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DA: $2.8M settlement with corp. NY in sewer scam

NEW YORK (AP) -- Brooklyn prosecutors say a corporation admitted to violating environmental law for dumping industrial waste into the New York City sewer system and will pay $2.8 million.

District Attorney Charles Hynes says Sepco Industries, Inc. admitted it was illegally disposing of waste water that included hazardous metals through a hose inserted into a floor drain. The company specializes in the design and custom metal plating of bathroom and kitchen fixtures and accessories.

Prosecutors say they were first altered them to the issue last year by a former employee of Sepco's parent company, Watermark Designs, LLC. Water samples were taken that showed metal levels exceeding federal limits.

The company also admitted tax fraud. Part of the settlement will be used for a remediation plan with the state Department of Environmental protection.