U.S. Attorney: Baker Man and Trucking Company Ordered to Pay $1.29 Million, Face Prison for Fraud and Violating Laws Regulating Transporting Hazardous Materials
U.S. District Judge
Watters also ordered forfeiture of a personal money judgment of
A federal jury convicted Wood and his company on 13 of 14 counts after an eight day trial in May. Both defendants were convicted of conspiracy, wire fraud, mail fraud, obstruction of justice and hazardous materials shipping paper and placarding violations. The one count of acquittal related to a placarding violation.
In a sentencing memo, Assistant
The case arose after a
Previous bills of lading that accompanied Woody's shipments falsely identified the product as "slop oil and water," which is a non-hazardous substance. On the date of the explosion, the driver was pumping from the truck's front tank into the CCP facility, when flammable vapors from the drip gas ignited and caused an explosion, injuring three employees. The tanks on the truck burned for eight days. It was determined later that the truck contained drip gas and not slop oil and water. Drip gas is a hazardous material and the truck was not placarded to indicate it held a flammable liquid.
Witnesses at trial testified that Wood, the CEO of the trucking company, directed the driver to place a falsified bill of lading in the burned out truck several days after the explosion. The reason was to cover up the fact that the company was hauling drip gas without placards. The false bill of lading also was submitted to the company's insurance company and to the
Later, employees of the burned facility sued Woody's Trucking, the owners of the CCP facility and others for negligence in a civil action. Woody's submitted the lawsuit to its insurance company for payment of costs, attorney fees and payment of the eventual settlements to the injured workers. The insurance company agreed to settle the claims, but always maintained that Woody's Trucking failed to disclose that it was transporting hazardous materials.
The insurance company made coverage related payments after the explosion on behalf of Woody's Trucking. The company paid
"We believe today's sentencing sends a strong message to those responsible for properly handling and transporting hazardous material," said Jeffrey Dubsick, Regional Special Agent in Charge for the
Assistant
The case was investigated by the
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