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For Release: Friday, October 5, 2007

DEC and Suffolk DA Announce Results of Aquebogue Hazardous Waste Investigation

Firm Agrees to Pay $1.5 Million in Penalties and Clean Up Illegal Dumping Contamination

An investigation into illegal dumping of hazardous waste at a site in the Town of Riverhead has resulted in a criminal conviction and $1.575 million in penalties, New York State Department of Environmental Conservation (DEC) Commissioner Pete Grannis announced today. The investigation was launched by DEC and supported by the Suffolk County District Attorney's Office.

Altaire Pharmaceuticals, Inc., signed a consent order with DEC agreeing to a $200,000 penalty and a $175,000 suspended penalty, pending cleanup of its contaminated site in Aquebogue. In addition, Sawaya Holding Corp., which is tied to Altaire Pharmaceuticals and other related companies, pleaded guilty to one count of Endangering the Public Health, Safety and the Environment in the 3rd degree, an E felony. Sawaya Holding Corp. has been ordered to pay an asset forfeiture of $1.2 million and was sentenced to three year a conditional discharge.

"This success of this investigation is a result of hard work and cooperation between DEC's law enforcement staff and the Office of the Suffolk County District Attorney," said Regional Director Peter A. Scully. "Forcing violators to pay a stiff price and to clean up the pollution they cause serves as a strong deterrent to others who might consider taking unlawful actions that threaten the sole source aquifer that serves as Long Island's drinking water supply."

"Because someone took the initiative and called the DEC to alert the agency about witnessing the dumping of waste into a floor drain, an investigation began. Without this information, it is very likely that this crime would have gone undetected and the health of families living nearby jeopardized," said Suffolk County District Attorney Thomas Spota. "It is a valuable lesson the impact one person can have to protect the sole source of our drinking water."

The case began in December of 2004 when DEC's Bureau of Environmental Crimes Investigations (BECI) received a phone call from a witness claiming that the Altaire Pharmaceuticals, Inc. had dumped the contents of a partially filled 5,000-gallon waste tank into a floor drain at their facility located at 311 West Lane, Aquebogue. In response, BECI began an investigation and subsequently located a second witness who had observed other incidents of mishandling of hazardous waste on the 150,000-square-foot facility under the direction of company president Assad Sawaya.

In April 2005, BECI executed a search warrant on the site in coordination with personnel from the Suffolk County District Attorney's Office (SCDA), Suffolk County Department of Health Services (SCDHS), and the Suffolk County Police Department Emergency Service Unit. During the course of the search, business records and samples of the sewage system were seized. Altaire manufactured hair products, eye drops and other consumer goods.

The seized samples showed contamination of several areas of the facility including floor drains and septic tanks. Several contaminants were found including selenium, benzene, methylene chloride, acetone, and D001 ignitable waste (waste that is capable of igniting at a temperature of less than 140 degrees Fahrenheit). Test results to date have not shown an impact to public supply wells.

Following analysis of the seized evidence, the district attorney's Environmental Crimes Unit began prosecution of the leaseholder, Sawaya Holding Corp. This resulted in a guilty plea to one count of 71-2712(4); Endangering the Public Health, Safety and the Environment in the 3rd degree, an E felony. The plea agreement calls for Sawaya Holding to pay an asset forfeiture in the amount of $1.2 million.

The consent order dictates Altaire Pharmaceuticals responsibility to abide by all state and local regulations. In addition, Altaire is required to submit a work plan for remediation of the contaminated site within 20 days and begin appropriate remediation of the site within 65 days of the signed consent order.

For more information on Environmental Conservation Laws, please visit the DEC's website at http://www.dec.ny.gov . To report an environmental crime, please contact the DEC's 24 hour telephone hotline at 1-800-TIPP DEC or 1-800-847-7332.

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