Largest Criminal Fine in Florida History, $2.25 Million-Plus, Assessed for Wetlands Violations

In the culmination of a whopper of a wetlands violations case in Panama City Beach, the feds' general revenue fund gets cash, and plenty of it -- and the Environmental Protection Agency gets ... what else? ... acreage.

Brian Raphael DIsernia, 69, of Panama City Beach and Lagoon Landing LLC, a corporation controlled by DIsernia, were sentenced Wednesday in federal court in the Northern District of Florida for illegal dredging and felony wetlands violations in Panama City.

The two defendants were ordered to pay a criminal fine totaling $2.25 million -- again, that's $2.25 million -- the largest criminal fine assessed for wetlands-related violations in Florida history. DIsernia was sentenced to pay a $100,000 criminal fine, while Lagoon Landing LLC was sentenced to pay a $2.15 million criminal fine, a $1 million community service payment, and a term of three years probation.

DIsernia pleaded guilty to knowingly violating the Rivers and Harbors Act. DIsernia was charged with dredging an upland cut ship launching basin in Allanton and the channel connecting it to East Bay between December 2009 and February 2010 without obtaining a permit.

Lagoon Landing LLC pleaded guilty to a felony violation of the Clean Water Act for knowingly discharging a pollutant into waters of the United States without a permit. Between 2005 and 2010, Lagoon Landing, through its agents and employees in conjunction with persons using tractors and other heavy equipment, altered and filled wetland areas of property it controlled in Allanton without obtaining a permit. The wetland areas were right next to East Bay.

Lagoon Landing LLC was also ordered to pay a $1 million community service payment to the National Fish and Wildlife Foundation, a charitable nonprofit organization created by Congress. The Foundation will use the money to fund projects for the conservation, protection, restoration and management of wetland, marine and coastal resources, with an emphasis on projects benefiting wetlands in and around St. Andrew Bay.

The Southeast is home to nearly 30 percent of the nations wetlands, said Acting Regional Administrator Stan Meiburg. Todays sentencing sends a clear message about the importance of protecting these resources, which are vital to the health of waterways and communities that are downstream.

What did the EPA get out of this?

In a separate but related civil settlement, Northwest Florida Holdings Inc., a Florida holding corporation controlled by DIsernia, entered into an Administrative Compliance Order with EPA that will result in the restoration of approximately 58.63 acres of wetlands and upland buffers.

The wetlands will be protected from future development by a conservation easement. The corporation also agreed to study the water quality in and around the Allanton and Nelson Street shipyards; upgrade stormwater protection for the Allanton Shipyard; withdraw applications to convert the launching basin to a marina and create a Planned Unit Development at the Allanton Shipyard; and hire someone to oversee environmental compliance.

In other separate but related civil settlements ...

• Thecorporation will pay a $9,750 civil fine to the Ecosystem Management and Restoration Trust Fund, and $94,718.25 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.
• Bay Fabrication Inc., a corporation controlled by DIsernia, agreed to conduct stormwater corrective actions and water quality studies at the Nelson Street Shipyard and will pay a $6,000 civil fine to the Ecosystem Management and Restoration Trust Fund, and $76,923 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.
• Peninsula Holdings LLC, a corporation controlled by DIsernia, agreed to conduct stormwater improvements at property it owns on Nelson Street in Panama City, and the corporation will pay a $1,500 civil fine to the Ecosystem Management and Restoration Trust Fund.
• DIsernia and his wife Miriam entered into a Consent Order with FDEP to remove unauthorized fill materials from property located in Panama City Beach. The DIsernias will pay a $250 civil fine to the Ecosystem Management and Restoration Trust Fund.