Information Notice No. 89-02:Criminal Prosecution of Licensee's Former President for Intentional Safety Violations
UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS
WASHINGTON, D.C. 20555
January 9, 1989
Information Notice No. 89-02: CRIMINAL PROSECUTION OF LICENSEE'S FORMER
PRESIDENT FOR INTENTIONAL SAFETY VIOLATIONS
Addressees:
All holders of a U.S. Nuclear Regulatory Commission specific license.
Purpose:
This information notice is issued to remind licensees and their employees of
the penalties that could result from the intentional violation of regulatory
requirements. In particular, both the licensee and individual employees could
be subject to criminal prosecution by the U.S. Department of Justice as well
as civil enforcement action by the NRC, if they intentionally violate
regulatory requirements or commit any other type of regulatory-related
wrongdoing. The particular case described below involves wrongdoing by former
licensee employees, including the former President, at a large irradiator.
However, the principles involved apply to all NRC licensees. It is expected
that licensees will review this information notice, distribute it to
management and staff involved with licensed activities, including responsible
radiation safety staff, and consider actions, as appropriate, to avoid similar
problems. This information notice does not constitute any new NRC
requirements, and no written response is required.
Description of Circumstances:
Radiation Technology, Inc. (RTI) operates four irradiators, two in New Jersey,
one in North Carolina and one in Arkansas. Irradiators use highly radioactive
material to sterilize a variety of products, including medical supplies,
spices and certain food products. During a 1984 inspection at RTI's Rockaway,
NJ fa-cility, an NRC inspector determined that safety interlocks, designed to
prevent entry to the irradiator cell while the radioactive material was
unshielded, had been deliberately bypassed at the facility. This action was
apparently taken with the knowledge and approval of the former President, who
was also the Radiation Safety Officer. A subsequent inspection at the
Rockaway facility in 1986 revealed additional examples of operation of the
facility without the required safety interlocks in place.
In addition, NRC investigators identified examples of the President and other
company officials lying to NRC inspectors and investigators, as well as
efforts to prevent NRC from learning about the violations of regulatory
requirements; these efforts included holding a meeting to discuss what NRC
investigators would be told and then creating false documents.
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As a result of these findings, NRC suspended the license in June 1986; in
addition, NRC's investigation findings were referred to the United States
Department of Justice for prosecutorial review. In August 1986, a condition
for removal of the suspension and issuance of a renewed license by the NRC
was that certain RTI individuals would be prohibited from being involved in
licensed activities.
On March 18, 1988, the U.S. Grand Jury for the District of New Jersey returned
a multiple count indictment against RTI, the former President, and two former
Operations Managers. Seven counts were directed to the former President.
RTI pleaded guilty to two counts. The former Operations Managers pleaded
guilty to one count each. The former President pleaded not guilty on all
counts. On June 28, 1988, a jury in the U.S. District Court of New Jersey
found him guilty on six out of seven criminal counts against Title 18 and
Title 42 of the U.S. Code, including conspiracy to defraud the United States,
lying to NRC investigators, and intentionally violating the Atomic Energy
Act. As a result, on October 11, 1988, the former President was sentenced
to serve two concurrent sentences of two years, and was assessed a $50,000
fine. Radiation Technology, Inc. was fined a total of $100,000. The two
former Operations Managers were each sentenced to three years probation and
assessed fines of $10,000 and $2,500, respectively.
Discussion:
Licensees are responsible for ensuring the safe performance of licensed activi-
ties in accordance with NRC regulations and the requirements of their licenses,
and for providing complete and accurate information to NRC, relative to all
licensed activities. In cases that involve the possession and use of large
quantities of radioactivity, full compliance is critical, because the sources
of radiation involved are capable of delivering life-threatening exposures.
The operation of a large irradiator without safety interlocks, designed to
prevent entry into the cell while the sources are exposed, compromises the
safety of the operators and other employees. In addition, it is important
to note that NRC will not accept administrative procedures as a substitute
for the required engineered safety interlocks for irradiator operations.
The NRC expects licensee employees to be completely candid and cooperative
with NRC personnel during the licensing and inspection process. The regu-
latory process functions on the premise that licensees will, at all times,
provide accurate information to NRC in a timely manner. Violations of NRC
requirements caused by intentional acts or efforts to impede the regulatory
process may subject wrongdoers to criminal prosecution. As evidenced by the
case described in this information notice, criminal sanctions may include a
fine and/or imprisonment.
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No written response is required by this information notice. If you have any
questions about this matter, please call the technical contact listed below
or the appropriate NRC regional office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety, NMSS
Technical Contact: Jack R. Metzger, NMSS
(301) 492-3424
Attachment: List of Recently Issued NRC Information Notices
. Attachment
IN 89-02
January 9, 1989
Page 1 of 1
LIST OF RECENTLY ISSUED
NRC INFORMATION NOTICES
_____________________________________________________________________________
Information Date of
Notice No._____Subject_______________________Issuance_______Issued to________
88-23, Potential for Gas Binding 1/5/89 All holders of OLs
Supp. 1 of High-Pressure Safety or CPs for PWRs.
Injection Pumps During a
Loss-of-Coolant Accident
89-01 Valve Body Erosion 1/4/89 All holders of OLs
or CPs for nuclear
power reactors.
88-46, Licensee Report of Defective 12/30/88 All holders of OLs
Supp. 2 Refurbished Circuit Breakers or CPs for nuclear
power reactors.
88-101 Shipment of Contaminated 12/28/88 All holders of OLs
Equipment between Nuclear or CPs for nuclear
Power Stations power reactors.
88-100 Memorandum of Understanding 12/23/88 All major nuclear
between NRC and OSHA materials licensees
Relating to NRC-licensed and utilities
Facilities (53 FR 43950, holding CPs and
October 31, 1988) OLs.
88-99 Detection and Monitoring 12/20/88 All holders of OLs
of Sudden and/or Rapidly or CPs for PWRs.
Increasing Primary-to-
Secondary Leakage
88-98 Electrical Relay Degradation 12/19/88 All holders of OLs
Caused by Oxidation of or CPs for nuclear
Contact Surfaces power reactors.
88-97 Potentially Substandard 12/16/88 All holders of OLs
Valve Replacement Parts or CPs for nuclear
power reactors.
88-96 Electrical Shock Fatalities 12/14/88 All holders of OLs
at Nuclear Power Plants or CPs for nuclear
power reactors.
88-95 Inadequate Procurement 12/8/88 All holders of OLs
Requirements Imposed by or CPs for nuclear
Licensees on Vendors power reactors.
_____________________________________________________________________________
OL = Operating License
CP = Construction Permit
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