Salvage Company Accused of Ripping Off City of Fairbury Resurfaces Under a New Name

By Gordon Hopkins A salvage company accused of not paying for over $100,000 worth of machines, as well as exposing locals to carcinogenic substances, is now operating under a new company name.In 2022, the City of Fairbury contracted with Texas-based Industrial Engineering Solutions LLC (IES) to purchase several large machines from the power plant no longer in use, such as generators, turbines and condensers. The City of Fairbury received a down payment of $12,000 but has never received the balance.Also included in the contract was the demolition of an oil tank and disposal of the oil. That was not completed and the city was forced to foot the bill for that as well.Texas Secretary of State records indicate that, as of October 20, 2023, IES had forfeited the “right to transact business in Texas.” The New BusinessThe new company is called Jim’s Wrecking & Surplus LLC. On the business’ website, https://jimswrecking.com, there is a video showing the demolition of the used oil storage tank in Fairbury that is being used to advertise the business’ services, along with a photograph of one of the machines that IES took but did not pay for.Jim’s Wrecking & Surplus was registered with the Texas Secretary of State on September 17, 2024. According to the Certificate of Formation, the owner of the business is Nicholas Siganoff.Nicholas Siganoff is a known alias of James Mitlo. It was under the name Siganoff that he was sued in 2021 along with IES by Arizona Public Services (APS), an electric utility serving central Arizona.It was under the name James Daniels that Mitlo contracted with the City of Fairbury. It is worth noting that a LinkedIn page for Jim’s Wrecking & Surplus lists the Senior Buyer as “James d.”Former Mayor Spencer Brown, APS attorney David Gaona and local residents hired by IES viewed photographs of Nicholas Siganoff/James Daniels and confirmed they are the same man.Although James Daniels claimed to be the owner of IES, the registered agent for IES was Tony Mitlo. FJN reached out to Tony Mitlo and asked if he is associated with this new venture in any way. As of press time, he has not responded. Toxic SubstancesIn 2022, several locals from the Fairbury area were hired by IES as subcontractors to work in the power plant and oil tank. They have since alleged they were exposed to asbestos and polychlorinated biphenyls (PCBs), both known carcinogens.As with IES, Jim’s Wrecking & Surplus advertises the cleanup of such hazardous materials as asbestos and PCBs.According to the Texas Department of State Health Services (DSHS), “The Texas Asbestos Health Protection Act (TAHPA), Section 1954.101 specifies the asbestos-related activities that a person must be licensed to perform. The Texas Asbestos Health Protection Rules (TAHPR), Section 296.41(a) require a person to be licensed or registered to perform any asbestos abatement or asbestos related activity as required under the TAHPA. In addition, Section 296.41(g)(2) prohibits a licensee from making false, misleading, or deceptive claims in any asbestos-related advertising, announcement, presentation, or competitive bidding.”FJN has found no record that Jim’s Wrecking & Surplus is licensed or registered to perform asbestos abatement. Contacting the New BusinessFJN called the phone number on the website for Jim’s Wrecking & Surplus. On Saturday, February 22, the phone was answered by someone who refused to provide his name and refused to verify that the number reached was for Jim’s Wrecking & Surplus. He said only, “What is this about?”After asking if IES and Jim’s Wrecking & Surplus are the same business, the person on the phone said, “Wrong number,” and hung up.FJN also reached out using the email on the website. As of press time, no response has been received. EPA InvestigationIn 2023, the Environmental protection Agency indicated an investigation into IES had been opened. FJN asked Jacob Nicholls, Special Agent for the EPA’s Criminal Division, if he was aware of the new business. As of press time, he did not respond.

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