For Immediate Release - April 05, 2010

Owner of Boston Real Estate Company Arraigned on Illegal Asbestos Removal and Disposal Charges

Defendants also face tax, payroll, and unemployment insurance charges

BOSTON - The owner of a Boston-based real estate development and management company was arraigned for the improper removal and disposal of asbestos at various properties throughout Massachusetts and for failing to provide pay records and evading unemployment insurance payments. John McGrail, age 46, the president and owner of JM Realty Management Inc., was arraigned on charges of violating the Massachusetts Clean Air Act for failure to file notices of asbestos removal with the MassDEP (3 counts), failure to comply with procedures for asbestos emissions control (3 counts), and improper disposal of asbestos waste (2 counts). McGrail was also arraigned on charges of evasion of unemployment insurance (4 counts) and failure to provide pay records (4 counts).

A Suffolk County Grand Jury returned indictments against McGrail and JM Realty on March 25, 2010. JM Realty was indicted on charges of violating the Massachusetts Clean Air Act for failure to file notices of asbestos removal with the Massachusetts Department of Environmental Protection (MassDEP) (4 counts), failure to comply with procedures for asbestos emissions control (4 counts), and improper disposal of asbestos waste (3 counts). JM Realty was also charged with evasion of unemployment insurance (4 counts) and failure to provide pay records (4 counts), and failure to withhold income tax (4 counts).

Authorities allege that, for three years between 2005 and 2007, McGrail, the principal of JM Realty and the founder of a group of businesses known as the Mayo Group, instructed his employees to perform demolition and renovation services at three different Mayo Group properties in Lynn, Boston, and Worcester, that had asbestos containing materials, including insulation, tiles, mastic, glazing and other building components. Authorities allege that asbestos containing materials were transferred to a warehouse at 177 Old Colony Avenue in South Boston, and thereafter distributed in dumpsters at various Mayo Group properties around Boston to be picked up with the regular trash. According to authorities, construction debris containing asbestos was also dumped at a vacant lot on Bubier Street in Lynn. None of these locations was permitted for the disposal of asbestos waste.

Authorities further allege that McGrail and JM Realty violated the Massachusetts Clean Air Act by failing to notify MassDEP of asbestos demolition, failing to follow mandated asbestos removal procedures during the demolition and renovation, and improperly disposing of asbestos waste. Authorities also allege that during the relevant time period, McGrail personally instructed his employees to pay workers in cash to remove and dispose of the asbestos containing materials. JM Realty allegedly failed to withhold taxes, make unemployment insurance contributions, or provide pay stubs for the workers.

The indictments stem from an investigation by the Massachusetts Environmental Crimes Strike Force (ECSF), an interagency unit which is overseen by Attorney General Coakley, MassDEP Commissioner Laurie Burt and Energy and Environmental Affairs Secretary Ian A. Bowles. ECSF officials involved in this investigation included Environmental Police Officers and MassDEP officials John Macauley and Don Heeley. The ECSF comprises prosecutors from the Attorney General's Office, Environmental Police Officers assigned to the Attorney General's Office, and investigators and engineers from the MassDEP which investigate and prosecute crimes that harm or threaten the state's water, air, or land and that pose a significant threat to human health.

A Suffolk County Grand Jury returned indictments against McGrail on March 25, 2010. McGrail was arraigned in Suffolk Superior Court on April 2, 2010, at which time he entered a plea of not guilty and was released on personal recognizance. McGrail and JM Realty are due back in court on May 3, 2010, for a pre-trial conference at which time JM Realty is expected to be arraigned. Clerk Magistrate Gary Wilson presided over the arraignment.

Assistant Attorneys General Andrew Rainer and David Lieberman, of Attorney General Coakley's Environmental Crimes Strike Force, are prosecuting the case.

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