Protecting People and the EnvironmentUNITED STATES NUCLEAR REGULATORY COMMISSION
UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS
WASHINGTON, D.C. 20555
May 8, 1992
NRC INFORMATION NOTICE 92-37: IMPLEMENTATION OF THE DELIBERATE
MISCONDUCT RULE
Addressees
All Nuclear Regulatory Commission Materials Licensees
Purpose
The U.S. Nuclear Regulatory Commission is issuing this notice to describe to
licensees a recent enforcement action and to alert licensees and their
employees that, under the Deliberate Misconduct Rule, they can be subject to
criminal prosecution and penalties for deliberately violating or causing a
licensee to violate NRC requirements, or deliberately submitting to the NRC,
a licensee or its contractor, information that is materially incomplete or
inaccurate. It is expected that recipients will review this notice,
distribute it to responsible staff, and consider actions, as appropriate, to
ensure compliance with NRC requirements. However, suggestions contained in
this information notice are not new NRC requirements; therefore no written
response is required.
Description of Circumstances
The Department of Justice recently initiated a prosecution resulting in an
indictment against a licensee and the licensee's president. The licensee's
president pled guilty to conspiring to improperly dispose of three scales
containing nuclear byproduct material and was sentenced to 3 years probation
and fined $30,000. Criminal proceedings involving the licensee's president
are ongoing. These findings were based on an investigation conducted by
NRC's Office of Investigation (OI) which concluded that the scales had been
improperly disposed of through burial and that several individuals may have
conspired to deceive NRC about the disposal of the scales.
The OI investigation followed special inspections conducted by NRC. The
inspections involved several unsuccessful attempts to find three nuclear
weigh scales. Based on the results of these inspections and the subsequent
investigation, NRC determined that certain of the licensees activities were
not conducted in full compliance with NRC requirements as they involved the
unauthorized and improper disposal of licensed material and that certain
individuals had provided inaccurate and misleading information to NRC.
Discussion
NRC requires a high standard of compliance and accountability from
licensees. NRC also requires all licensees to provide NRC with complete and
accurate
9205040270
.
IN 92-37
May 8, 1992
Page 2 of 2
information, and that records required to be kept, and information provided
to the Commission, both oral and written, be accurate and complete in all
material aspects.
Deliberate misconduct, by licensed or unlicensed individuals, resulting in
violations, such as the unauthorized disposal of licensed material,
falsification of records, or false or misleading statements, undermines the
NRC's confidence that these individuals will conduct themselves in a manner
that adequately protects public health and safety, when participating in
future licensed activities. The "Deliberate Misconduct" rule (56 FR 40664)
provides a basis for enforcement action directly against any person,
licensed or unlicensed, who deliberately causes a violation of NRC
requirements or deliberately submits information that is materially
incomplete or inaccurate. Actions against individuals involved in such
violations may include civil penalties, orders to modify, suspend, or revoke
licenses, and orders to the individuals restricting future involvement by
the individual in any licensed activities. The aforementioned case is an
example of a situation where such enforcement actions will be applied, in
future cases, against specific individuals. Furthermore, the NRC intends to
refer to the U.S. Department of Justice for consideration for criminal
prosecution cases involving individuals who deliberately cause a violation
of NRC requirements. Licensees and their employees should refer to the
Deliberate Misconduct rule for a more complete discussion of its scope.
This information notice requires no specific action or written response. If
you have any questions about the information in this notice, please call one
of the technical contacts listed below, or the appropriate regional office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material Safety
and Safeguards
Technical contacts: Jamnes L. Cameron, RIII
(708) 388-5636
Susan L. Greene, NMSS
(301) 504-2686
Attachments:
1. List of Recently Issued NMSS Information Notices
2. List of Recently Issued NRC Information Notices
.
