Co-Gen cleared of fraud
A criminal investigation by the Montana Department of Justice found the former owner of the Thompson River Co-Gen facility provided no false information to the Montana Department of Environmental Quality in order to reduce fines for repeatedly violating air quality standards.
A letter from Montana Attorney General Mike McGrath sent to Gov. Brian Schweitzer May 30 stated the Thompson Falls Co-Gen facility and its former owner Barry Bates not at fault for alleged financial fraud.
The Attorney General has been investigating the company since April at the request of the governor, after he received a letter from the Clark Fork Coalition, a local community group. The CFC sent a letter to the governor two months ago to start the investigation to see if the TRC had lied about their inability to pay $1.8 million dollars in air quality fines. The fines had been reduced to $200,000 because of the TRC’s lack of funds.
While the results of the investigation have ended the dispute about the power company, the controversy is far from over. Morlene Plouzek, President of Community Awareness Network and member of the CFC is still unsatisfied with the results and still believes that the company is at fault.
“It just smells to high heaven,” Plouzek said. “This man (Barry Bates) has such a record of dishonesty and I think the attorney general is playing along with the whole thing.”
Plouzek pointed to the many environmental fines and permit adjustments the TRC has had throughout its operation in Thompson Falls and Bates’ past history of fraud for tax evasion and for fraud as a stockbroker.
According to the Montana Environmental Information Center newsletter, a federal district court in Colorado and the U.S. Securities and Exchange Commission found Bates guilty of fraud in 1999. The Newsletter also reported that Bates was found guilty of tax evasion in April 2007 and was sentenced to three months of house arrest with five years probation and $300,000 in fines.
The MEIC Newsletter went on to report that the DEQ has allowed the company changes in permits numerous times, despite earlier fines of $106,400 for illegal construction.
“The DEQ have sided with the plant since the beginning against the will of community,” Plouzek said.
Richard Opper, the DEQ director said that he was “Pleased but not surprised with the results.”
Lisa Peterson, the DEQ’s public affairs coordinator, said, “[Opper] was pleased that the TRC had not provided misinformation and that the attorney generals results came up with the same information they’re initial report showed.”
Karen Knudsen, the executive director for the CFC, glad that the investigation had been done but was still unhappy with the DEQ’s reduction of the $1.8 million in fines. “It’s a disservice to tax payers to knock off so much.” Knudsen said and wondered whether or not state legislators are as efficient as they needed to be.
The TRC facility is now owned by the Wayzata Investment Partners, a multi-billion dollar company, Bates sold the company for an undisclosed amount just two weeks after his fines were reduced to $200,000 by the DEQ.
Plouzek said she didn’t trust the new owners and wondered whether or not they would be a benefit to the community or not. “This history that Mr. Bates has left us has been a big botch for us, it’s been a real muddle,” Plouzek said.