The Department of Environmental Quality (DEQ) is suing a Billings, Montana hotel owner for ignoring fines issued to him for violating asbestos laws during work on a condominium project that is now under foreclosure in the town of Livingston.

According to an Associated Press article, the DEQ filed the lawsuit earlier this week, alleging work at the Guest House hotel violated six asbestos laws during renovation work that took place from July 2006 through February 2007.

The owner of the hotel, Hassan Kangarloo, who is a well-known San Francisco developer, was fined $64,000 in January 2007 for failing to have an asbestos inspection, an asbestos permit, hire an accredited asbestos contractor and failing to follow proper asbestos work practices.

Kangarloo claims he was not familiar with Montana asbestos laws and didn’t realize he was doing anything illegal. The DEQ says he never responded to the violation letter and will, therefore, face an escalated penalty.

According to the article, court documents charge Kargarloo with five violations over 133 days and one violation for one day. If a judge rules in favor of the DEQ, the Guest House owner would be fined up to $25,000 per violation per day for a total of more than $6 million, a spokesman for the DEQ explained.

Records show that Kangarloo has also defaulted on a $540,000 loan from a Livingston investment company and the Guest House property has numerous liens against it. The building is scheduled to be auctioned on April 10.

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