City adjusts figures in lawsuit against Diamond Brooks due to calibration error on water meter – Yuma Sun: News

slide07The City of Yuma is moving forward with a lawsuit seeking restitution for water it says was stolen by Diamond Brooks, recently filing a document in court to adjust figures due to inaccurate readings on the meter used in the investigation. According to an April 7 filing in Yuma County Superior Court by the City of Yuma Attorney’s Office, the water meter was found to have an approximate 341 percent calibration error and it was disclosing the information to all parties as was required by law. City of Yuma spokesperson Dave Nash said while the error in the meter’s calibration has caused the city to adjust its figures, what it doesn’t change is that Diamond Brooks had an unauthorized connection to a fire suppression line and took water without paying for it. In November 2010, Yuma police began an investigation into the business, located at 3025 S. Avenue 4E, after receiving reports that the company had been stealing water, which it would then process and sell back to the public. It was initially thought that approximately 76.5 million gallons, which equates to a loss of over $168,000, were stolen during the course of the investigation. Nash said that the City of Yuma actually caught the error. He said that the water meter had been placed into evidence in the federal criminal trial against Diamond Brooks owner Philip Clark and that the City was able to retrieve it and have it tested by an independent engineering laboratory. Nash explained that the fire suppression line leading into the Diamond Brooks facility had a lower flow rate than a residential water line, which the water meter had been calibrated for, so when one gallon of water passed through the unauthorized connection fire suppression line, the meter recorded approximately 3.27 gallons. After the calibration error was discovered and the error factor determined, Nash said the City adjusted its figures in the lawsuit accordingly. Based on the new figures, Diamond Brooks allegedly took about 23 million gallons of water through the unauthorized connection to the fire suppression line instead of the 76.5 million gallons originally recorded on the meter during the course of the investigation. Those 22.9 million gallons, Nash said, would amount to $47,343.00 in unpaid water usage. He also said that there is evidence that Diamond Brooks was taking water for 33 months, not just the 19 months that were monitored. Clark, the owner of Yuma’s Diamond Brooks Water Company, who recently entered into a plea agreement with federal prosecutors, is scheduled to be sentenced at 9:30 a.m. on May 12 in U.S. District Court in Phoenix. He had been charged with 18 counts of wire fraud, three counts of stolen property, five counts of money laundering, 12 counts of failure to pay taxes, eight counts of failure to file tax forms, and one count of making false statements. The charges stem from allegations that he failed to pay IRS taxes he collected from his employees, and did not file corporate and individual tax returns for several years. Clark, who remains out of custody while he awaits sentencing, could receive up to five years in prison or a fine of up to $10,000, or both. Probation is also available, and if he is sentenced to probation, the term can be for no more than five years. According to his admission statement contained in the plea agreement, Clark admitted that between Jan. 1, 2001, and Dec. 31, 2009, he failed to pay the IRS $297,234 that he collected from his employees for certain employment-related taxes. He also admits that on Sept. 30, 2011, he failed to pay the IRS more than $31,296 in taxes that had been withheld from employee paychecks.

Source: City adjusts figures in lawsuit against Diamond Brooks due to calibration error on water meter – Yuma Sun: News

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