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TWO WEST VIRGINIA CORPORATIONS PLEAD GUILTY

Release Date: 11/02/2000
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FOR RELEASE: THURSDAY, NOV. 2, 2000

TWO WEST VIRGINIA CORPORATIONS PLEAD GUILTY

North American Inc., a defunct company formerly located in St. Albans, W.Va., and Matthew J. Taylor and IPI Inc., both of Loudendale, W.Va., each pleaded guilty on Oct. 17 to a variety of federal crimes associated with a scheme to defraud the government. Taylor operated both North American Inc. and IPI Inc. The scheme involved illegally disposing of excess paint in a variety of ways, including spraying it into waterways, and then using fraudulent invoices to charge the state of West Virginia for the paint by falsely claiming it had been used to paint bridges. Taylor also pleaded guilty to violating the Resource Conservation and Recovery Act for illegally storing waste methyl ethyl ketone. IPI pleaded guilty to violating the Clean Water Act by spraying excess paint into Armstrong Creek near Powellton, W.Va.; North American pleaded guilty to mail fraud and was ordered to pay $300,000 in restitution to the West Virginia Division of Highways. When sentenced, Taylor faces up to five years in prison, or up to $250,000 in fines, or both. North America and IPI each face up to $500,000 in fines and up to five years probation. The case was prosecuted by the U.S. Attorney’s Office for the Southern District in Charleston.


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