Three companies have been cited by federal officials after subcontractors in November 2023 began demolishing a former hospital, located at 2615 Washington Street in Waukegan, without following proper protocol for removing asbestos from the building, resulting in workers and others being exposed to the harmful material. | Photo Submitted to Lake and McHenry County Scanner
Federal criminal charges have been filed against the owner of an asbestos abatement company alleging he committed fraud during the demolition of a former Waukegan hospital by not safely removing asbestos as required by law.
According to the 24-count indictment filed by the U.S. Attorney’s Office in U.S. District Court in Chicago in October, Carl Fioravanti served as president of Alliance Environmental Control, Inc., a Lansing, Ill.-based company that performs asbestos testing and removal services.
The company was hired in late 2022 to fully abate materials containing asbestos from Lakes Behavioral Hospital, the complaint says.
In exchange for demolition and asbestos abatement performed at the hospital, Alliance Environmental was to be paid $1,780,770, the complaint reads.
However, the complaint states that the asbestos work was not handled correctly and that Fioravanti made false statements regarding the work being performed.
In addition, Fioravanti lied to investigators in an attempt to cover up his actions, the complaint said.
Three companies have been cited by federal officials after subcontractors in November 2023 began demolishing a former hospital, located at 2615 Washington Street in Waukegan, without following proper protocol for removing asbestos from the building, resulting in workers and others being exposed to the harmful material. | Photo Submitted to Lake and McHenry County Scanner
The complaint says that Alliance employees began stripping asbestos from the facility in 2023, before receiving permits from the city of Waukegan and not submitting notices to the Illinois Environmental Protection Agency.
The complaint also claims Fioravanti lied to IEPA employees that workers at the site were engaged only in demolition site preparation work when, in reality, demolition had already begun.
The complaint alleges that, at Fioravanti’s direction, Alliance employees began to dispose of accumulated bags of asbestos-containing waste material from the hospital site by placing those bags in dumpsters for disposal at a landfill.
Fioravanti and his company are charged with 24 total counts of fraud and other violations involving the incident.
This is the latest news following a federal investigation that found three dozen violations were committed in the demolition of the former hospital in Waukegan, resulting in “serious dangers” of asbestos.
The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) announced previously that K.L.F. Enterprises, a Chicago demolition subcontractor, was cited for 36 safety and health violations.
OSHA said that K.L.F. Enterprises knew it was exposing its employees and others to the serious dangers of asbestos during the demolition of the former Lake Behavioral Hospital.
The building was home to Vista Medical Center West before it was bought by Lake Behavioral Hospital. Prior to that, the hospital was known as St. Therese Medical Center.
Investigators opened a complaint inspection in November 2023 after they observed K.L.F. employees not wearing protective equipment amid piles of debris and steel I-beams during the structural demolition of the eight-story hospital.
Three companies have been cited by federal officials after subcontractors in November 2023 began demolishing a former hospital, located at 2615 Washington Street in Waukegan, without following proper protocol for removing asbestos from the building, resulting in workers and others being exposed to the harmful material. | Photo Submitted to Lake and McHenry County Scanner
OSHA determined that K.L.F. continued demolition activities — disturbing and removing asbestos used to fireproof the building’s interior — despite allegedly recognizing the debris piles outside were likely asbestos-laden.
The company did not stop work or require employees to take appropriate precautions and use established control measures to protect themselves from the long-recognized hazard, OSHA said.
K.L.F. Enterprises is a family-owned business offering demolition and excavation services for residential, commercial, industrial, and municipal clients in the Chicagoland area.
The company, which was created in 2000, has locations in Chicago and Oak Forest.
“K.L.F. Enterprises’ decision not to stop work immediately or ensure appropriate control measures were followed when asbestos was clearly visible exposed these employees to a highly carcinogenic material with the potential for permanent, negative long-term health outcomes,” Chicago North OSHA Area Director Sukhvir Kaur said.
“We will hold companies accountable when they fail in their duty to protect the safety and health of their employees,” Kaur said.
Three companies have been cited by federal officials after subcontractors in November 2023 began demolishing a former hospital, located at 2615 Washington Street in Waukegan, without following proper protocol for removing asbestos from the building, resulting in workers and others being exposed to the harmful material. | Photo Submitted to Lake and McHenry County Scanner
Investigators discovered the company possessed a 2019 building survey that “clearly identified” the extensive use of asbestos to fireproof the structural beams but did not inform their employees of the hazards.
Investigators later determined the building’s insulation and fireproofing materials contained up to 15% chrysotile asbestos and K.L.F. had also failed to notify the site’s general contractor, Reed Illinois Construction in Chicago, and the building’s owner, V Covington LLC of Waukegan, of the discovery of asbestos at the site during demolition work, OSHA said.
K.L.F. Enterprises received citations for lack of compliance with OSHA’s asbestos regulations, including a willful violation for failing to notify employees and other contractors of material containing asbestos, as well as violations related to the company’s alleged failures to require employees to wear protective equipment.
The agency also cited the company for failure to train employees to recognize and avoid unsafe conditions, provide medical surveillance of employees for asbestos, silica and lead exposures; and for other alleged deficiencies in how K.L.F. handled asbestos, silica and lead materials and waste at the site.
The company was also cited for allegedly exposing employees to safety hazards by not providing adequate fall protection around floor openings.
OSHA in total assessed K.L.F. with $392,002 in proposed penalties.
OSHA also cited Reed Illinois Construction for not ensuring its subcontractor, K.L.F. Enterprises, met federal safety and health standards for asbestos and for allegedly failing to inspect the site frequently for safety hazards.
OSHA has assessed the general contractor with $32,262 in proposed penalties.
A serious violation was issued to V Covington LLC with a proposed $16,131 penalty for the owner’s alleged failure to ensure K.L.F. Enterprises and Alliance Environmental Control Inc., complied with the federal asbestos standard.
In that initial complaint, Alliance Environmental Control also received citations for allegedly creating asbestos hazards by not removing asbestos, including the fireproofing insulation.