The Prosecution of Environmental Crimes at the Department of Energy's Rocky Flats Facility
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THE PROSECUTION OF ENVIRONMENTAL CRIMES AT THE DEPARTMENT OF ENERGY'S ROCKY FLATS FACILITY January 4, 1993 Rep. Howard Wolpe Chairman Subcommittee on Investigations and Oversight House Committee on Science, Space and Technology TABLE OF CONTENTS LETTER OF TRANSMITTAL 3 KEY PARTICIPANTS IN THE ROCKY FLATS PROSECUTION 6 I. INTRODUCTION 9 II. SUMMARY OF FINDINGS 12 III. RECOMMENDATIONS 16 IV. THE ROLE OF THE JUSTICE DEPARTMENT 21 V. THE PLEA AGREEMENT 34 A. Background 34 B. Rockwell Settlement Demands 37 1. Individual Indictments: Evidentiary Bases 40 2. Charges with Offsite Implications 67 3. False Statement, Fraud and Conspiracy Charges 79 4. Nolo Contendere Pleas 81 5. Indemnification 83 6. Debarment 87 7. Global Settlement 88 8. Public Statements 89 9. Grand Jury Report 99 10. Summary 100 VI. THE FINE 102 A. Early Prosecution Discussion 102 B. Settling on $15.5 Million and Inching Up 103 C. Conclusion 105 VII. LACK OF INDICTMENTS OF DOE PERSONNEL 108 VIII. THE ROLE OF THE DEPARTMENT OF ENERGY 112 IX. THE SPECIAL GRAND JURY REPORT 121 X. THE EFFECTS OF THE PROSECUTION 141 ENDNOTE -144 GEORGE E BROWN ..ka Caleornm. CHAIRMAN ROBERT S WALKER TenneyNose I JAMES SENSENes1 NNER. A Wixom.. Vi4RW000 L 105 IIUET No. York JAMES H SCHEUER. Neuf York TOM LEWIS Routs MARILYN LLOYD 14,AASAMI CON NETTER Pennersisinie DAN GLICIOLA.N. Rena. SID MORRISON W oh.ngton HAROLD L VOCKMER. Missouri ROM PADICAPO Cael (KN. SOWARD WOLK_ limhmen U.S. HOUSE OF REPRESENTATIVES RAII. I HOMY Mot hp. RALPH W MALL Tm KAMM W CASVELL 'Snow DAVE MCCURDY. Oklahoma LAMAR SON. TOW NORMAN V MINETA, Cali-tome CONSTANCE A. MORELLA. Maryiencl TIM VALENTINE. Nosh Cart:Ana COMMITTEE ON SCIENCE, SPACE, DANA RONRASACHER. CeMornle ROBERT 0 TORRICEW. N. Nosey STEVEN F, BCHiff • kw. Manes RICE SOUCHER. Wens' AND TECHNOLOGY TOM CAMPSELL CsOlorriss TERRY L BRUCE. IERMOM .10104 J RSIOOES. IN. Artrone RICKARD M STALLINGS. Idaho -OE SAXTON Team JAMES A. TRACICANT..k Ohio SUITE 2320 RAYBURN HOUSE OFFICE BUILDING ERCK ZIMMER New kern HENRY J NOWAK. New Yort WAYNE T GILCHREST. Maryland CARL C PERKINS. Kentucky WASHINGTON, DC 20515-8301 SAM JOHNSON. Tsui TOM McMILLEN. Maryland GEORGE ALLEN. Vlegirea DAVID R. NAGLE. low. (202) 225-8371 JIMMY HAYES, Lousuana JERRY F COSTELLO. Minors OADEORD rruty, Jr JOHN TANNER. Tennessee Clue( or Ike GLEN BROWDER AIM:erne MICHAEL ROOEMEVER PETE GEREN. Texas Clue( Cotowe RAY TNORNTON. Asterism RSA BACCHUS. Florida CAROLYN C GREENFELD Cheer Cleft TIM ROEMER. Indiana IWO CRAMER. Alabama DAVID 0 CLEMENT DICK SWETT. New Hampshire Ressubhcon Crier or Stet MICHAEL J KOPETSKI. Oregon JOAN KELLY HORN. Missouri ELIOT L ENGEL New York JOHN W OLVER. Messechuutts January 4, 1993 The Hon. George E. Brown, Jr. Chairman Committee on Science, Space and Technology Dear Mr. Chairman: Since of June 1992, the Subcommittee on Investigations and Oversight has been reviewing the settlement of the Federal Government's investigation and prosecution of environmental crimes by Rockwell Inc. at the Department of Energy's (DOE) Rocky Flats nuclear weapons facility. The enclosed report summarizes what we have learned to date and makes recommendations for the 103rd Congress. This has not been an easy investigation due to the lack of cooperation of the U.S. Department of Justice. As you know, the Subcommittee was forced to issue subpoenas to compel the testimony of Department of Justice attorneys and agents of the Federal Bureau of Investigation involved in this case. Even when the Subcommittee received testimony under oath in closed sessions from four of these individuals pursuant to the subpoenas that were issued, the witnesses, under orders from Justice lawyers, refused to answer questions about their agency's internal deliberations. The Subcommittee was able to resolve this dispute only in the closing days of this session of Congress, which allowed the continuation of this investigation during the recess. At that time, I stated that I would provide you with a personal report of results of the Subcommittee's work before the new Congress convened. The report speaks for itself, but I would like to briefly highlight a few points that I consider particularly important. First, our investigation revealed a very troubling lack of public accountability .in the Federal Government. Serious environmental crimes were committed, but no-individuals were held responsible. The crimes were attributed to a "culture" at DOE -- not the actions of responsible individuals. This is the white collar equivalent of blaming an armed robbery on "society" -- not the individual holding the gun. The Hon. George Brown January 4, 1993 Page 2 Second, it should be noted that the most important thing that Federal