In the latest of Laidlaw's woes, U.S. authorities have indicted the Canadian bus and waste management company on a charge of conspiring to avoid taxes on 39 school buses.

The charge involves Laidlaw Educational Services, a division of Laidlaw Inc., and two of its employees.

One of them, Emory Haselden, was charged with conspiracy and making a false statement to the South Carolina Tax Commission. As a former school administrator, Haselden signed documents showing Laidlaw bought the 39 buses from the school district. This allowed Laidlaw to save $52,000 US in sales and property taxes.

Laidlaw, based in Burlington, Ont., says it had no criminal intent and the move was made by the school district for its own gain. A spokesperson says the matter should have been settled in a civil court.

The charges come from a year-long investigation by a Charleston prosecutor and the tax commission.

The school district is also suing Laidlaw, saying the company overcharged the district $1.4 million over two years it was on contract.

If convicted of conspiracy, the defendants face a maximum five-year sentence and a $10,000 fine.

Laidlaw has been beleaguered by problems this year. It recorded a second-quarter $1.46-billion loss. And U.S. securities regulators are investigating accounting irregularities at Safety-Kleen Corp., in which Laidlaw holds a 44-per-cent interest.

Laidlaw slipped 12 cents to close at 95 cents Wednesday on the TSE. In recent years, Laidlaw has traded as high as $20.