Company Is Fined $75,000 for Dumping Toxics in Bay

A federal judge Friday ordered a company that removes paint from Navy ships to pay a $75,000 fine for dumping toxic wastes into San Diego Bay.

Under the sentencing agreement, U. S. District Judge Judith N. Keep ruled that the company, Zarcon Corp., must pay $25,000 within 120 days for the first of three misdemeanor criminal counts to which it pleaded guilty in November. But the judge agreed to dismiss the remaining $50,000 fine in two years if Zarcon complies with the court’s request to conduct monthly inspections and disposes illegally of no more toxic wastes during that period.

Attorney Raymond J. Coughlan, who represented Zarcon, said the sentencing “was fair considering that the government urged the maximum penalty of $75,000 with no chance of partial dismissal.”

“The judge took a look and, after reviewing the case, indicated to them, that, ‘if you keep your noses clean . . . you won’t have to pay’ ” the added $50,000, Coughlan said.

Prosecutor Calls It Fair

Assistant U. S. Atty. Melanie K. Pierson also called the ruling fair, saying the judge’s order allows the company to mend its ways.

“I’d rather see them use the $50,000 for a pump that works properly if they don’t have to pay the remainder of the fine,” she said.

Coughlan said that Zarcon, which employs up to 40 workers when under contract to strip paint from Navy ships, is already holding weekly meetings and issuing bulletins to its employees on the proper methods of waste disposal.

Zarcon and its two top executives were charged with the three counts last May for the dumping of toxic paint grit. Lead, copper, arsenic and mercury were among the toxins in the paint residue Zarcon was charged with dumping on three separate occasions in late 1987 and early 1988.

Admitted Responsibility

Zarcon President James D. Kuvelas conceded last November that he bore responsibility for the conduct of negligent employees who allowed the hazardous pollutants to flow into the bay. His brother, Jack Kuvelas, Zarcon’s secretary treasurer, was also charged, but did not admit any guilt.

Under a deferred prosecution agreement in November, charges against the pair will be dismissed provided they are not charged with any other violations before November, 1990.

The dumping constituted violations of the Clean Water Act, which sets the standards for the nation’s waterways. The indictment of Zarcon came after an investigation by the Hazardous Waste Task Force, an intergovernmental body formed to investigate and beef up local enforcement of laws made to protect the environment.

Task force officials discovered that Zarcon employees illegally discharged paint grit through a pump into the bay without a filter, used an air hose to blast the grit off a pier and used a pump with a filter that failed to remove the toxic residue.

The three instances were documented after an investigation conducted with the aid of the Naval Investigative Services. Task force officials took surveillance photos, documenting the illegal activity on Nov. 19, 1987, at Pier No. 1 at the foot of 8th Street, and on March 3 and March 9, 1988, at the 32nd Street Naval Station.