Federal agents shutter Marin sanitary agency for criminal investigation
Brent Ainsworth, Bay Area News Group
San Jose Mercury News
05/14/2009
Federal agents shut down the offices of the Novato Sanitary District on Thursday morning to conduct a criminal investigation.
Jay Green, an assistant special agent with the U.S. Environmental Protection Agency's criminal investigation unit, said he could only say that officers were executing a federal search warrant.
About a dozen investigators wearing FBI jackets took over the building at about 8 a.m., leaving only essential employees to operate the district's plant at the end of Davidson Street. Anybody approaching the building was stopped at the property line and told to stay away.
Standing outside were Beverly James, the district's manager/engineer, and district counsel Kenton L. Alm, an attorney with the Oakland firm of Meyers Nave Riback Silver & Wilson. James said the district was fully cooperating with investigators.
James said the incident has nothing to do with a bank fraud investigation going on after more than $500,000 was electronically lifted from Novato Sanitary accounts at Bank of Marin. Some of the funds have been tracked to former Soviet republics and some money has been recovered.
Allegations of improper cleaning of equipment and overflow of treated water into a nearby pasture were raised at Monday's district board meeting, James said. Those incidents were said to have occurred in 2006 and 2007, but an independent investigator hired by the district did not find evidence of wrongdoing, she said.
Alm said those allegations "were based on vague assertions" "We have worked very hard to provide water quality protection to the community as evidenced by our building of a whole new plant, and we plan to continue working hard," James said.
Alm said the district was not notified of the nature of the allegations that led to the search warrant. He and James said they expected the search to take most of the day. "We don't know what they're looking for," James said.
About 15-20 employees were cleared out of the building so the search could take place uninhibited.
In January 2008, the district was hit with a $153,000 fine for 57 discharge violations over a two-year period. The state Regional Water Quality Control Board levied the fine for discharges into San Pablo Bay.
