ML20023C901
| ML20023C901 | |
| Person / Time | |
|---|---|
| Issue date: | 06/03/1980 |
| From: | Strickler L NRC OFFICE OF INSPECTOR & AUDITOR (OIA) |
| To: | NRC OFFICE OF INSPECTOR & AUDITOR (OIA) |
| Shared Package | |
| ML20023A415 | List:
|
| References | |
| FOIA-82-515 NUDOCS 8305180247 | |
| Download: ML20023C901 (13) | |
Text
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,,I utn1 L D ST Al t s E * '.. f '- 'I NUCL E AR REGUL ATORY COMr.itSSION
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June 3, 19PJ' l'D'OPAt1Dillt FDP.:
file L. J. Strichler, Chief, Investina tions 'Q,)
F P.0":
Office of Insnector and Auditor s
SilBJECT:
i:llCL EAP, pHAPl'ACY, if:C. (f:PI)
On June 3,1930, typed copies of tuo statenents of' ~
tere placed in the llPI staterent file.
Foth statenents were dated i'ay 16, IPP.O.
One represented five handuritten pages and the other represented seven handeritten pages.
Also on June 3,1980, typed copies of two statenents of.
were placed in the I P1 statenent file, foth staterents trere dated ray If,19PO.
Dne represented einht handuritten rianes and the other represented 17 handuritten panes.
The originals of all four staterents are in the personal possession of IE investinator Peter faci.
8305180247 830412 hH L82-515 PDR
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!!r. Julian Greenspun A}tachment 6 - Conv_nf a _f tav_16,1980, handwrttten._12 page statement of b.
in whicht... - _
- identifies among other things, llPI Philadelphia's failure to ccr. ply with various conditions of its nuclear r.aterials license.
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statement also advises that itPI management treguently knew or vere advised that its practices were in violation of its license conditions but, for various profit related reasons, cnntinued such practices. - Copy of a_l'.ay. 16, 1980, handwritten seven page statement of which, essentially, contains inforr.ation of a type sinilar to that contained in Attachment 6. - Copy _of a memorandum dated liarch 17, 1980, from i-to llPI entitled " Status of itPI Radiation
%atety Program." The memorandum identifies numerous deficiencies by liPI, including itcas of non-compliance with liRC regulations and license conditions.
Sincerely, Oridnal Signed by nagu Fogura P.oger A. Fortuna, Assistant Director for Investigations Office of Inspector and Auditor -
Enclosures:
As Stated Distribution $
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OIA 79-54 OlA Reading RFortuna JStrickler onice F.../.d[0! ': /
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3 1980
!!r. Julian Greenspun Deputy Chief for Litigation Criminal Division U.S. Department of Justice 1.'ashington, D.C. 20530
Dear Julian:
For your infomation and use, I am enclosing copics of the following documents which pertain to our investigation of fluclear Phamacy Inc.
(i:PI).
16, 1980, - A typed copy of a handwritten five pace l'ay
._ rega rd ing statement by fomer flPI employee t,
an apparent conflict of interest byr.fomer Chief, !*.aterial R n
f;RC.
Attach 3cnt 2 - A typed copy of a handwritten eight page f ay 1G,1980,-
stateacnt by fomer IfPI enployeer'
,,. _,. y
.r.egarding an apparent _ conflict of interest by 4M L...
_. - - - Copics of tuo pieces of correspondence, respectively dated l'.ay_3 and !!ay 5,1980, shouing thatafter ternining his empl
[ the I;RC to join !!PI managenent, represents flPI in matters before the llRC.
~
- Attachnent 4 - Copy of IIRC Fom 181, Personnel Action Request, tihich signed on Febre,u.rf. 19, 1980, i' advising that he would resign from the liRC, effective I* arch 15,1980, to take employnent with flPI, Albuquerque, !!cw I'exico.
+ Record of Leave Data - Copy of :
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(5f-ll50)'," dated Api-il 4,1930, shouing thatl
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g resigned from the IIRC effective l' arch 15, 1980. ~ ~ ~ ~. ~
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O F F IC C f...............
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STATEMENT OF.
I,<r--
hereby make the following statement to Peter E. Baci, who has L
t identified himself to me as an NRC investigator.
