City Awarded $144,000 Judgment
By Gordon Hopkins
The City of Fairbury has received a judgment of approximately $144,000 against Industrial Engineering Solutions LLC, (IES) a company that is also under investigation by the criminal division of the Environmental Protection Agency (EPA). However, the city may have difficulty in collecting the money.
Lawsuit and Judgment
In 2022, the City of Fairbury contracted with Texas-based IES to purchase several large machines from the power plant no longer in use, such as generators, turbines and condensers. The City of Fairbury filed the lawsuit on September 29, 2023, contending IES removed the equipment from the now-defunct power plant but left town without paying the full, agreed-upon amount of $120,000.
Also included in the contract was the demolition of an oil tank and disposal of the oil. That was also not completed and the city was forced to foot the bill for that.
On July 15, 2024, a hearing was held in Jefferson County District Court via Zoom. Attorney Adam Kost with Rembolt Ludtke LLP appeared on behalf of the city. No one appeared on behalf of IES and no one filed a response to the city’s motion.
Julie D. Smith, the presiding judge, granted the motion for default judgment, “The court finds that the allegations in the complaint are deemed to be true. Default Judgment is awarded in favor of the plaintiff and against the defendant.”
City Attorney Kurth Brashear announced the decision at a meeting of the Fairbury City Council Tuesday evening, July 16, “So we now, as the city, have a judgment for $119,453.63. Those are the costs incurred, to either what was taken by them or what the city’s had to incur to do that work, plus $25,000 plus in interest prior to judgment. The judgment also includes post judgment, interest and court fees and costs.”
Brashear said, “The question now is collections and how can we enforce that and we will be looking at ways to try and achieve some collection on this, but that will involve out-of-state accounts and efforts to enforce that judgment in other jurisdictions.”
Reason for the EPA Investigation
While asbestos was not mentioned in the contract with IES, it does say IES will follow OSHA (Occupational
Safety and Health Administration) standards.
Local workers hired by IES cut up asbestos insulation while removing the equipment, leaving the entire building contaminated with friable asbestos. As a result, the Nebraska Department of Environment and Energy (NDEE) has prohibited anyone from entering the building without a respirator.
Those local workers allege they were exposed to asbestos, a known carcinogen, and that the asbestos was not disposed of in accordance with state and federal laws.
Who is Jimmy Mitlo?
Although IES was registered with the Texas Secretary of State, the address on the contract signed by Fairbury Mayor Spencer Brown was in Riverside, California. An online search showed the address was actually for a beauty parlor.
A key figure with IES that the city dealt with is Jimmy Mitlo, although Mitlo gave the city a false name, Jimmy Daniels. Locals hired by IES said Mitlo was the man in charge of the operation. Those local workers have asked to remain anonymous for fear of reprisals.
Neither the name Jimmy Mitlo nor Jimmy Daniels appear in any of the court documents. Instead, the defendant named in the lawsuit is Tony Mitlo, who is listed as “Registered Agent” of IES.
Friday, July 19, FJN called the telephone number listed in court documents for Tony Mitlo. The person who answered did not identify himself but said, “Now this is something that I need to get with Tony and we need to discuss this. The whole big mix up.”
When asked about Jimmy Mitlo, he said, “That’s someone who owes the company a lot of money and I need to get with him.”
At that point, the phone call was disconnected.
When asked why Jimmy Mitlo’s name does not appear on any of the documents, Brashear advised, “IES, which is a legal entity, was the party to the contract with the City and, accordingly, was the party that the City had its cause of action against. No person, including the individual you name, signed a contract with the City in their individual capacity, which would be the basis for including an individual as a defendant in the litigation.”
The signature on the signed contract is James Daniels. That name appears in court documents but not as a defendant.
Brashear added, “If IES had entered an appearance, we may have uncovered facts during the discovery phase that would have supported adding one or more individuals as a defendant. As you know, it did not appear so no discovery occurred and the City has now obtained a judgment in its favor.”
On November 19, 2010. Mitlo pleaded guilty in U.S. District Court for the Southern District Court of Texas to one count of willfully conspiring to impede and to impair the IRS (Internal Revenue Service) in its collection income tax liabilities. Mitlo pleaded guilty and was sentenced to 24 months in federal prison without parole. The court included in its order restitution in the amount $555,720.36.
Mitlo was released from prison on June 17, 2013, and placed on post-release supervision until the debt was repaid.
Car Accident in California
On March 6 of this year, Mayor Brown received an email from a man named Rod Gordon about Jimmy Mitlo, “He backed into my vehicle in Barstow, CA and because of insurance purposes I have a photo of his driver’s license and the vehicle he was driving. I also have a photo of another vehicle that was with him.”
Brown responded to the email, “Rod, I would very much appreciate anything you have regarding Jimmy Mitlo.”
According to Gordon, Mitlo had been driving a rented Chevy Suburban from Avis Car Rental. A pickup truck was driven by another man, who Gordon believed was with Mitlo. Photos sent to Mayor Brown by Gordon were of Mitlo’s driver’s license, license plates for both vehicles, an insurance card and the man who was driving the pickup truck at the time of the accident.
FJN asked Mayor Brown if he forwarded this information or the photos to the EPA or other law enforcement, Brown indicated he had informed only the city’s attorneys.
On May 21, 2024, the mayor told FJN via email, “I have not heard anything from the EPA regarding IES for months. (T)he last conversation I had (on the phone) was that they told me they would not comment, work with my attorneys or update me on anything they had going on.”
On May 22, FJN asked why Mayor Brown did not send this information to the EPA. Brown responded, “The EPA already had much more information than what we had. Like I said before, the EPA was not interested in partnering, sharing information or updating us. Furthermore, none of the information from this email was of significant use, the drivers license being the most critical piece, did not even have a valid address.”
Mitlo’s California driver’s license listed an address in Riverside, California. A reverse address search shows the address is for a business called Post Box & More.
The investigator for the EPA confirmed to FJN he had not been sent any of this information.
Criminal Charge in Texas
On May 22, 2024, Jimmy Mitlo was arrested in Galveston County, Texas for assault, a misdemeanor. According to the complaint, filed on July 3, 2024, by Jack Roady, Galveston County Criminal District Attorney, “Jimmy James Mitlo, hereinafter styled Defendant, heretofore, on or about the 11th day of April, 2024, in the County of Galveston and State of Texas did then and there intentionally, knowingly, or recklessly cause bodily injury to (the alleged victim) by punching, and or striking on or around the head or neck area.”
Mitlo is currently free on a $1,500 bond. His next appearance in Galveston County Court is scheduled for Tuesday, August 13, 2024.
