25-, 19-Year Sentences, $25 Million Fine In Upstate NY Asbestos Scam

[hatrack]

SYRACUSE -- "A federal judge sentenced a Loudonville man Thursday to 25 years in prison, his father to 19 years and ordered them both to pay about $25 million in restitution and fines -- the stiffest penalties ever handed down for environmental crimes.

For their roles in directing a massive asbestos cleanup scam, U.S. District Judge Howard Munson ordered Alex Salvagno, 38, and his father, Raul, 71, of Ormond Beach, Fla., to pay more than $23 million into a fund to compensate businesses, institutions and homeowners that face additional and costly cleanups. Also, Alex Salvagno will have to pay the federal government $2.03 million and Raul Salvagno $1.71 million in money laundering fines.

The Salvagnos were found guilty in May of racketeering and conspiracy to violate environmental laws for rushing asbestos abatement jobs at 1,555 buildings, most of them in the Capital Region.

Witnesses testified that Alex Salvagno's company, AAR Contractor of Latham, profited by forcing its workers to clean up asbestos as quickly as possible, by using illegal methods that jeopardized the health of employees and, in many cases, left deadly fibers behind. Their shoddy work went undetected because Salvagno secretly co-owned a firm, Analytical Laboratories of Albany, which was supposed to be testing the job sites. "I'm very pleased with this sentence," said U.S. Attorney Craig Benedict, who prosecuted the case. "It sends the clearest possible message to the asbestos abatement industry that this behavior will not be tolerated."

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http://timesunion.com/AspStories/story.asp?storyID=317329&category=REGIONOTHER&BCCode=HOME&newsdate=12/24/2004