Residents in Texas City claimed septic trucks have been running hoses beneath a fence and dumping what they believe is raw sewage onto nearby properties.
City officials question whether using $30 million in flood relief funds for building demolitions is legal.
Investigators said the man was allowing used oil from his business to spill into Buffalo Bayou.
A 13 Investigates analysis of 311 data shows 92% of illegal dumping calls are for problems in zip codes where the majority of residents are minorities, according to census data.
Court documents show investigators say the man admitted to the dumping, even allegedly saying it took several weeks to dig the hole, which is about the size of a small bedroom or storage unit.
One neighbor told ABC13 they have tried to get answers from the city on when they can pick this up, but so far, there has been no action.