Mystic Tanks Lines Corp, Astoria NY, remains fully operational and is conducting deliveries, according to information from Jack McNamara of Mystic August 2.
McNamara responded after Bulk Transporter contacted the company for information about the distributor's current status. "Unfortunately due to the inaccurate and distorted stories reported in the press, there is considerable confusion as to the current status with Mystic Tank Lines Corp," McNamara said in an e-mail to Bulk Transporter. "Please note that the allegations reported are directed towards possible improprieties associated with NYC (New York City) heating oil deliveries. These deliveries were handled by a separate company, which is a subsidiary of Mystic Tank Lines; and the parent company Mystic Tank Lines Corp is still fully operational. Mystic Tank Lines provides bulk delivery service of heating oils, diesel fuels, ethanol, gasoline, jet fuel, aviation gas, liquid asphalt, and dry bulk cement. We have the full support of our valued customers, employees, and financial institutions."
On August 1, Leonard Baldari Jr, owner of Mystic Tank Lines Corp, Astoria NY, was released on $20-million bond after being charged with theft of tens of thousands of gallons of fuel oil, according to information August 2 from the US Attorney's office in Manhattan.
Also released on $20-million bond was Tontino Solimine, owner of T&S Trucking Corp, Brooklyn NY, who was charged with similar thefts, according to the US Attorney's information.
Michael David Hiller, Mystic Oil treasurer, was released under a $10-million bond while an employee of T&S Trucking, Eston Clare, also was freed on $10-million bond, according to the US Attorney's office. The men were released after a hearing August 1.
News reports indicated that Mystic Tank Lines trucks would undergo inspections and that T&S Trucking would be shut down.
The indictments allege that Baldari and Hiller, beginning as early as 1990, and Solimine and Clare, beginning as early as 2000, stole heating oil by directing their truck drivers to hold back portions of oil from retail customers, who were fraudulently billed for a full delivery. The defendants allegedly then sold the stolen oil to other oil retailers, primarily for cash payments, according to information from the US Attorney's office July 19.
The indictments charge that Baldari and Hiller received approximately $50 million from the sale of stolen heating oil, and Solimine and Clare received approximately $25 million, according to the US Attorney's information.
The defendants face penalties, if convicted, of maximum prison sentences of 30 years and fines equal to twice their pecuniary (financial) gains. The indictments also seek $72 million in forfeiture, according to the information.