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7th Grace executive last to plead not guilty

Tristan Scott
Montana Kaimin

March 31, 2005 - William J. McCaig, the former general manager of a Libby mine operated by W.R. Grace and Co., pleaded not guilty to a 10-count federal indictment Tuesday during his arraignment at the Missoula Federal Courthouse.

The indictment charges that seven top executives of Grace knew their Montana mine was releasing dangerous cancer-causing asbestos into the air and conspired to hide the known hazards from workers and area residents.

Six of the former and current employees pleaded not guilty at their arraignments Feb. 22.

McCaig did not appear with the rest of the men because his attorney, William Coates, had another trial that conflicted with the date.

U.S. Magistrate Judge Leif Erickson released McCaig following the arraignment but required him to surrender his passport and remain in the United States, report to the probation office in Missoula each month and refrain from possessing any firearms.

The same restrictions applied to the other six men.

All seven will appear at the federal courthouse for a pretrial conference at 9 a.m. today before Judge Donald Molloy.

The purpose of the conference is to arrange scheduling for the trial and to review the defense counsels’ preparations.

In the 49-page indictment, former manager of the mine Alan Stringer is accused of obstructing efforts by the Environmental Protection Agency to investigate the asbestos contamination beginning in 1999, when national reports first linked asbestos from the mine to the deaths and illnesses of nearby residents. That year, the EPA declared the mine a Superfund site and has since spent more than $55 million on cleanup.

While suppressing studies spelling out the dangers of its product, company officials supplied vermiculite to a junior high school for use on its running track and lied about it during the EPA’s investigation, according to the indictment. The document also cites instances in which company officials lied about having provided vermiculite insulation to locals for their homes, as well as for use at a nearby ice rink.

Stringer faces a maximum penalty of 70 years in prison, while Jack Wolter, former vice president and general manager of the mine’s Construction Products Division, and Robert Bettacchi, a senior vice president, each face maximum prison terms of 55 years.

The company could face a fine of up to $280 million — twice the amount of mining profits earned during its years of operation. Others named in the indictment are Henry Eschenbach, former health official for a Grace subsidiary; O. Mario Favorito, chief legal counsel for Grace; and Robert Walsh, former Grace vice president.

Vermiculite from the Libby mine was frequently used as attic insulation and as an ingredient in fireproofing products, potting soils and fertilizers.

While many former employees have developed asbestosis as a result of their direct exposure to the mine, their family members also suffer, since the tiny asbestos fibers were brought home on workers’ clothing.

Exposure to asbestos can lead to lung cancer and asbestosis — a disease that causes scarring of the lung.