{"id":59090,"date":"2025-06-16T18:50:32","date_gmt":"2025-06-17T01:50:32","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=59090"},"modified":"2025-06-16T18:50:32","modified_gmt":"2025-06-17T01:50:32","slug":"corporate-execs-sentenced-for-hiding-defective-dehumidifiers-linked-to-450-fires","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=59090","title":{"rendered":"Corporate Execs Sentenced for Hiding Defective Dehumidifiers Linked to 450+ Fires"},"content":{"rendered":"<p style=\"text-align: center;\" data-start=\"87\" data-end=\"312\"><span style=\"font-size: 20px;\"><strong data-start=\"87\" data-end=\"104\">LOS ANGELES\u00a0<\/strong><\/span><\/p>\n<p data-start=\"87\" data-end=\"312\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-56038 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/04\/fraud-stockpack-adobe-stock-300x200.jpg\" alt=\"fraud\" width=\"300\" height=\"200\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/04\/fraud-stockpack-adobe-stock-300x200.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/04\/fraud-stockpack-adobe-stock-768x512.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/04\/fraud-stockpack-adobe-stock-850x567.jpg 850w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/04\/fraud-stockpack-adobe-stock.jpg 1000w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Two corporate executives were sentenced to federal prison for failing to report fire-prone, defective dehumidifiers, marking the first-ever criminal enforcement under the Consumer Product Safety Act (CPSA).<\/span><\/p>\n<ul data-start=\"314\" data-end=\"504\">\n<li data-start=\"314\" data-end=\"407\">\n<p data-start=\"316\" data-end=\"407\"><span style=\"font-size: 20px;\"><strong data-start=\"316\" data-end=\"331\">Charley Loh<\/strong>, 67, CEO, was sentenced to <strong data-start=\"359\" data-end=\"372\">40 months<\/strong> in prison and fined <strong data-start=\"393\" data-end=\"404\">$12,000<\/strong>.<\/span><\/p>\n<\/li>\n<li data-start=\"408\" data-end=\"504\">\n<p data-start=\"410\" data-end=\"504\"><span style=\"font-size: 20px;\"><strong data-start=\"410\" data-end=\"423\">Simon Chu<\/strong>, 70, chief administrative officer, received <strong data-start=\"468\" data-end=\"481\">38 months<\/strong> and a <strong data-start=\"488\" data-end=\"498\">$5,000<\/strong> fine.<\/span><\/p>\n<\/li>\n<\/ul>\n<p data-start=\"506\" data-end=\"691\"><span style=\"font-size: 20px;\">A jury convicted both men in November 2023 of <strong data-start=\"552\" data-end=\"577\">conspiracy to defraud<\/strong> the U.S. Consumer Product Safety Commission (CPSC) and <strong data-start=\"633\" data-end=\"670\">failing to report product hazards<\/strong>, as required by law.<\/span><\/p>\n<blockquote data-start=\"693\" data-end=\"794\">\n<p style=\"text-align: center;\" data-start=\"695\" data-end=\"794\">\u201c<span style=\"font-size: 20px;\">Federal law requires companies to report potentially dangerous products to the Consumer Product Safety Commission to help protect consumers from harm,\u201d <strong>said Assistant Attorney General Brett Shumate of the Justice Department\u2019s Civil Division.<\/strong>\u00a0<\/span><\/p>\n<\/blockquote>\n<p data-start=\"796\" data-end=\"1001\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-41105 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-300x300.jpg\" alt=\"West Virginia Woman Took Top Secrets, Committed Kidnapping\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-300x300.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-150x150.jpg 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2.jpg 684w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Loh and Chu ran two U.S.-based companies that sold Chinese-made dehumidifiers manufactured by <strong data-start=\"890\" data-end=\"928\">Gree Electric Appliances of Zhuhai<\/strong>,\u00a0<strong data-start=\"969\" data-end=\"1000\"><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">which were later linked to\u00a0<strong>over 450 fires<\/strong>\u00a0and\u00a0<strong>millions of dollars <\/strong><\/span>in property damage<\/strong>.<\/span><\/p>\n<p data-start=\"1003\" data-end=\"1182\"><span style=\"font-size: 20px;\">Despite receiving test results and fire complaints by <strong data-start=\"1057\" data-end=\"1075\">September 2012<\/strong>, the pair concealed safety defects for <strong data-start=\"1115\" data-end=\"1138\">at least six months<\/strong>, continuing to sell the units to retailers.<\/span><\/p>\n<p data-start=\"1184\" data-end=\"1327\"><span style=\"font-size: 20px;\">Under the CPSA, companies \u2014 and their executives \u2014 must <strong data-start=\"1240\" data-end=\"1262\">immediately report<\/strong> potential hazards to the CPSC. Both men ignored this legal duty.<\/span><\/p>\n<blockquote data-start=\"1329\" data-end=\"1432\">\n<p data-start=\"1331\" data-end=\"1432\"><span style=\"font-size: 20px;\">\u201cThese products were dangerous, and the defendants knew it,\u201d said CPSC Acting Chairman Peter Feldman.<\/span><\/p>\n<\/blockquote>\n<p data-start=\"1434\" data-end=\"1494\"><span style=\"font-size: 20px;\">The jury acquitted both on a separate <strong data-start=\"1472\" data-end=\"1486\">wire fraud<\/strong> charge.<\/span><\/p>\n<p data-start=\"1496\" data-end=\"1676\"><span style=\"font-size: 20px;\">In 2023, