You thought major American corporations no longer have to plead guilty when they commit crimes.
Well, they do if they are antitrust crimes.
Or environmental crimes..
Case in point — Wal-Mart.
Wal-Mart plead guilty this week to a series of environmental crimes.
Wal-Mart will pay $81.6 million for its unlawful conduct.
Wal-Mart was represented by Raymond Ludwiszewski of Gibson Dunn in Washington, D.C.
Federal officials alleged that Wal-Mart did not have a program in place and failed to train its employees on proper hazardous waste management and disposal practices at the store level.
As a result, hazardous wastes were either discarded improperly at the store level – including being put into municipal trash bins or, if a liquid, poured into the local sewer system – or they were improperly transported without proper safety documentation to one of six product return centers located throughout the United States.
“By improperly handling hazardous waste, pesticides and other materials in violation of federal laws, Wal-Mart put the public and the environment at risk and gained an unfair economic advantage over other companies,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
“Wal-Mart acknowledged responsibility for violations of federal laws and will pay significant fines and penalties, which will, in part, fund important environmental projects in the communities impacted by the violations and help prevent future harm to the environment.”
Wal-Mart owns more than 4,000 stores nationwide that sell thousands of products which are flammable, corrosive, reactive, toxic or otherwise hazardous under federal law.
The products that contain hazardous materials include pesticides, solvents, detergents, paints, aerosols and cleaners.
Once discarded, these products are considered hazardous waste under federal law.
Wal-Mart pled guilty in San Francisco to six misdemeanor counts of negligently violating the Clean Water Act.
The six criminal charges were filed by the U.S. Attorney’s Office in Los Angeles and San Francisco — each office filed three charges — and the two cases were consolidated in the Northern District of California, where the guilty pleas were formally entered before U.S. Magistrate Judge Joseph C. Spero.
As part of a plea agreement filed in California, Wal-Mart was sentenced to pay a $40 million criminal fine and an additional $20 million that will fund various community service projects, including opening a $6 million Retail Compliance Assistance Center that will help retail stores across the nation learn how to properly handle hazardous waste.
In the third criminal case, Wal-Mart pled guilty in the Western District of Missouri to violating FIFRA.
According to a plea agreement filed in Kansas City, beginning in 2006, Wal-Mart began sending certain damaged household products, including regulated solid and liquid pesticides, from its six return centers to Greenleaf LLC, a recycling facility located in Neosho, Missouri, where the products were processed for reuse and resale.
Because Wal-Mart employees failed to provide adequate oversight of the pesticides sent to Greenleaf, regulated pesticides were mixed together and offered for sale to customers without the required registration, ingredients, or use information, which constitutes a violation of FIFRA.
Between July 2006 and February 2008, Wal-Mart trucked more than 2 million pounds of regulated pesticides and additional household products from its various return centers to Greenleaf. In November 2008, Greenleaf was also convicted of a FIFRA violation and paid a criminal penalty of $200,000 in 2009.
Pursuant to the plea agreement filed in Missouri, Wal-Mart agreed to pay a criminal fine of $11 million and to pay another $3 million to the Missouri Department of Natural Resources, which will go to that agency’s Hazardous Waste Program and will be used to fund further inspections and education on pesticide regulations for regulators, the regulated community and the public.
In addition, Wal-Mart has already spent more than $3.4 million to properly remove and dispose of all hazardous material from Greenleaf’s facility.
Wal-Mart will pay a $7.628 million civil penalty that will resolve civil violations of FIFRA and Resource Conservation and Recovery Act (RCRA). In addition to the civil penalties, Wal-Mart is required to implement a comprehensive, nationwide environmental compliance agreement to manage hazardous waste generated at its stores.
The agreement includes requirements to ensure adequate environmental personnel and training at all levels of the company, proper identification and management of hazardous wastes, and the development and implementation of Environmental Management Systems at its stores and return centers.
Compliance with this agreement is a condition of probation imposed in the criminal cases.