WASHINGTON, June 3 (Reuters) - Research animal breeder

Envigo pleaded guilty to animal welfare and environmental crimes

on Monday, resolving a two-year U.S. Justice Department probe

into its mistreatment of thousands of beagles, a department

official said.

Envigo agreed in federal court in the Western District of

Virginia to pay $22 million in fines, plus an additional $13.5

million to support animal welfare and environmental projects,

cover law enforcement expenses and improve its own facilities.

That includes the largest-ever fine in an animal welfare

case imposed by the Justice Department, $11 million, the U.S.

Attorney for the Western District of Viriginia said.

Envigo made headlines in 2022 when it forfeited some 4,000

beagles, some of which were adopted by celebrities including

Meghan Markle and Prince Harry. It pleaded guilty to one

misdemeanor count of conspiring to violate the Animal Welfare

Act and one felony count of conspiring to violate the Clean

Water Act, after it refused to fix its wastewater treatment

equipment and allowed excess animal feces to be discharged into

a nearby creek.

The company is also required to retain an independent

corporate monitor, and to make a statement expressing

contrition.

Envigo, which was acquired by Inotiv ( NOTV ) in November

2021, is one of the leading suppliers of animals for medical

research in the United States. Its clients include major

pharmaceutical companies, universities and the federal

government.

The guilty plea over the Clean Water Act violation could

lead the Environmental Protection Agency to debar Envigo as a

federal contractor.

Federal investigators in May 2022 executed a search warrant

at Envigo's facility in Cumberland, Virginia amid concerns about

its mistreatment of thousands of beagles.

The seizure of the beagles came after inspectors with the

U.S. Department of Agriculture's Animal and Plant Health

Inspection Service repeatedly documented dozens of violations at

Envigo in 2021 and 2022.

Problems included dangerous flooring, failing to provide

veterinary care, unsanitary conditions, euthanizing dogs without

anesthesia, under-feeding mothers nursing puppies and failing to

document the cause of death for hundreds of puppies.

In court filings, prosecutors said on Monday that the

company refused to fire a veterinarian referred to only as "AV,"

despite repeated complaints by employees - including concerns

that AV mishandled the surgeries of five dogs.

"Staff rejection of AV's authority paired with AV's

inadequate veterinary skills led to multiple additional improper

and inadequate veterinary practices at the Cumberland Facility,"

prosecutors wrote in the charging documents.

The company ceased operations at the Cumberland facility on

Jan. 24 and is no longer breeding or selling dogs.

The veterinarian resigned from the company in April 2022,

according to the court filings.

Prosecutors also said the company conspired with others to

avoid spending money to upgrade its wastewater system, while it

continued to breed and sell beagles despite being unable to

manage the waste disposal.

The Justice Department previously subpoenaed U.S. Department

of Agriculture inspectors and managers to appear before a grand

jury to question them about why the agency took no enforcement

action against Envigo despite the history of violations.

Two of the top managers who oversaw the inspections have

since left the USDA and no one from the agency has been charged

with wrongdoing.