EXECUTIVES AND GASOLINE BLENDING COMPANY INDICTED

[GROUP PRESS 202-260-4355]

!/EXECUTIVES AND GASOLINE BLENDING COMPANY INDICTED/SCROLL
FOR RELEASE: THURSDAY, JANUARY 25, 2001

EXECUTIVES AND GASOLINE BLENDING COMPANY INDICTED

On January 18, four defendants were indicted on various federal charges that arose out of an alleged scheme to
falsify test results on reformulated gasoline at Caleb Brett's Linden, N.J. laboratory. The defendants are:
Blending, Marketing and Service Inc., (BMS) of Houston, Texas; Waldo Schroeder, also of Houston and President of
BMS; Mark Schroeder of The Woodlands, Texas, Operations Manager of BMS; and Richard Kaminski of Houston, former
President of Caleb Brett U.S.A. The indictment alleges that the defendants were involved in a scheme to change
data on tests of reformulated gasoline (RFG) samples from 1995 through early 1997. The data changes made it appear
as if the gasoline met EPA standards for cleaner burning fuel, when it did not. Approximately 200-300 million
gallons of the substandard gasoline were distributed in New York, New Jersey and Connecticut. Cleaner burning RFG
is required by EPA in some states to reduce air pollutants that can cause a variety of respiratory diseases.
Kaminski faces two conspiracy charges and one count of making false statements. Mark Schroeder is charged with
conspiracy and eight counts of wire fraud. Waldo Schroeder faces one count of conspiracy, and BMS faces one count
of conspiracy and eight counts of wire fraud. If convicted, the three defendants could faces up to five years in
prison and/or a $250,000 fine on each count on which he was convicted. BMS faces up to $500,000 in fines/and or up
to five years probation on each count, if convicted. The case was investigated by EPA's Criminal Investigation
Division and the U.S. Postal Inspection Service. The case is being prosecuted by the U.S. Attorney's Office for
the District of New Jersey in Newark.

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