On Thursday, a contractor from the suburbs received a sentence exceeding six and a half years in federal prison for leaving significant amounts of cancer-causing asbestos during a demolition project in Waukegan. Carl Fioravanti, 58, from Highland, Indiana, admitted to wire fraud and tax fraud in June, as he accumulated over $1.8 million despite knowing the Lake Behavioral Hospital site was not cleared of asbestos. He then falsified documents and lied to authorities to conceal his actions.
Photos by the Occupational Safety and Health Administration showed workers without protective gear during the demolition at Lake Behavioral Hospital. The site, owned by Fioravanti, was meant to be asbestos-free. These actions led the general contractor to incur over $26 million in cleanup and legal expenses after discovering the asbestos mixed with other debris.
Fioravanti, the former president of Alliance Environmental Solutions, also misled about asbestos removal in another project at the old Harvey Hotel. He avoided over $2.7 million in taxes through fraudulent filings for eight years. U.S. District Judge Franklin Valderrama sentenced Fioravanti to 80 months, citing the contractor’s greed in disregard of health risks.
The judge noted the danger posed to workers and their families and the potential impact on the local community, due to asbestos exposure’s long-term health effects. Despite unknown consequences, Judge Valderrama emphasized the crime’s severity.
Assistant U.S. Attorney Timothy Chapman pointed out Fioravanti’s awareness of asbestos dangers, yet recklessly proceeding with actions that could trigger significant environmental harm. Fioravanti’s attorneys argued for leniency, highlighting his lack of criminal history and intention.
Fioravanti expressed remorse in court, admitting to wrong choices and document alterations. He struggled to explain why he reached this point.
The contractor also admitted to misleading regulators about asbestos removal in a 2018 project at the Chicago Park Hotel in Harvey, contracted by the Cook County Land Bank Authority. Both projects involved the same main demolition contractor, KLF Enterprises, which utilized Fioravanti for specialized removal. KLF was owned by James Bracken, who faced FBI investigation but remains uncharged.
Fioravanti instructed workers to improperly dispose of asbestos debris, subsequently hiding evidence during federal investigation probes. After court proceedings, Fioravanti’s attorney clarified no plea deal with federal investigators to cooperate in other investigations.