Freedom pleads guilty to criminal pollution

CHARLESTON, W.Va. Freedom Industries on Monday pleaded guilty to three water pollution crimes that prosecutors said caused the January 2014 chemical leak that contaminated the drinking water supply for hundreds of thousands of residents in the Kanawha Valley and surrounding communities.

The company already facing millions of dollars in bankruptcy claims and major civil lawsuits could be ordered to pay $900,000 or more in fines when it faces sentencing on June 29.

During an afternoon hearing in Charleston, Mark Welch, who joined Freedom as its chief restructuring officer after the leak and the companys bankruptcy filing, appeared before U.S. District Judge Thomas Johnston to enter pleas on Freedoms behalf.

Guilty, Welch said in response to questions about the two misdemeanors and one felony contained in a 13-page charging document that was made public more than three months ago. Freedom said in December that it had reached agreement to plead guilty to the three criminal charges.

Freedom pleaded guilty to a negligent discharge of pollution into the Elk River and a negligent discharge of refuse material into the river, both misdemeanor counts. The company also pleaded guilty to a knowing violation of its state Department of Environmental Protection-issued Clean Water Act permit, which is a felony.

Among other things, Freedom admitted to allegations that the company did not conduct proper inspections of a chemical tank containing Crude MCHM and consequently failed to repair and/or replace the tank prior to the Jan. 9, 2014, leak.

Also, the company admitted to not ensuring that the tank had a spill-containment area that would control any material that leaked from the tank and keep it out of the river.

Freedom faces potential fines of between $7,500 and $100,000 per day of violation, or a maximum fine of $900,000, or twice the financial loss or gain resulting from the companys conduct.

The companys plea comes after four guilty pleas that U.S. Attorney Booth Goodwin secured with former Freedom officials and as two other former Freedom officials also face criminal charges.

Two former Freedom owners, William Tis and Charles Herzing; plant manager Michael Burdette; and environmental manager Robert Reynolds have already pleaded guilty in agreements with Goodwin. Sentencing hearings for those four officials are set for June.

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Freedom pleads guilty to criminal pollution

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