Two Red Hill Fuels Department employees indicted for false statement regarding May 6, 2021 jet fuel spill

Acting United States Attorney Ken Sorenson announced today that John Floyd, 63, of Mililani and Nelson Wu, 38, of Waipahu were indicted Thursday for conspiracy to commit an offense against the United States and causing another person to make a materially false statement or a material omission in a matter within the jurisdiction of the executive branch of the government of the United States.

According to the allegations in the indictment:

Between May 6, 2021 and Oct. 1, 2021, Floyd and Wu were civilians employed as Fuels Department Deputy Director and Fuels Department Supervisory Engineer, respectively, of the United States Navy, Navy Supply Systems Command Fleet Logistics Center Pearl Harbor, which included the Red Hill Bulk Fuel Storage Facility (Red Hill).

On May 6, 2021, two couplings on the pipeline at Red Hill failed during an attempted transfer of jet fuel. The attempted transfer was aborted after approximately 20,000 gallons of jet fuel from a storage tank flowed into the pipeline and then spilled into the tunnel.

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As the regulator of Red Hill due to an authorization by the United States Environmental Protection Agency, the Hawaii Department of Health issued a request for information (RFI) to the United States Navy regarding the May 6, 2021 spill.

In connection with the Navy’s October 1, 2021 response to the RFI, Floyd and Wu allegedly willfully caused the Navy to falsely state that the May 6, 2021 spill involved an estimated 1,618 gallons of jet fuel, rather than 20,000 gallons as then known by Floyd and Wu to have been spilled, and omitted information and records material to the RFI.

If convicted of the charged offenses, Floyd and Wu face a maximum sentence of five years’ imprisonment and a fine up to $250,000 on each charge.

The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.

This case is being investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, the Environmental Protection Agency Criminal Investigation Division, and the Environmental Protection Agency Office of the Inspector General.

The case is being prosecuted by Assistant US Attorney Craig S. Nolan.