Newtown Recycling Not Yet Affected By Feds Trash Crackdown

By John Voket

According to Newtown’s public works director, things were business as usual at a Danbury transfer station that was taken over by federal law enforcement officials as part of a historic criminal investigation into alleged mafia ties to regional trash hauling and waste disposal businesses. The White Street station accepts recycling from two companies that provide services to Newtown residents.

Public Works Director Fred Hurley told The Bee Tuesday that while one reputable hauling company owned by the Pendergast family is still providing recycling service to about two-thirds of the community, and transferring collections with “no sign of any problems,” the other company that serves the southern part of Newtown was among the ten businesses indicted by federal officials late last week.

“But so far, there is no impact on our residents,” Mr Hurley said, adding that if the transfer facility becomes temporarily affected by the criminal investigation, he would seek other options through a quasi-governmental regional recovery authority.

“We’re not held hostage by any one vendor,” Mr Hurley said, reassuring residents on roads including Pine Tree Hill, Brushy Hill, Botsford Hill, and Jeremiah Roads that they should see no discernable change in their recycling service.

“It’s not like [federal officials] haven’t done this kind of thing before,” he said.

After allegedly operating for years with the Mafia as its silent partner, southern Connecticut’s largest garbage-hauling conglomerate was being staffed this week by federal marshals, according to an Associated Press report Tuesday. One of those companies, Diversified Waste Disposal Inc of Danbury, is the second of two contractors handling Newtown’s recycling pickups.

In the largest federal business takeover in Connecticut history, authorities seized control Friday of 25 companies suspected of helping carve out mob-controlled garbage routes. Now marshals must lawfully run a business in an industry that prosecutors say has been dirty since the 1980s.

“We seize assets all the time, but running a business is something new for us here,” said US Marshal John Bardelli.

Marshals spent last weekend at the Danbury compound that is home to businessman James Galante’s trash empire. With Mr Galante in prison and locked out of his more than 60 business and personal bank accounts, authorities must keep the trucks running and avoid letting the garbage pile up.

“We had a couple calls this morning from residents that were a little anxious,” Danbury Mayor Mark Boughton said Monday. “But we haven’t had any complaints. I was out this morning and trucks were driving around doing their pickups.”

As of Tuesday, the Newtown selectman’s office had logged no calls regarding either the transfer station or any of the hauling businesses affected by the federal crackdown.

Mr Galante’s companies serve about 20 southern Connecticut and eastern New York towns. His transfer station handles about 80 percent of the region’s garbage and his pickup businesses are among the most dominant in the area.

Federal prosecutors say the Genovese crime family ensured that dominance in exchange for quarterly payments of $30,000.

The companies are required by a court order to maintain their service. The marshals are there to ensure that happens, institute new accounting standards, and sign off on every financial transaction the companies make.

Leonard Briskman, who supervises these types of business operations for the US Marshals Service, said marshals prepare for months prior to an indictment, researching companies and industries. Mr Briskman’s teams have seized control of casinos, horse farms, supermarkets, gas stations and, now, trash companies.

“In many cases, the businesses end up more efficient,” he said. “There’s a second set of eyes and many of the illegal activities have stopped, so more cash is being retained.”

Cheryl D. Reedy, director of the Housatonic Resources Recovery Authority, the public agency that oversees trash pickup in the region, said she plans to meet with federal authorities this week to find out how things are working.

“Garbage and recyclables need to keep moving through that place and payments need to keep moving,” she said.

In Newtown, virtually all the trash collected by commercial haulers or brought to the local landfill by residents is processed and dispatched to a facility operated by Wheelabrator in Bridgeport, Mr Hurley said.

Trying to step into the operations element of these critical types of businesses is a daunting task, Mr Bardelli said, one that marshals are still trying to grasp. Experienced officials arrived from Washington last week to oversee the takeover and, in the coming weeks, a management company likely will be hired to run operations in the year or more until trial.

“If everything goes according to plan, the customer will not notice any difference,” Mr Bardelli said.

In a related development, the Danbury Trashers have suspended operations for the 2006-07 season, the United Hockey League announced Monday night. The move comes just days after Trashers owner James Galante was arrested by federal authorities on a 72-count indictment

Among other things, the indictment charges Galante with racketeering, extortion, witness tampering and circumventing the UHL’s salary cap.

The Associated Press contributed to this story.