
Tribal Council Director Suspended from Government Contracts
On June 19, 2018, the EPA suspended David McGraw, former accountant and finance director for the Yukon River Inter-Tribal Watershed Council in Anchorage, Alaska, from participating in federal contracts and assistance activities pending the outcome of McGraw’s legal proceedings. On March 21, 2018, McGraw was indicted for theft and money laundering associated with the work he performed while employed by the council. From fiscal year 2010 to 2014, the council was awarded federal grant money in excess of $1 million. McGraw allegedly misapplied over $300,000 of these funds for his personal benefit.This investigation was conducted jointly by the Federal Bureau of Investigation, the National Science Foundation’s OIG, and the Internal Revenue Service.
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Oct 1, 2017 – March 31, 2018
Contractor Debarred from Participating in Federal Grants and Contracts
On October 11, 2017, an EPA contractor was debarred from participating in federal contracts and assistance activities for a period of three years. Nirilla Allen-Kearney, a contract employee for the EPA, was arrested at an EPA facility by Internal Revenue Service and Federal Bureau of Investigation investigators, with assistance from EPA OIG investigators. The arrest was conducted in conjunction with the arrests of several other individuals not associated with the EPA for various alleged narcotics violations. No illegal activities were alleged to have occurred at an EPA facility. A federal grand jury in the Eastern District of North Carolina indicted Allen-Kearney and several co-subjects on various charges. Allen-Kearney pleaded guilty to conspiracy to commit money laundering and was sentenced to 24 months in prison. Allen-Kearney was barred from accessing all EPA facilities. In addition, the EPA’s Office of Suspension and Debarment debarred Allen-Kearny from participating in government contracts for three years.This investigation was conducted jointly with the Internal Revenue Service’s Criminal Investigation Division and the Federal Bureau of Investigation.
2017 Suspension and Debarment Actions
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April 1, 2017 – Sept 30, 2017
Individuals Debarred for Participation in Fraud Scheme
On May 15, 2017, Alexander Robert Xavier and three of his associated companies—The Xavier Group, Guardian One Capital Trust, and Guardian One Capital Corporation—were debarred for five years. Xavier made false statements to the EPA by submitting fraudulent surety bonds in connection with an EPA contract. In December 2016, the U.S. District Court for the Southern District of Florida sentenced Xavier, of Jensen Beach, Florida, to 12 1/2 years in prison because of this fraudulent surety bond scheme, which affected numerous federal agencies and government contractors. Xavier was ordered to pay more than $4 million in restitution to 14 federal agencies—including the EPA—as well as contractors. In addition, effective October 2016, Xavier and three of his companies were suspended from participation in federal contracts and assistance programs pending the resolution of legal proceedings. A jury found Xavier guilty of committing major fraud and mail fraud and making a false statement to the U.S. Department of the Army in July 2016. The evidence at trial showed that Xavier issued a large number of worthless bonds to various contractors performing work for government agencies.The $4-million restitution was joint and several with two other codefendants—Kelly A. Spillman and Brian J. Garrahan, both of Delray Beach, Florida—who also participated in the fraudulent insurance bond scheme. In April 2016, Spillman and Garrahan pleaded guilty to conspiracy to commit mail and wire fraud. Effective March 2017, Garrahan; Quantum Partners, a company owned by Garrahan; and Spillman were debarred for five years from participating in federal procurement and nonprocurement programs. Further, in March 2017, an additional 22 entities related to Garrahan or Spillman were debarred for five years.
This investigation is ongoing and is being conducted jointly with the Criminal Investigation Command of the U.S. Army; the Defense Criminal Investigative Service; the U.S. General Services Administration; and the OIGs of the U.S. Departments of Veterans Affairs, Defense, Energy, Housing and Urban Development, and State.
Former Contractor Debarred for Environmental Fraud Scheme
On April 4, 2017, David L. Frisby, of Kiln, Mississippi, was debarred from participating in federal procurement and nonprocurement programs for three years. The EPA’s Office of Suspension and Debarment administered the debarment. Frisby had previously pleaded guilty to one count of conspiracy to commit wire fraud. As a result, Frisby was sentenced to 18 months in prison and ordered to pay $144,216 to his victims. Frisby had used the official EPA seal to create fraudulent certifications and letters related to lead removal. Frisby sent the fraudulent letters and certifications to various customers who purchased lead-drained battery waste removal services that were based on the fraudulent EPA documentation that they received.This investigation was conducted jointly with the EPA’s Criminal Investigation Division.
2016 Suspension and Debarment Actions
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April 1, 2016 – Sept 30, 2016
Small Disadvantaged Business Owner Debarred for False Statements
Following a 2015 criminal conviction, on September 15, 2016, Hemal Jhaveri of Lone Tree, Colorado—owner of SofTec Solutions Inc. in Englewood, Colorado—was debarred from participating in federal procurement and nonprocurement programs for a period of five years. SofTec made false statements to the U.S. Small Business Administration to retain eligibility in the 8(a) Business Development Program, which benefits small disadvantaged businesses. These statements allowed SofTec to obtain preferential treatment in the award of contracts by several government agencies. One U.S. General Services Administration contract paid approximately $1.8 million.This investigation is ongoing and is being conducted jointly with the OIGs of the U.S. General Services Administration and the U.S. Small Business Administration, the Major Procurement Fraud Unit of the U.S. Army’s Criminal Investigation Command, the Defense Criminal Investigative Service, and the U.S. Internal Revenue Service’s Criminal Investigation Division.
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Oct 1, 2015 – March 31, 2016
Mississippi Mayor Suspended from Federal Procurement Following Plea
After pleading guilty to five counts of embezzlement in a Rankin County District Court, a Mississippi mayor was suspended from participating in federal procurement and assistance activities. The mayor had been the treasurer for the Mississippi Board of Mayors that was awarded an EPA cooperative agreement worth $120,000. The mayor misused his city-issued credit card for personal services and was sentenced to 10 years in prison and required to pay restitution. On February 2, 2016, the EPA issued a Notice of Continued Suspension and Proposed Debarment to the mayor.Former Federal Employee Debarred Over Embezzlement Scheme
On November 25, 2015, a former U.S. Department of Agriculture employee was debarred by an EPA suspension and debarment official from participation in federally funded projects for three years. Investigative findings from the U.S. Department of Agriculture OIG determined that the subject—Donna J. Remides, of Jonesville, Louisiana—embezzled $640,000 from the Northeast Delta Resource Conservation and Development Council, which is an EPA grantee in Columbia, Louisiana, over a 10-year period. Remides cashed or deposited checks from the council and a major national retailer and charged fuel for a personal vehicle to a council account. In 2013, the U.S. District Court of the Western District of Louisiana sentenced Remides to 40 months in prison and five years of supervised release for falsifying loan applications to receive loans used to hide the theft. In addition, she was ordered to pay $450,000 in restitution.This investigation was conducted jointly with the Federal Bureau of Investigation and the U.S. Department of Agriculture OIG.