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ON THE QT

Everything You Always Suspected--
But Don't Breathe a Word!

Carola Von Hoffmannstahl-Solomonoff
Publisher and Editor

WELCOME

to QT #21, celebrating Winter fun. Snow has been light in the Northeast but the blizzard of corruption indictments continue. Those who prefer finer particles of white stuff can always do something called

RIP & SKIP;

an illegal form of asbestos removal which can produce a veritable snow storm of lung cancer dust. For roughly three years what has been called the largest investigation and prosecution of environmental crime in U.S. history has been grinding along in upstate New York. Its focus is the asbestos abatement industry, which deals with the removal and treatment of asbestos from older buildings and also trains workers to receive certification for safe handling procedures. Every major metropolitan area in the Northern District of New York State including Albany, Schenectady, Troy, Syracuse and Utica is involved and the investigation may be widening. Indictments have been delivered across state lines. The huge number of impacted properties and related fraud charges (money laundering, mail fraud, bid rigging, tax evasion) has resulted in an equally huge number of participating law enforcement agencies. Such as the Environmental Protection Agency Criminal Investigation Division, the U.S. Postal Service, the U.S. Army's Criminal Investigation Division, the IRS and the U.S. Attorney's Office for the Northern District of New York. State agencies include the Departments of Health and Labor. A tangle of asbestos abatement companies, some operating under several names, were the starting point for the investigation. Convictions and guilty pleas followed the initial indictments. The guilty began to "cooperate with government investigators". The Domino theory may have been a wack justification for the Vietnam War, but it sure seems an effective strategy in corruption cases.

ANALYZE THIS

Analytical Laboratories Of Albany (ALA) toppled in 2000. Operating since 1990, ALA was supposed to be an impartial testing facility, verifying whether asbestos had been removed and properly treated. By law, such laboratories cannot be owned by abatement companies. But in September 2000, eight months after lesser ALA executives entered guilty pleas, ALA owner Timothy Carroll pled guilty to conspiracy to violate the Clean Air Act along with a host of other fraud charges. Most relating to faking abatement findings and hiding the fact that ALA was half owned by an abatement company: A.A.R Contractor Inc. headed by Alexander "Alex" Salvagno. In business since 1988, A.A.R. Contractor was one of the largest and most prominent abatement companies in the upstate region and worked on an impressive roster of buildings, including colleges, public schools, courthouses, churches, prisons, banks, hotels, apartment buildings, public housing projects, homes for the elderly, stores, factories, hospitals, a U.S. Army arsenal and even the New York State Capital. Some of the properties seem to have also been worked on/over by other abatement companies whose principals have already been convicted in the course of the investigation. A goodly number of these properties received the stamp of abatement approval from ALA.

THE LATEST AND THE GREATEST?

This year, the day before Valentine's day, Alex Salvagno, his father Raul Salvagno of Ormond Beach, Florida (vice president and co-owner of A.A.R.) and seven others received a bouquet of Federal racketeering indictments relating to A.A.R. activities. If found guilty, Alex Salvagno could serve 79 years in federal prison. In this unlikely event to whom would he pass the torch of his recent venture, AAR Environmental Services? Though A.A.R. Contractor closed several years ago, AAR Environmental Services succeeded it at the same address. In July 2000, amidst licking flames of federal investigations, Fleet National Bank brought a foreclosure action against A.A.R. Contractor and sought to repossess collateral on a $600,000 loan made in July 1999. Part of the collateral Fleet hoped to seize was A.A.R Contractor's place of business.

STAND BY YOUR MAN

The asbestos industry prosecutions have been no secret. Stories started appearing in numerous upstate papers and environmental trade publications several years ago. The EPA and the U.S. Justice Department have issued a string of press releases in which the serious nature of the investigations are made clear: Timothy Carroll's guilty plea in September 2000, with his statement regarding ALA's hidden ownership by A.A.R. and the ongoing investigation of A.A.R and Alex Salvagno are often mentioned. Despite this, Alex Salvagno, representing AAR Environmental Services, is listed on the Environmental Business Association of New York State website as treasurer for the year 2001. Also as chair of their Technology Committee. EBA/NY is a state wide industry group. It's members include Consolidated Edison Company of New York and The Ford Motor Company. Investigations don't constitute a conviction, but neither is this a matter of someone burning leaves in a backyard trash barrel or tossing a few tires down a gully. The charges involve a complete and callous disregard for public safety plus a mega looting of public and private money. That the Environmental Business Association kept Alex Salvagno on as a board member in a position of fiscal responsibility can only mean one thing: they must really trust the guy.

