Major Potato Grower Indicted : Agriculture: Nation’s second-largest producer of the crop is accused of using non-disinfected waste water to irrigate fields. Health hazards are unknown.

A federal grand jury indicted the nation’s second-largest potato grower Thursday, charging that Agri-Empire Corp. used non-disinfected waste water to grow its potatoes before shipping millions of them across the nation to supermarkets and potato brokers.

The company, one of the largest agricultural businesses in California, was not charged with endangering human health, and public health experts said it was impossible to say whether a health hazard would have been created by the practice alleged in the indictment. Some of the potatoes were also sold by brokers to fast-food restaurants.

Dave Spath, chief of technical programs for the state’s Office of Drinking Water at the Health Services Department, said that “theoretically, it could create a problem,” especially for workers who handled the potatoes.

Although it is partially treated, non-disinfected waste water can carry viruses, parasites and bacteria, Spath said, all of which probably would be killed by cooking the potatoes. But handling them could be risky, he added. Non-disinfected waste water may legally be used to water crops for seed or animal consumption, but may not be used on crops meant for humans, said Dick Heil, a spokesman for the Eastern Municipal Water District, in San Jacinto.

Thomas Parker, assistant special agent in charge of the FBI’s Los Angeles field division, said health risks appeared to be minimal but added that the company may have needlessly put the public at risk. “If the charges alleged in the indictment are true, they placed greed above concerns about human safety,” Parker said.

A lawyer for the company said he was disappointed that the federal government chose to pursue indictments against the company and its president. “We believe the indictment is unwarranted and fully expect to be vindicated at trial,” said Thomas E. Holliday, who is representing Agri-Empire.

The 33-count indictment caps an intensely public investigation that surfaced nearly a year ago when FBI agents and California Highway Patrol officers led raids on the company’s San Jacinto headquarters and commenced a search of one of its feedlots. Authorities acted on tips from informants that the company and its officers--including its president, drag-race champion James Larry Minor--had buried thousands of unwashed pesticide containers on land used for cattle.

The initial search was called off after three weeks of digging in the blazing sun yielded a paltry handful of containers. An outraged company spokesman publicly complained about the search, and residents of the farming communities around San Jacinto rallied around Agri-Empire and its executives. Even drag-racing aficionados joined the harangue against the government.

All of that left the law enforcement agencies badly embarrassed, but agents and prosecutors did not halt their investigation. They continued to delve into the company’s affairs and uncovered what they say is evidence that waste water was used in its potato fields.

The indictment charges the company and Minor with conspiracy, mail fraud, and the illegal transportation, storage and disposal of hazardous waste. If convicted, Minor could face up to 159 years in prison and a fine of up to $250,000, according to the U.S. attorney’s office in Los Angeles. The corporation faces a maximum fine of $500,000 on each count, the office added.

“The allegations are very serious,” said Assistant U.S. Atty. Adam Schiff. The allegations in the indictment all reflect “a common theme--probable cause that Minor and Agri-Empire disregarded health and welfare laws to increase their profits.”

Minor’s attorney was unavailable for comment.

According to the indictment, Minor and Agri-Empire bought waste water--also known as reclaimed water--from the water district or other farmers who received water from the district. After promising that the water would only be used for growing crops for seed or animals, they would then divert it to other fields.

“To increase profits, defendants Larry Minor and Agri-Empire would use the waste water to irrigate many of the potato crops that it sold for human consumption since the price of non-disinfected waste water was many times less than that for domestic water,” the indictment alleges. Some of the crops were given only the non-disinfected waste water, while others received a mixture of waste water and well water, prosecutors allege.

They also charge that Minor and other, unnamed company officials instructed employees to “keep silent or lie about the use of the waste water.”

In addition to the charges related to the alleged use of waste water, the indictment accuses the company and Minor of secretly burying, storing and transporting hazardous wastes. According to the indictment, employees acting under Minor’s orders dumped and buried hundreds of un-rinsed and improperly rinsed pesticide containers on property owned by the company.

Employees also were allegedly directed to bury several 55-gallon drums of formaldehyde and to hide a container of DDT, a banned pesticide, in a shed.

Minor was not arrested Wednesday. He is scheduled to be arraigned June 21.