Two ex-Navy officials are facing federal charges for allegedly attempting to cover up the scale of a major jet fuel spill that occurred in 2021 at the Red Hill Bulk Fuel Storage Facility in Honolulu.
According to Khon 2, the Department of Justice has indicted John Floyd and Nelson Wu for conspiracy and falsifying government information to obscure the size, origin, and consequences of a jet fuel leak that released nearly 20,000 gallons into the environment.
The case stems from a jet fuel spill that occurred on May 6, 2021, during a transfer operation at the Red Hill facility, a massive underground fuel storage site located near Honolulu, Hawaii. A rupture in one of the facility’s pipelines led to the release of approximately 19,000 gallons of fuel into an underground tunnel system.
Authorities say John Floyd, the former Deputy Director of the Fuels Department, and Nelson Wu, a Supervisory Engineer, were involved in producing and submitting a report that significantly downplayed the spill. The official documentation claimed that the total leak impact was around 1,600 gallons—less than one-tenth of what investigators later found had actually spilled. According to the federal indictment, Floyd and Wu allegedly drafted and approved a misleading report that was provided to the Hawaii Department of Health. The agency had demanded full transparency regarding the magnitude of the leak, including its source and timeline.
Indictment Alleges Deliberate Data Suppression
Investigators allege that Floyd and Wu knew the actual size of the leak and purposefully omitted essential data. Specifically, the true origin of the spill—Tank 12—was left out of official records. The report submitted to Hawaiian regulators also failed to account for more than 18,000 gallons of fuel that had leaked into the environment.
Prosecutors claim that the two former Navy employees went beyond just underreporting figures. The indictment states that Floyd and Wu took additional steps to erase and alter records that could reveal the full severity of the event. The edited and incomplete documentation, officials say, was intended to "mislead regulators and hide the severity of the spill." The charges include conspiracy to defraud the United States government as well as submitting false statements to a federal agency. If convicted, both men face a penalty of up to five years in prison and a possible fine of $250,000 for each count brought against them.
Accusations Spark Fallout in Larger Navy Controversy
This legal development arrives amid ongoing scrutiny of the Red Hill facility, which has long been a controversial site due to its proximity to drinking water sources and history of fuel incidents. The 2021 spill added new urgency to calls for better regulation and potential decommissioning of the fuel storage operation. The consequences of the May 2021 event were not limited to environmental assessments. The Red Hill spill ultimately became a contributing factor in a wider contamination crisis that affected thousands living in and around military housing areas in Honolulu. Residents reported health problems and were temporarily displaced as investigations unfolded.
Federal prosecutors say the lack of accurate reporting delayed early intervention and complicated environmental containment efforts. The faulty data undermined the response strategies executed by local and federal health agencies in the aftermath of the leak.
Government Investigation Unveils Concealment Efforts
As investigators dove deeper into the incident, they obtained internal communications and documentation indicating that both men were aware of the true extent of the spill but chose to misrepresent it. Prosecutors said their goal was to deflect regulatory scrutiny and reduce potential penalties or operational disruptions to Navy fuel operations.
The Department of Health’s request for detailed, truthful reporting came shortly after the May 6 spill, but based on the indictment, that appeal was met with manipulated information. The data omission regarding Tank 12 and the erasure of documentation were central elements in building the criminal case. In announcing the charges, a spokesperson for the office of the U.S. Attorney said, “The charges allege a deliberate effort to mislead regulators and hide the severity of the spill.” The statement did not elaborate on whether additional individuals might face charges in the future.
Criminal Trial Could Test Navy Accountability
As the case moves forward, the court will determine whether Floyd and Wu intentionally compromised governmental transparency. Their defense strategies have not yet been disclosed, and no legal representatives have commented publicly about the charges. The indictment could set a precedent for how future incidents involving environmental spills on military property are handled. Observers note that the Red Hill situation may influence policy changes within the Department of Defense and among civilian oversight bodies.
Although the indictment focuses on two individuals, many affected by the spill continue to raise broader concerns about institutional accountability. For those impacted by the water contamination crisis, these charges represent only a partial step toward resolution.
Next Steps in Legal and Environmental Review
A trial date has not yet been set. Both defendants remain presumed innocent until proven guilty in court. The case will be prosecuted in federal court, with potential penalties ranging from imprisonment to significant financial fines.
Hawaii officials, environmental watchdogs, and local communities will likely monitor the developments closely in the weeks ahead. Meanwhile, the Red Hill facility remains under heightened scrutiny as environmental assessments and decontamination efforts continue. The federal government has not specified whether further regulatory oversight changes will be made at fuel storage sites as a result of the Red Hill incident. However, the fallout from the 2021 spill is already reshaping conversations about environmental safety and public trust in military operations.
