Underground Storage Tank Cleanup Consultant GSA Engineering Settles with State over Fraud AllegationsCase Related to Cal Tech Environmental Laboratories Felony Conviction

SACRAMENTO CA (4/11/2019) – The State Water Resources Control Board announced a settlement today
with GSA Engineering Inc. (GSA) over allegations that it submitted inflated invoices to the
Underground Storage Tank Cleanup Fund and made kickback payments to a laboratory that
conspired to falsify reports.

“Reimbursement of actual costs and submittal of reliable analytical data are essential to our
Cleanup Fund program,” said Yvonne West, director of the Office of Enforcement. “The Office
of Enforcement will vigorously investigate and prosecute unscrupulous firms and individuals
who falsify or otherwise compromise documents and data for financial gains.”

The State Water Board alleged that GSA, an environmental consulting firm based in Pacific
Palisade, made misrepresentations with reimbursement requests that included hidden
kickback payments in padded laboratory invoices and directed the laboratory to revise results
to an expected value rather than resample and rerun questionable results. The laboratory was
Paramount-based Cal Tech Environmental Laboratories, LLC and its owner, Mr. Roobik
Yaghoubi. Yaghoubi pleaded guilty to a felony false data charge in Los Angeles County (Case
No. BA450757) in November 2017.

As part of the February 2019 settlement between GSA and the State Water Board, GSA will
pay a $90,000 penalty, and the company and its principal, Daniel Louks, will be disqualified
from participating in any State Water Board reimbursement program, including the Cleanup
Fund.

For more information on the State Water Board’s efforts to prevent, investigate and prosecute
cases of fraud, waste and/or abuse against the Cleanup Fund, see the fact sheet. The State
Water Board maintains an online list of disqualified businesses and persons banned from
working for the State of California.

The Underground Storage Tank Cleanup Fund provides a means for petroleum UST owners
and operators to meet the federal and state requirements of maintaining financial responsibility
to pay for any damages arising from their tank operations. The Fund assists a large number of
small businesses and individuals by providing reimbursement for expenses associated with the
cleanup of leaking USTs. The Fund also provides money to the Regional Water Boards and
local regulatory agencies to abate emergency situations or to cleanup abandoned sites that
pose a threat to human health, safety, and the environment, as a result of a UST petroleum
release.

Contact: Blair Robertson Phone: (916) 341-5263 Blair.Robertson@waterboards.ca.gov

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