ALL ROADS LEAD TO JERSEY

Back in 1997, when bogus Analytical Laboratories of Albany was riding high, Timothy Carroll bragged to a business publication that among ALA's 100 steady customers, the four largest were nuclear power plants. And that 500 other clients used ALA on an "as needed" basis. He also said ALA had opened an office in Hoboken, New Jersey. So as to "penetrate the New York City market".

MOTOR CITY SCHOOL DAZE

From Michigan a correspondent pointed out a February 12th story in The Detroit News. The headline reads "Contractors hire ousted Detroit principals". The story is by Jodi S. Cohen and tells of two Detroit public school executive directors, Mackie Bradford and Ellword Miller, who after being dismissed for misspending money in professional capacities, landed cushy jobs with the private companies overseeing the school district's $1.5 billion bond construction program. It's a well written story and a side bar time line gives good background. Stealing from kids in already rotten schools is despicable. In countries around the world corruption is increasingly being understood as a major factor in regional poverty and lack of development. One reason why it should rate higher as a "New Urban" issue.

DID YOU HEAR THE ONE

about Enron chairman Kenneth Lay urging Robert Rubin, when treasury secretary in the Clinton administration, to approve Houston, Texas as an "empowerment zone"? Enron to be empowered by tax breaks. Empowerment zones can be found in the most amazing places. Equally amazing is who gets empowered. Mostly the already empowerful.

TO BOLDLY GO--

On an even lighter note thanks to Renee in Albany, NY for her tip on a genre of Internet fiction called "Slash". Posted by women on Internet newsgroups, often as a collaborative effort, they spin all male x-rated scenarios about characters on classic television shows. So Captain Kirk says, Beam me up Scotty and

BOOM BOOM BOOM LETS GO BACK TO MY ROOM!

Like the ones in college dorms. From Oklahoma correspondent Michael Wright informs QT that what's thundering cross the plains is the artillery shell beat of boom cars from the college town where he resides. Which prompted Wright to create a website about the boom car blight. Noise is the number one quality of life complaint in nabes across the nation. "Quality of life" sounds fussy to some; evoking neighborhood Roderick Ushers cringing at the slightest sound. But the boomcar is not the tinny transistor of yesteryear. Boomcars are hated by a wide range of people. Urban residents particularly because narrow streets, close buildings and brick surfaces amplify the din. Wright reprints ads, ones for boom car sound systems. If you feel attacked when a noise tank passes by your perception is 100% correct. The ads push the pleasure of causing others physical pain with noise. Check the gleeful account by boom car aficionados of triggering car alarms with the boom car "Burp" effect. And if you think boom cars are exclusively a black thing these ads feature only white college boy types. Apparently Wright's site has angered boom boys with its accurate take on their pathology. They've responded with threats. Wright's site is direct, well organized and extremely astute. It addresses issues that intimidate people when challenging boom car noise pollution and makes excellent suggestions on how to take action. A link appears at bottom.

ON THE HORIZON

Yeeee-Hah! The Big HUD Roundup/Ready For Your Close-up? SpyCams On Your Corner/Plus More Hot Dishes From The Back Burner of Official Neglect

REMINDER

If it bugs you and/or makes you laugh send it along. QT will check it out and if it copies, run with it. And many thanks to the correspondent from a country in Eastern Europe who said "We could use something like this here".

LINKS

In relation to the above QT once again recommends Transparency International. Both the website and the daily headline service. TI provides an invaluable service by helping those concerned with local corruption issues put such practices in wider context. News stories and essays regarding corruption and possible solutions are gathered from a wide variety of sources, with much attention paid countries given short shrift by western media.

Transparency International, International HQ; U.S. chapter

Detroit News

Michael Wright/Boom Car Site

"Former employees testified to "rip and skip" activities...that included indoor `snow storms', a euphemism for the release of large amounts of visible asbestos into the air during the removal process."

United States v. Joseph Thorn, et al., Environmental Crimes Bulletin, United States Department of Justice, Spring 2001

"Later on we'll conspire, as we dream by the fire..."

Walking In a Winter Wonderland

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Crumpling HUD bux blowing in the wind.
updated 2/24/2002