Lawrence Aviation CEO ordered to pay millions by federal court

Lawrence Aviation CEO ordered to pay millions by federal court

Gerald Cohen during a 2010 interview with TBR News Media. Image from video by TBR News Media

The former CEO of Lawrence Aviation in Port Jefferson, Gerald Cohen, has been ordered to pay $48 million in cleanup costs for the toxic underground plume caused by materials leached into the ground from the now-defunct airplane parts manufacturer.

The U.S. Attorney’s office announced the charges April 15 after a district court judge in Central Islip ruled Lawrence Aviation Industries, Inc, a former defense contractor that was based on Sheep Pasture Road, and its longtime owner and CEO, Gerald Cohen, were liable for environmental cleanup costs.

“This case and the significant monetary penalties imposed by the court should serve as a warning to would-be polluters, including individuals, that this office and the [U.S. Environmental Protection Agency] will use every tool at their disposal to protect Long Island’s groundwater and to ensure that those responsible for contamination will foot the bill for cleanup costs,” said Richard Donoghue, the U.S. Attorney for the Eastern District of New York.

The U.S. Attorney’s office detailed Cohen’s wrongdoing based on the court’s 37-page memorandum. In the early 1980s, after the Suffolk County Department of Health issued a series of recommendations for LAI to come into compliance with various pollution control laws, LAI used a front-end loader to crush 55-gallon drums containing hazardous substances, among more than 1,600 of such drums identified on the property, resulting in a massive discharge of waste directly onto the ground. Samples taken from those drums revealed impermissibly high levels of trichloroethylene, among other pollutants. Nearly two decades later, in 1999, testing performed by the New York State Department of Environmental Conservation revealed contamination of groundwater and surface water at the site.

“This judgment provides for the reimbursement of money spent on cleanup work and imposes penalties that act as a deterrent.”

— Pete Lopez

In a statement to the U.S. Attorney’s office, the regional EPA administrator said he was pleased with the court’s decision.

“This judgment provides for the reimbursement of money spent on cleanup work and imposes penalties that act as a deterrent,” said EPA regional administrator Pete Lopez. “Our active engagement and work at this site will continue over the long term.”

Various creditors have asserted claims against LAI and Cohen properties based on their respective liens. Those claims remain pending before the court. The 126-acre property was named a Superfund site in 2000 and was expected to take 20 years to complete the cleanup.

The EPA’s cleanup of the site, now into its 19th year, has included a remedial investigation into the nature and scope of the contamination, various hazardous waste removal and stabilization activities, and the implementation and maintenance of two groundwater treatment systems designed to capture and treat contaminated groundwater, according to the U.S. Attorney’s office. The EPA’s activities at the LAI site have resulted in a decrease in the size of the groundwater TCE plume and the removal of more than 18,000 tons of soil contaminated with polychlorinated biphenyls, among other hazardous substances, including asbestos-containing materials.

In 2008, Cohen and LAI pleaded guilty to violating the Resource Conservation and Recovery Act, for storing hazardous wastes at the LAI facility without a permit issued by the EPA or New York State. Cohen was sentenced to a term of imprisonment of one year and a day, and supervised release of 36 months. He and LAI were ordered to pay restitution to the EPA of $105,816.