New Charges Filed in Landfill Scandal

San Bernardino County prosecutors have refiled stock fraud charges against Waste Management Inc. and five other remaining defendants in the Rail Cycle business corruption case, saying they have new evidence. Superior Court Judge Joseph E. Johnston had tossed out all nine criminal securities fraud counts in the case a year ago for lack of evidence. Grover Merritt, lead prosecutor in the case, would not discuss the new evidence, but said it stemmed in part from documents the 4th District Court of Appeal recently ordered unsealed. Waste Management claimed unsuccessfully that the documents were protected by attorney-client privilege. The case stems from a failed attempt by Waste Management to build the world’s largest landfill in the Mojave Desert. The trash company is accused of conducting a campaign of dirty tricks aimed at destroying the landfill project’s chief opponent, Cadiz Inc., a Santa Monica-based agribusiness that owns large parcels near the proposed dump site. The new complaint contains three felony counts--securities fraud, attempted securities fraud and conspiracy to commit securities fraud--against Waste Management and three subsidiaries as well as former Waste Management executives Stuart Clark and Glen Odell. All were previously indicted in October 1998. John Newell, an attorney for Waste Management, condemned the new filing and predicted, “These charges will be thrown out again.”