Contractor Sentenced for Fraud in Hospital Asbestos Cleanup
Legislation & Litigation
Written by Travis Rodgers | Edited by Amy Edel
A federal judge sentenced Carl Fioravanti, president of Illinois environmental services company Alliance Environmental Control, Inc., to 6 years and 8 months in prison. Fioravanti pleaded guilty to wire fraud and a tax charge earlier this year after leaving asbestos at a former hospital demolition site and falsely reporting that crews had removed it.
Alliance received nearly $1.8 million to remove asbestos from the abandoned medical campus in Waukegan before demolition began in 2023. The property included the former St. Therese Medical Center, later known as Vista Medical Center West and then part of the Lake Behavioral Hospital campus. Court records describe extensive asbestos in the older buildings, including spray-on fireproofing, pipe insulation, floor tile and mastic.
Federal prosecutors say Fioravanti certified the work as complete in September 2023 despite knowing asbestos remained in parts of the Old Main Hospital. He also submitted air-sampling reports claiming a third party had tested the site and found asbestos levels below regulatory limits, but prosecutors say no third party performed the testing.
Demolition spread the remaining asbestos through the debris, releasing asbestos into the air and substantially increasing cleanup costs. The property owner has spent more than $26 million on remediation.
OSHA Found Asbestos Hazards at Demolition Site
OSHA opened an inspection in November 2023 after investigators observed demolition workers at the 8-story former hospital working without protective equipment near debris and steel beams. The agency later found asbestos in insulation and fireproofing materials at the site.
Some of the fireproofing contained up to 15% chrysotile asbestos, the most commonly used type of asbestos and the type linked to most mesothelioma cases in the U.S. Investigators also found that the demolition contractor had a 2019 building survey documenting extensive asbestos use on structural beams but hadn’t warned employees or other contractors about the hazard.
OSHA cited demolition subcontractor K.L.F. Enterprises for 36 safety and health violations and proposed $392,002 in penalties. The agency also cited the general contractor, building owner and Alliance for violations related to asbestos safety requirements at the property.
Asbestos Contamination Required Extensive Cleanup
The contamination required extensive remediation across the former hospital property. Court records state that cleanup generated more than 70,000 tons of asbestos waste. Crews also used millions of gallons of water to control dust and removed a layer of soil across the 2.5-acre property.
Prosecutors argued that the case went beyond financial fraud because demolition disturbed friable asbestos, which can crumble or turn to powder and release fibers more easily. They said this created possible asbestos exposure risks for workers, hospital patients and nearby residents.
Prosecutors also said some asbestos likely traveled beyond the property line. However, investigators couldn’t determine how much material traveled or identify any specific person who was directly exposed.
Long-Term Health Risks of Asbestos Exposure
Federal prosecutors said workers, hospital patients and nearby residents faced possible asbestos exposure when demolition disturbed asbestos at the former hospital. Microscopic asbestos fibers can become airborne and enter the lungs when inhaled.
Asbestos exposure can cause serious diseases, including mesothelioma and lung cancer. These diseases can take years or even decades to develop after exposure, a delay known as the latency period. Fibers that reach the lungs can remain there for years, causing inflammation, scarring and cancer.
U.S. Attorney Andrew Boutros said the case shows why falsifying environmental and safety records can have consequences beyond financial fraud. “Environmental fraud causes substantial damage to the health, safety, and economic security of our communities,” Boutros said.
