{"id":54744,"date":"2023-11-17T18:15:31","date_gmt":"2023-11-18T02:15:31","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=54744"},"modified":"2023-11-17T18:39:40","modified_gmt":"2023-11-18T02:39:40","slug":"two-corporate-executives-guilty-of-selling-defective-chinese-made-dehumidifiers-linked-to-more-than-450-fires","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=54744","title":{"rendered":"Two Corporate Executives Guilty of Selling Defective Chinese-Made Dehumidifiers linked to More Than 450 Fires"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES<\/strong><\/span><\/p>\n

\"\"A jury found two corporate executives guilty of federal criminal charges related to selling defective Chinese-made residential dehumidifiers linked to more than 450 fires.<\/span><\/p>\n

This case represents the first corporate criminal enforcement action ever brought under the Consumer Product Safety Act (CPSA), the Justice Department announced today.<\/span><\/p>\n

Simon Chu, 68, of Chino Hills, and Charley Loh, 65, of Arcadia, were found guilty on Thursday of one count of conspiracy to defraud the U.S.Consumer Product Safety Commission (CPSC) and one count of failure to furnish information as required by the CPSA.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \"brown The defective dehumidifiers sold by Chu\u2019s and Loh\u2019s two corporations were included in multiple recalls of a larger number of defective dehumidifiers manufactured by Gree Electric Appliances Inc. of Zhuhai (Gree Zhuhai) in China.<\/a> <\/span><\/p>\n

Recall notes stated that more than 450 reported fires and millions of dollars in property damage have been linked to the recalled Gree Zhuhai dehumidifiers. <\/span><\/p>\n

The most recent recall announcements for the Gree Zhuhai dehumidifiers are here<\/a>\u00a0and\u00a0here<\/a>.<\/span><\/p>\n

According to evidence presented at a six-day trial, Chu was part owner and chief administrative officer of Gree USA Inc. and another corporation in the City of Industry that distributed and sold to retailers for consumer purchase dehumidifiers that were made by Gree Zhuhai in China. <\/span><\/p>\n

Loh was the owner and CEO of the same two corporations.<\/span><\/p>\n

\"brownThe CPSA requires manufacturers, importers, and distributors of consumer products to report \u201cimmediately\u201d to the CPSC information that a product contains a defect that could create a substantial product hazard or create an unreasonable risk of serious injury or death. <\/span><\/p>\n

As early as September 2012, Chu, Loh and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous and could catch fire. <\/span><\/p>\n

They also knew they must report this product’s safety information to the CPSC immediately. <\/span><\/p>\n

\"\"
Damage from a fire caused by a recalled dehumidifier.Consumer Product Safety Commission<\/figcaption><\/figure>\n

Despite their knowledge of consumer complaints of dehumidifier fires and test results showing defects in the dehumidifiers, Chu and Loh failed to disclose their dehumidifiers\u2019 defects and hazards for at least six months while they continued to sell their products to retailers for resale to consumers.<\/span><\/p>\n

“It is critical to hold corporate executives accountable for misconduct,\u201d said U.S. Attorney Martin Estrada. \u201cThe importation and sale of defective consumer products can lead to injury and death, and this verdict sends a clear message that putting profits over safety will not be tolerated.\u201d<\/span><\/p>\n

\"\"“Companies and their employees should immediately report known dangerous consumer products to the Consumer Product Safety Commission so the products can be recalled as soon as possible,\u201d said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department\u2019s Civil Division. \u201cThe Justice Department will prosecute companies and their employees when they willfully put the public in harm\u2019s way by failing to report known dangerous products.\u201d<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The jury acquitted both defendants of one count of wire fraud.<\/span><\/p>\n

U.S. District Judge Dale S. Fischer scheduled a March 11 sentencing hearing. At that time, Chu and Loh will face a statutory maximum sentence of five years in federal prison for each conspiracy and the failure to furnish information counts.<\/span><\/p>\n

Gree USA was sentenced on April 24<\/a>\u00a0to pay a $500,000 criminal fine after pleading guilty to failing to notify the CPSC about the problems with the dehumidifiers. <\/span><\/p>\n

The fine and provisions to pay restitution to victims were part of a $91 million criminal resolution with Gree USA, Gree Zhuhai, and another related Gree company, Hong Kong Gree Electric Appliances Sales Co. Ltd.<\/span><\/p>\n

Homeland Security Investigations investigated this matter.<\/span><\/p>\n

Assistant U.S. Attorney Joseph O. Johns of the Environmental Crimes and Consumer Protection Section and Trial Attorneys Speare Hodges, Natalie Sanders, and Stephen Gripkey of the Civil Division\u2019s Consumer Protection Branch are prosecuting this case.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES A jury found two corporate executives guilty of federal criminal charges related to selling defective Chinese-made residential dehumidifiers linked to more than 450 fires. This case represents the first corporate…<\/p>\n","protected":false},"author":1,"featured_media":54745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-54744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nTwo Corporate Executives Guilty of Selling Defective Chinese-Made Dehumidifiers linked to More Than 450 Fires<\/title>\n<meta name=\"description\" content=\"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES A jury found two corporate executives guilty of federal criminal charges related to selling defective Chinese-made residential\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cjnotebook.com\/?p=54744\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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