I make this statement freely I
with no threats or promises of reward having been made to me.
l l
I reside at I j
3
.' Colchester, Connecticut, and am currently employed e
cs a health physics technician by Nuclear. Support Services of Woodbridge, Va.
j i
at the Haddam Neck Nuclear Plant.
I have about 1\\ years experience in the nuclear industry, primarily as an H. P. Technician, and prior to joining Nuclear Support Services, was employed in that capacity by Nuclear Pharmacy, Inc., in both their Philadelphia and Chicago facilities.
I first became aware ofi
~
'as the NRC supervisor having responsibility for NPI (Elfreth Alley).
Mr.-
who worked in NRC's Region I office was having fairly frequent telephone conversations with NPI l
radiation safety officer {. __ _ f when I first came to work in mid-3 February 3980.
Mr. [
8.related some of these conversations to me and we were both under the impression that Mr.
iwasdealingwithMr.[
in his capacity as an NRC representative.
We had no reason to believe otherwise because Mr.#
was introduced to Mr.l in his official NRC l...
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'T capacity and never indicated to eitherl or.myself that his interest i
was anything but official.
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.On,about March 1,1980, about a week before I went out to Chicago, Mr.'
_._.-t He asked Mr.
) if I
- -was talking to Mr.{i; 2 /p ;. lon the phone.
r- -
could get on the line and, he said yes.
During that conversation, Mr.]
gave us the impression that he realized that NPI was making an effort to turn around and that yes, there is a problem, NRC is aware of it and knew we were making every possible attempt to correct it.
This conversation and all the r.
earlier conversations:
' had with Mr.!
.were charac-t terized by him as'"off the record." He indicated that he was in a position and couldn't compromise, but would like to help.
There were certain things he could do and certain things he couldn't do.
But he was willing to listen, off the record, and let us discuss our problems and progress with him.
At this time, I thought his interest was that of an NRC employee, and I took this interest to be concern on this part for getting NPI straightened out.
When I went to Chicago, I learned that Mr.l'....
. - ihad been negotiating employment with NPI and would be coming to work for the company.
One day, I do not recall the exact date, but after Mr. 0-n' kand I learned of l
Mr.j impending job change, Mr.
Icame to visit Mr. l l
at Philadelphia.
We had a 3 way phone coversation between myself in Chicago a nd n.
and)
,,j.in Philadelphia.
Mr.'.... ~., vanted to know t
what the situation was in Chicago and asked if he could stay in touch to keep l
l up to date on what the problems were and what progress had been made.
He didn't actually mention it, but he was aware that we were very close to having an inspection in Chicago, and he indicated that he would check the grapevine and find out what was going on.
~
a called me on two other occasions that I recall, also when I was in
\\....
-.. a Chicago.
Once was immediately after the tiRC inspection at which time he told me that he would try to find out what we could expect, whether a slap on-the-wrist letter or a civil penalty.
During these telephone conversations, I made Mr. j aware of a number of problem areas at the Chicago facility, including the problems we were having with contaminated ammunition boxes.
These boxes are used to transport the dosage units to the hospitals.
I mentioned the waste situation to him and he made suggestions regarding the use of cinder blocks, concrete bins and lead-lined doors.
I told him about specific problems such as calibration on meters, linearity tests on dose calibrators, etc.
We had an extensive discussion co.,cerning the bio-assay program.
I told him what had and had not been done and what I was doing concerning the bio-assay program.
In essence, we discussed a number of things, many of which we could have been cited for during the course of an inspection by the 11RC.
To my knowledge, no one fiom the liRC ever came out following those discussions to review or look at the many problems we discussed.
On the day I resigned, Mr.
and I offered t'o give Mr.f
~~
a L.-
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memorandu'm,, dated 3/17/80, which listed the many problems and violations we had uncovered as well as what steps we had taken towards correcting them.
This memo was prepared at the request of Company President Robert Sanchez when SD g
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who and I intended to resign.
Mr. I '
he 'iearned that Mr.*L_
1_.
was t'.here on his first day, March 17,'1980, refused to accept or even discuss
[
h the memo or its contents.
While the memo was prepared by Mr.
and I specifically concerni$g the Philadelphia facility, 75% of the problems and violations exist in the Chicago lab as well.
It was I-have read the foregoing statement consisting of 5 handwritten pages.
written at my request by Mr. Baci and I have made and initialed any necessary This statement corrections.
I have signed my name in the margin of each page.
is true to the best of my knowledge and belief.
