‘We dispute that’: Former Shoosmith owners outline defense as judge allows return to Texas

CHESTERFIELD COUNTY, Va. — Attorneys for the former owners of the bankrupt Shoosmith landfill say their clients strongly dispute the criminal charges against them and are prepared to fight allegations that they knowingly and willfully abandoned the landfill.

The comments came Friday after a Chesterfield judge granted Fred Nichols and Larry McGee $50,000 secured bonds and allowed them to return to their homes in Texas once the bonds are posted.

Nichols and McGee left court Friday afternoon preparing to fight criminal charges related to allegedly abandoning the Shoosmith landfill and violating Virginia water control laws.

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Dale Mullen, the attorney representing Nichols, described the decision allowing them to return home as reasonable.

"Both businessmen who need to get home to take care of their health concerns and their families, very reasonable thing and very standard to release them on a recognizance bond with certain conditions," Mullen said.

Attorneys push back on allegations

As CBS 6 has previously reported, the criminal charges follow years of environmental problems at Shoosmith, including potentially toxic liquids and gas seeping from the landfill and getting into Swift Creek.

Watch: Records show Chesterfield's Shoosmith landfill leaked waste into Swift Creek years before bankruptcy

After the landfill's owners filed for bankruptcy, a court-appointed trustee described conditions at the landfill as a potential "environmental catastrophe."

In earlier court filings, lawyers for the Virginia Department of Environmental Quality alleged Nichols and McGee pocketed millions of dollars rather than investing that money into necessary infrastructure and remediation at the landfill.

CBS 6 investigative reporter Melissa Hipolit asked their attorneys about those allegations following Friday's hearing.

CBS 6: "There have been allegations made by the trustee as well as by lawyers for the DEQ that these men took millions of dollars out of the landfill that should have been going into the care of the landfill and took it for their own personal use. Do you have a response to that?"

Mullen: "We dispute that. We look forward to defending these charges."

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Hipolit also asked about the bankruptcy trustee's description of the landfill as a potential environmental catastrophe.

Mullen pointed to Shoosmith's regulatory record.

"I will say that the record indicates that in 17 years of operation and before the installation of certain gas harvesting wells, there was only one notice of violation in that entire time, and so I think it's important to recognize that number one, with regards to the criminal offenses, everyone carries with them a presumption of innocence, and we look forward to that, the opportunity to address that in the court. With regards to the DEQ record, I think the record speaks for itself," Mullen said.

Defense questions basis for criminal charges

Mullen told CBS 6 that the Shoosmith landfill was owned by a corporate entity and that Nichols and McGee were officers and directors of that entity.

He questioned how their actions as officers and directors became the basis for the criminal case.

"Best I can tell, is that the officers and directors, through application of a federal court-approved process, somehow violated the Virginia statute. We dispute that," Mullen said.

He and William Dinkin, McGee's attorney, said they believe their clients have a strong case to make.

One of the attorneys pointed specifically to what the Commonwealth will have to prove on the abandonment charge.

"Remember, what the Commonwealth has to prove is that there was a knowing and willful abandonment, and that's a really high standard," Dinkin said. "It doesn't mean that things went wrong that were unfortunate that weren't intended. It requires willful abandonment, and I think that that's a significant standard. It's a high standard, and we look forward to defending this case."

The charges against Nichols and McGee are allegations. Both men are presumed innocent unless and until proven guilty.

Judge changes bond conditions

Friday's ruling also resolves, for now, a dispute over whether Nichols and McGee could leave Virginia while their cases are pending.

The two men had previously turned themselves in overnight at the Chesterfield County Jail and were released on $25,000 unsecured bonds.

Chesterfield County

Former Shoosmith landfill owners turn themselves in overnight

Melissa Hipolit

Their initial bond conditions prevented them from leaving Virginia until their cases were finished.

On Friday, the judge granted each man a $50,000 secured bond and said the money must be posted before they can leave Virginia.

Once they return to Texas, their movements will still be restricted.

Under their bond conditions, Nichols and McGee are not allowed to leave the United States. They also cannot leave Texas without permission from the court unless they are traveling to Virginia for court proceedings.

Nichols and McGee are next scheduled to appear in court on Nov. 16.

Both men face more than 10 years behind bars and a potential fine of up to $100,000 if convicted of the charges against them.

CBS 6 will continue following the criminal cases and the ongoing environmental issues surrounding the Shoosmith landfill.

This is a developing story, so check back with WTVR.com for updates. Email the CBS 6 Newsroom if you have info, photos or videos to share.