A suburban contractor received a sentence of over six and a half years in federal prison for his involvement in a scheme deemed a potential environmental disaster. The case involved leaving large quantities of cancer-causing asbestos material during a demolition project at a medical campus in Waukegan in 2023.
Carl Fioravanti, 58, from Highland, Indiana, pleaded guilty in June to charges of wire fraud and tax fraud. He admitted to collecting more than $1.8 million from the general contractor despite being aware that the Lake Behavioral Hospital site was not fully remediated. He then falsified records and provided false information to state and federal regulators to conceal these actions.
The Occupational Safety and Health Administration (OSHA) captured surveillance photos showing workers at the site without protective gear. These workers operated next to a working hospital building. The site was supposed to be cleared of asbestos by Fioravanti’s remediation company.
According to court records, when the general contractor learned that massive amounts of asbestos were left mixed with ordinary demolition debris, they faced over $26 million in cleanup, legal, and regulatory expenses. Fioravanti, former president of Lansing-based Alliance Environmental Solutions, also admitted to lying about asbestos removal in another project involving the old Harvey Hotel.
U.S. District Judge Franklin Valderrama sentenced Fioravanti to 80 months in prison. The judge expressed outrage, citing this case as an extremely callous example of someone pursuing financial gain at the expense of safety. He emphasized the risk to workers exposed to airborne carcinogenic material and the potential spread of asbestos particles to family members.
Asbestos exposure can lead to serious health issues years later, so the physical impact on workers or nearby residents remains uncertain. Judge Valderrama highlighted the seriousness of the crimes by stating Fioravanti’s actions were driven by greed.
Assistant U.S. Attorney Timothy Chapman emphasized Fioravanti’s awareness of asbestos dangers, making the outcome foreseeable. Fioravanti’s defense asked for leniency, noting his lack of criminal record and the pressures he faced.
Before sentencing, Fioravanti read an apology in court, acknowledging his wrongful conduct and expressing regret. In addition to the hospital incident, he admitted to lying about asbestos removal from a 2018 project at the Chicago Park Hotel in Harvey. Both projects were subcontracted to KLF Enterprises, who hired Fioravanti’s company for asbestos removal.
Fioravanti also directed improper disposal of asbestos-filled debris in collaboration with KLF’s owner, James Bracken, who is under FBI investigation but not charged. Investigators found tampered manifests to conceal improper disposal.
After court, Fioravanti’s attorney confirmed his plea did not involve cooperating with federal investigations.