.,. -..}s/
I
- bbH Subscribed and sworn to before me this 16th day of May,,1980, at Colchester, 4
Conn.
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Peter E. Baci NRC Investigator
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.c STATEMENT OFl
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a _. - _ hereby make the following statement to Peter E. Baci, who has identified himself to me as an NRC Investigator.
I make this statement l
freely with no threats or promises of reward having been made to me.
Iresideatj,_. _ _ _ _ _ ~ _
i Colchester, Conn., and am currently employed at '
the Haddam Neck Nuclear Plant as a Health Physics technician by Nuclear Support Services of Woodbridge, Va.
Prior to accepting my present position, I was employed by Nuclear Pharmacy, Inc., at the Elfreth Alley Apothecary, 31-33 N.
2nd St., Philadelphia, Pennsylvania 19106.
My first direct contact withf was on January 38, 1980 in King of Prussia, Pennslyvania.
This was my first work day with NPI and I attended a management meeting at the office of NRC Region I which was atten.ded by Robert Sanchez, President of NPI, Nunzio DeSantis, NE District Manager, NPI, f
'. l'anager of the Philadelphia facility, NPI.
NRC was represented by Inspector.'
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and her supervisor, who was Mr.
, and "/ a M r.
'from NRC licensing.
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At that meeting, Mr,M
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'was functioning as a member or representative i
f of NRC.
I later learned from Mr.'
-that several months prior to that L.. _ --. -
meeting, NPI had made him a contract offer for the position of Corporate Radiation Safety Of ficer.
He said that he found the offer basically acceptable but had a few minor points he wanted @o change.
Since he felt he was close to cn agreement, he removed hicscif from the HPI case.
Af ter not hearing from NPI
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g g for a'n extended period of time, he hold me that he put himself back on thE liPI
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case. This was some unknown time period prior to the management meeting.
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told me that immeidately following the management meeting on January 18, Mr. Sanchez took him aside and reopened ' egotiations with him.
I n
do not know whether he again removed himself. from the NPI case but this should be a matter of record with Region I, i RC.
I should state at this point that the matter of Mr.
negotiations with tipi and their subsequent offer of employment to him was not known to me until much later on, approximately one or two weeks prior to my resignation.
Immediately after the management meeting I. began to function as the Corporate RSO.
In that capacity I"was in frequent telephone contact with Mr.'
and kept him advised as to what I was doing to correct some of the many problems we had at NPI.
In the many discussions I had with him, he never.
stated or indicated to me that his interest in or ' discussions of NPI were not t
related to his official capacity as.an NRC employee.
i 0n at least ten occasions, in phone contact with me,j
. led me to believe he was dealing with me in his function as the 15tC supervisor dealing with fiuclear Pharmacy and he elicited information from me based oh that relation-ship. While he. never said he was asking for information in his official NRC capacity, I assumed a public employee, was is charged with preventing a conflict i
of interest under 10 CFR, would feel obligated to inform me if he was dealing l
with me in a capacity other than that in which he was introduced.
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i If 1 had been aware of his negotiations and possible employment with NPI, the nature ano content of my discussions with Mr.l'T",
y.:a' would have been 1-a considerably different.
MydiscussionswithMr.{
- twere based, for my part, on the fact that I felt that Nuclear Pharmacy wanted to establish a viable radiation safety program and th'at the only way that we could do it, due to the gross condition or non-existence of the program, was that if I could make the appropriate' official in the !!RC aware that after many months of -
problems, NPI now had an individual there who was actively working to establish an effective radiation safety p,rogram, that they would be willing to. allow us a time period to prove that, rather than continue an aggressive enforcement 1.
policy at that-time.
Mr. !
-did represent to me that, yes, as long as I kept him informed of our progress they would find that satisfactory and-probably find it unnecessary to hdid an immediate reinspection of the facility.
In other words, if I kept in touch-with him concerning what-steps were'being taken to improve the radiological safety program at NPI, we probably wouldn't
-be reinspected in the near future.
When Mr.
]spoketomeonthe
~
i
. phone,r I.do not recall any time when he made the staterrent to me that I am now l
functioning in my role as an NRC supervisory inspector, however, he allowed me l
l to report to him in that capacity and deal with him in that capacity.
s About two weeks prior to actually coming to NPI as an employee, Mr.{
~
j revealed his true status to me.
