Fabio Dioses guilty plea

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					                 United States Attorney's Office District of
                 Press Release


                 David B. Fein, United States Attorney for the District of Connecticut, announced
                 that FABIO DIOSES, 52, of Cheshire, pleaded guilty today before Chief United
                 States District Judge Alvin W. Thompson in Hartford to one count of knowing
                 discharge of a pollutant in violation of the Clean Water Act.

                 According to court documents and statements made in court, DIOSES was
                 employed by Phoenix Products Company as the superintendent of the company’s
                 facility located at 97 Napco Drive in Terryville. Phoenix Products provides
                 formulation, blending and packaging services for a variety of personal care and
                 swimming pool products. DIOSES’ responsibilities included overseeing the
                 manufacturing and packaging of certain products at the location, some of which
                 contained solvents and caustic formulations, inert materials, flammables,
                 corrosives, oxidizers and powders.

                 Pursuant to a statewide pretreatment program approved by the Environmental
                 Protection Agency (EPA) under the Clean Water Act, Phoenix Products and its
                 employees were prohibited from discharging any pollutants into the Plymouth
                 sewer system except in compliance with specific conditions and numeric
                 limitations set forth in the regulations and statutes administered by the
                 Connecticut Department of Environmental Protection (CT DEP). Phoenix
                 Products never applied for, nor received, a discharge permit from the State to
                 discharge pollutants into the Plymouth sewer system.

                 Phoenix Products used sulfuric acid as part of the manufacturing process for a
                 drain opener product, which generated highly acidic liquids, including
                 wastewaters that contained various pollutants, including zinc and copper. During
                 the course of fulfilling the terms of a contract with a customer for the drain
                 opener product, Phoenix Products accumulated at its 97 Napco Drive
                 manufacturing facility six 250 gallon totes (some partially full) containing off-
                 specification product. While the company had an extensive recycling program,
                 this off-specification product had no feasible commercial use, except for
                 reintroduction of approximately five gallons into each new batch of product. The
                 contents of the totes have been described as a black colored liquid, and
                 subsequent sampling and analyses revealed that the liquid had a pH of less than
                 1, which means that it was highly acidic. A label on the totes read, “Old [drain
                 opener product]. Out of spec.”

                 Beginning in September 2008 and continuing to October 1, 2008, DIOSES
                 directed other employees of Phoenix Products to periodically dump several
                 gallons of the off-specification drain opener product from the totes down certain
           drains at the 97 Napco Drive facility.

           On September 11, 2008, the Plymouth Water Pollution Control Authority
           identified a pH of approximately 2.0 in its influent. Over subsequent days, it
           monitored its influent, which measured a consistently low pH every day until
           October 1, 2008, when the acidic wastewater was traced along the sewer line to a
           manhole located adjacent to 97 Napco Drive. On that date, inspectors from the
           Plymouth Water Pollution Control Authority and the CT DEP observed a black-
           colored wastewater entering the manhole that had a pH of approximately .26,
           which is extremely acidic. The inspectors went to the Phoenix Products
           manufacturing facility and observed the 250 gallon totes filled to varying
           degrees with a similar black liquid. They also saw black staining in the
           maintenance sink in the men’s restroom.

           “The U.S. Attorney’s Office is steadfast in our commitment to work with the
           EPA and our state partners to prosecute companies and their employees who
           recklessly violate environmental permits,” U.S. Attorney Fein stated.

           Judge Thompson has scheduled sentencing for September 10, 2010, at which
           time DIOSES faces a maximum term of imprisonment of three years and a fine
           of up to $250,000.

           On January 4, 2010, Phoenix Products pleaded guilty to one count of violating
           the Clean Water Act. On February 1, the company was sentenced to three years
           of probation. In addition, the Court followed the sentencing recommendation
           agreed to by the parties in a plea agreement that was reached in the context of
           global discussions with Phoenix Products and the State of Connecticut regarding
           the company’s criminal and civil liability. The company was ordered to pay a
           $50,000 federal criminal fine, a $25,000 civil penalty to the State of Connecticut,
           and a payment of $75,000 into the DEP Supplemental Environmental Project
           (SEP) Account. Phoenix Products also must make an additional SEP payment of
           up to $100,000 if the business is sold.

           Phoenix Products also has reimbursed the Town of Plymouth for the costs
           incurred to neutralize the acidic conditions.

           This case was investigated by the Criminal Investigation Division of the
           Environmental Protection Agency. The case is being prosecuted by Senior
           Litigation Counsel Christopher W. Schmeisser and Special Assistant U.S.
           Attorney Andrew E. Lauterback.

           Tom Carson
           (203) 821-3722

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