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Employee guilty in filing of false report

A Greka Energy employee was convicted Friday of filing a false report with a government agency, days before he was to stand trial on felony charges.

Air-quality control engineer Ramzi Chaabane pleaded no contest in Superior Court in Santa Maria to allegations that he provided false information to the Santa Barbara County Air Pollution Control District - an agency that regulates Greka - about a large engine operated at the company's oil and gas lease east of Los Alamos.

Judge Timothy Staffel sentenced Chaabane, of Santa Maria, to three years probation and 30 days in County Jail. However, the judge noted Chaabane could likely swap community service for custody time.

Prosecutors dropped two counts of felony perjury as a condition of the plea. The settlement marked the end of a complex case that had Chaabane facing deportation and possibly prison.

Chaabane, 38, claimed in a 2003 written statement to the APCD that the engine, powering a compressor on the property, was the same one approved earlier by the regulatory agency. He also said the engine was not operated after an APCD-mandated shut-off point of Nov. 8, 2002.

Prosecutors believe Chaabane knew an engine APCD earlier approved was switched for one that was not approved - to save money - and that he was aware the engine ran after the deadline.

“Our theory of the case was that he was extremely pressured by his employer,” said Deputy District Attorney Jerry Lulejian. “There was a lot of pressure to do what it takes to get the job done.”

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Greka in the past has declined comment on legal matters. Calls to the company Friday were not returned. Chaabane's attorney, Michael Scott, denied his client felt pressured by Greka. He said Chaabane was a “paper pusher” who made an honest mistake.

“From day one, Mr. Chaabane said, ‘I didn't know it was false,'” Scott said.

Chaabane opted to settle the case because a felony conviction would have guaranteed his deportation, Scott said. Chaabane, a Lebanese national who is in the country on a work permit, hopes to gain U.S. citizenship.

Though a misdemeanor conviction is a mark against him, Scott surmised Chaabane, who has an otherwise spotless work and criminal history, would be allowed to stay in the U.S.

Chaabane declined comment Friday.

The judge expressed dismay that the case was settled so soon before Chaabane's scheduled Monday trial on the perjury charges.

“Friday before a Monday is not the time to resolve cases like this,” said Staffel, referring to the complex nature of the charges.

Chaabane was also named in a civil lawsuit county prosecutors filed against Greka. Greka settled the controversy surrounding the engine by agreeing to pay the APCD about $185,000, Lulejian said.

All but seven of 107 causes of action in the massive civil suit against Greka have settled, at a cost to Greka of about $600,000, Lulejian said.

The remaining allegations are set for trial June 26.

The U.S. Attorney's office last year also revealed it was investigating Greka. Spokesman Thom Mrozek declined comment Friday on the progress of that investigation.

Greka Energy has onshore oil and gas facilities in Cat Canyon, east of Orcutt, and the Zaca Oil Field east of Los Alamos, and west of Santa Maria, as well as throughout Santa Barbara County.

About 100 local people work for the company.

Quintin Cushner can be reached at 739-2217 or qcushner@ lompocrecord.com.

April 9, 2006


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