Prior to his starting employment at NPI, he L
visited me at the facility when it was known to me that he was " wearing two hats." We spent about an hour together during which time I gave him detailed information as to the status of NPI's program, including what I felt were
- violations of their license commitments.
After the initial conversation on
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e the phone, in which he acknowledged his true status, he made the appointment t
to come by for the face-to-face meeting just mentioned.
He apologized for not having let me know in the past, scying it was at NPI's request.
We walked around the lab and I pointed out a number of conditions or practices which I felt to be contrary to or in violation of our NRC license.
For example, the fume hood that we were using for handling Xenon and Iodine -- as we were touring the laboratory facility I poin'ted out all of the problems and discrepancies between the actual case and the license requirements to him.
There's approximately 10 to 12 specific violations associated with that hood, which are listed in my memo of 3/17/80, and I pointed these out to him.
I told him that while we had the capability of monitoring iodine, we had no monitoring for the concentrations of Xenon that we were releasing into the environment.
When we toured the waste disposal area, I. mentioned specifics in that the waste disposal bins sometimes become high radiation areas an'd that we did not meet 10 CFR Part 20 requirements for control of the high radiation area. When we passed the generator room, I mentioned something to the effect that one of our commitments to the NRC was that individuals will in fact monitor themselves for contamination upon leaving the room.
I told him'that we were not now and never have done this monitoring because we did not have
~
the capability to do so.
IexplainedhowIwasplanninhtosolvethatproblem.
i i
I also mentioned to Mr.l Ethat NPI was exceeding its possession t_
limits for molybdenum because of its use of the large technetium generators from Union Carbide.
I made no attempt to edit the information I gave him.
In the cowse of that meeting I made him aware of as many violations as I could.
Beyond those I've mentioned I cannot now recall which of the many violations I l
e b
3-made him aware of, but many were pointed out to him.
Another issue which co' es to mind.is the bioassay program, which I discussed with him in great m
detail.
I told him why what they done in the past was insufficient, what I had done as an interim stopoap and the equipment I had ordered so that we could bring the bicassay program into compliance.
.L I subsequently learned thatj and Nunzio DeSantis were aware of the
~
negotiations between Mr. Sanchez and Mr.
.during this whole period.
After each contact with Mr.!
I advised them and Mr. Sanchez of what I
transpired and told them that I thought we were making progress with the NRC.
They never indicated to me thati
, as coming over or told me~what I w
L should or shouldn't say to nim.
I feel therefore that I had been mislead on both fronts, both in NPI and by Mr. ( ~
I felt that I had had numerous contacts with the regulatory agency, with the inspection and enforcement branch, when in fact I had not; I had had contact with a private citizen who happened to work in that area.
WhenMr.f and I decided to resign because of what we felt was a poor attitude or philosophy towards radiation safety by NPI, we submitted a joint letter of resignation to Mr. Sanchez.
The day after we submitted our '
letter, he met with us in Philadelphia and we made him aware that we would honor our 2 week notice.
Mr. Sanchez asked us to take whatever 'ime necessary to prepare a summary report as 'to the radiological safety sit'.ation as we found it and left it.
The memo of 3/17/80 was to have helped smooth the transition for Mr..
'and was, as I indicated, prepared at Mr. Sanchez' request.
Mr.
']and I worked for several days putting it together and 4
(
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,.... ~. -
arrived on Monday with the rough draft and offered it to Mr./
who n
-- vis there on his first day of. employment with NPI.
We offered to go over it with him but he indicated to us that he was not interested in any turnover from the two of us.
His philosophy was not to look at what other people had done or recommended.
He preferred to jump in the middle and start doing thi ngs'.
His attitude that day was somewhat hostile, and in contrast to his meeting with me about two weeks earli~er when he discussed the possibilities of-the radiation safety program and in his words, how NPI "could make us both rich."
I have read the foregoing statement, consisting of 8 handwritten pages.
It was written at my request by Mr. Baci and I have made any necessary correc-tions, and initialed them.
I have signed my name in the margin of each page. _
-This statement is true to.the best of my knowledge and belief..
f
!Ls//
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L SS#i...
-...s Subscribed and sworn to be' fore me this 16th day of May 1,1980 at i
Colchester, Conn.
//s//
l Peter E. Baci NRC Investigator i
//s//
I....
l Witness I
f