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Two Virginia Companies and Two Individuals Plead Guilty in False Certificate Case
Release Date: 07/13/2005
Contact: Stacie Keller, 202-564-4355 / firstname.lastname@example.org
(7/13/05) In a case brought before the U.S. District Court for the Eastern District of Virginia in Norfolk, Va., during the week of June 30, ACS Environmental, Inc., of Norfolk, Va.; Air Power Enterprises, Inc., of Portsmouth, Va.; each pleaded guilty to conspiracy to make false statements and to submitting false statements to the Small Business Administration (SBA). In addition, James Schaubach, president of ACS and vice-president of Air Power; and Nicanor Lotuaco, president of Air Power, each pleaded guilty to making false statements to the SBA. The defendants purchased false asbestos and lead abatement training certificates for employees of ACS and Air Power from F&M Environmental Technologies, Inc. F&M was convicted of selling false certificates in 2001. The certificates, which claimed employees had training they did not have, were used to obtain federal program minority set-aside contracts. From 1999-2004, Air Power received $37 million worth of these contracts for abatement activities and sub-contracted the work to ACS. Workers who perform asbestos and lead abatement activities without proper training are at serious risk of significant health consequences, including lung cancer and neurological disorders. The case was investigated by the Washington, D.C., Area Office of EPA's Criminal Investigation Division, the Defense Criminal Investigative Services, the FBI, the SBA's Office of Inspector General, the NASA Office of Inspector General, the Army Criminal Investigations Division, the Defense Contract Audit Office, and the Virginia Department of Professional and Occupational Regulation. It is being prosecuted by the Environmental Crimes Section of the U.S. Department of Justice and the U.S. attorney's office in the Eastern District of Virginia.