Hawaii Man Pleads Guilty to Violating the Atomic Energy Act

HONOLULU - Mark Kazee, 60, of Hawaii, pleaded guilty today to violating the Atomic Energy Act by transferring equipment containing Nuclear Regulatory Commission (NRC)-regulated radioactive material from a company he was employed by, which held an NRC required license for the material, to another company without making a record of such transfer as required. Kazee was part owner of the second company, which did not have a license from the NRC.

According to court documents, Kazee worked in the materials and equipment testing industry for over 30 years, serving both as an inspector and as a supervisor of inspectors who used industrial radiography. Industrial radiography is the process of using a radiation source and a specialized camera to examine materials below the surface to check for flaws. Industrial radiography can emit Xrays, gamma rays and neutrons. Kazee worked for the first company starting in 2016 as its regional manager in Hawaii. Kazee's employer had contracts to conduct testing with various companies in Hawaii, including petroleum refineries.

In September 2018, Kazee and another person created their own company to conduct the same type of testing as Kazee's employer. Kazee's company did not have the required license from the NRC to conduct industrial radiography. Soon after Kazee's employer's contract with a major refinery on Oahu expired in January 2019, Kazee's new company began conducting inspections at the refinery, including industrial radiography, using his old employer's equipment. The equipment contained Iridium-192 and depleted uranium radioactive source material. Although Kazee knew he was required to create and maintain a record for his employer for any transfer of the radiography equipment to any other company or individual who was not his employer, he did not.

"Kazee knew what had to be done to comply with the regulations that protect the public from potential harms arising from the use of radioactive materials, but consciously chose not to follow them," said U.S. Attorney Clare E. Connors for the District of Hawaii. "His failures appropriately have criminal consequences and we will continue to pursue such to protect the community."

"Radiography is an impressive technology, and when it is used with proper safeguards, it increases safety and improves lives," said Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Resources Division. "The Justice Department will vigorously prosecute those like Kazee who would circumvent legal requirements for transfer of radioactive materials and treat radiation safety and security as an afterthought."

"It is crucial that those who use radioactive material for commercial purposes follow the rules to protect the user and the public," said Director Thomas Ashley of the NRC's Office of Investigations. "The NRC does not tolerate willful violations of its requirements and demands that licensees and their employees act with integrity and abide by requirements put in place to ensure they're used safely."

Kazee is scheduled to be sentenced on January 13 before U.S. District Court Judge J. Michael Seabright for the District of Hawaii. Kazee faces a maximum penalty of two years in prison. Judge Seabright will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The NRC's Office of Investigations investigated the case.

Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii and Senior Trial Attorney Kris Dighe of the Environment and Natural Resources Division's Environmental Crimes Section are prosecuting the case.