prosecutors bargained away in negotiations with Rockwell was the truth. By entering into this plea agreement, the prosecutors bargained away the right to fully and accurately inform the American people and the Congress about the conditions, activities, and crimes at the Rocky Flats facility. Conditions that, I might add, continue to this day even though Rockwell has been replaced as the facility'scontractor. And these conditions are not unique to Rocky Flats; they can be found throughout the DOE complex. By papering over the situation at Rocky Flats, the prosecutors forfeited the opportunity to focus National attention on the crimes committed at Rocky Flats; attention that is necessary to create the political momentum for meaningful reform throughout the DOE complex. Third, I would like to indicate my sympathy for the courageous individuals who served on the Rocky Flats grand jury. I do not condone the violation of Federal law, But these citizens were so offended by the plea agreement with Rockwell that they have placed themselves in legal jeopardy by publicly discussing the settlement. Justice is actively investigating grand jury leaks, in an effort to make a decision in the near future on indicting members of the grand jury. In my view, it would be both ironic and outrageous if the Department of Justice prosecutes the grand jurors themselves with more vigor than they demonstrated in prosecuting Rockwell for serious environmental crimes. Rather than prosecuting these individuals, I think that it would be only fitting if President Bush were to extend pardons to them for any violations of law that they may have committed for speaking their consciences about the Rocky Flats settlement. If Casper Weinberger can be pardoned for crimes resulting from withholding vital information from the Congress and the public, I don't see why these citizens should be prosecuted for providing vital information to the Congress and the public. This report is not the final word on the Rocky Flats prosecution. There are numerous leads that should be pursued before final conclusions can be reached. However, I am confident that this report will help the American people better understand the numerous and complex factors that influenced how their government handled this matter. oward W.•:-, Ch an Subco = ittee on nvestigations and oversight 6 The Prosecution of Environmental Crimes at... KEY PARTICIPANTS IN THE ROCKY FLATS PROSECUTION Justice Department (Headquarters) Joseph (Jerry) Block Chief, Environmental Crimes Section, Until July 1991 Kenneth Buck Assistant U.S. Attorney, Colorado Briefly worked on Rocky Flats case Donald Can Acting Assistant Attorney General Environment and Natural Resources Division, From February 1989 to August 1989; Approved search warrant executed on June 6, 1989 Neil Cartusciello Chief, Environmental Crimes Section, From May 1991 to present Charles (Chuck) De Monaco Assistant chief, Environmental Crimes Section, February 1989 to present Barry Hartman Deputy Assistant Attorney General, Environment and Natural Resources Division, From October 1989 to July 1991; Acting Assistant Attorney General, Environment and Natural Resources Division, From July 1991 to June 1992 William Hassler Trial attorney, Environmental Crimes Section, From March 1990 to April 1991, Assigned to Rocky Flats case Peter Murtha Trial attorney, Environmental Crimes Section, From 1986 to present; Primary headquarters attorney assigned to Rocky Flats case ...The Department of Energy's Rocky Flats Facility 7 KEY PARTICIPANTS IN THE ROCKY FLATS PROSECUTION (Cont.) Criselda Ortiz Trial attorney/supervisory trial attorney, Environmental Crimes Section, From February 1989 to April 1991, and August 1992 to present Richard Stewart Assistant Attorney General, Environment and Natural Resources Division, From August 1989 to July 1991 Robert E. Mueller, ill Assistant Attorney General, Criminal Division, From September 1990 to present John C. Keeney Principal Deputy Assistant Attorney General, Criminal Division Paul Coffey Deputy chief, Organized Crime and Racketeering Section, From October 1988 to July 9, 1990; Acting chief to July 1991; Chief, July 1991 to present United States Attorney's Office, District of Colorado Michael Norton U.S. Attorney, Colorado, March 13, 1988 to present Kenneth Fimberg Assistant U.S. Attorney, Colorado, January 1986 to present Chief, White Collar Crime Section Lead prosecutor, Rocky Flats case 8 The Prosecution of Environmental Crimea at... KEY PARTICIPANTS IN THE ROCKY FLATS PROSECUTION (Cont . ) Federal Bureau of Investigation Jon Lipsky Lead agent on Rocky Flats case; Began developing case in 1987 Environmental Protection Agency William F. Smith Special agent, Office of Criminal Investigation, Lead EPA agent on Rocky Flats case Attorneys Representing Rockwell International Corporation