4 Pinellas men plead not guilty in federal case related to asbestos

Four men who oversaw an Indian Shores condominium conversion were arrested this morning on federal criminal charges alleging they deliberately flouted environmental laws relating to asbestos removal at the project.

The project manager, James Roger Edwards, has pleaded guilty to being an accessory after the fact to the violations in 2004 at the conversion of the Indian Pass Apartments on Gulf Boulevard into the Barefoot Beach Resort condominiums. The resort had 164 units in six two-story buildings on six acres.

Arrested this morning were John Loder, 43, of Redington Beach; Stephen J. Spencer, 48, of Clearwater; Guy Gannaway, 53, of Safety Harbor, and Keith "Animal" McConnell, 54, of Largo.

All four men pleaded not guilty at their arraignment this afternoon, and were released on bond. Spencer's lawyer, George Tragos, said his client will be exonerated.

"We don't believe he has any responsibility for the acts that are alleged in the indictment."

Loder and Spencer formed Sun Vista Development Corp. to carry out the operations and administrative work associated with the purchase, renovation and resale of the condominium project, according to an indictment unsealed today.Loder was the original manager of Sun Vista and at various times served as president and managing member and president of the Barefoot Beach Resort condominium association. Spencer was the project's architect and was directly responsible for dealing with issues related to asbestos at the project.

Gannaway Builders, co-owned by Guy Gannaway, was the project general contractor. McConnell was a Gannaway employee and served as the project superintendent.

After asbestos was found in the popcorn texture in the ceilings of the units, Loder, Spencer, Gannaway and others decided in December 2004 that complete and proper removal of the ceilings was too expensive, according to the indictment. They rejected a $300,000 bid for the work.

Spencer proposed covering the ceilings with drywall attached with furring strips, requiring the asbestos to be drilled into, according to the indictment. The indictment says Loder, Gannaway and McConnell agreed to use Spencer's method.

Workers were instructed to cover the asbestos with little or no protective equipment and without adhering to recommended procedures, according to the indictment. The technique used to cover the ceilings actually disturbed the asbestos, according to court papers.

The four men arrested today are charged with conspiring to violate the Clean Air Act by failing to remove asbestos before the material would be broken up, dislodged or disturbed and without at least one on-site expert in the removal of the material. They are also accused of making false statements to authorities to cover up the scheme.

Federal inspectors were tipped off that workers were being exposed to asbestos, and visited the site the following month, according to Edwards' plea agreement. Inspectors found several violations.