Seven defendants have pleaded not guilty to criminal charges involving a $1- million overpayment by the state Department of Transportation to a South El Monte excavation firm on a contract to dump hazardous waste at the BKK Corp. landfill in West Covina.
Caltrans hired Andrew Papac & Sons in 1982 to excavate the Willco landfill in Lynwood and agreed to pay the firm $3.9 million to remove non-hazardous waste and $24 per ton plus 15% to dump hazardous waste at BKK.
But the firm and a business associate reached an agreement with BKK to dispose of the hazardous waste for $19 per ton, according to the county district attorney's office, and allegedly withheld the terms of that agreement from Caltrans.
Andrew Papac, his son Andrew G. Papac, the family's excavation firm and a Papac business associate, William Dunlap of Hollywood, have each been charged with two counts of grand theft and conspiracy to commit grand theft.
Jack Thompson, manager of the BKK landfill, and Charles Virden, former controller of BKK, have each been charged with two counts of conspiracy to commit grand theft. Dunlap and his wife, Patricia Ann Dunlap, have also been charged with failure to file state income tax returns for 1983 and 1984.
A preliminary hearing is scheduled Sept. 14 in Los Angeles Municipal Court.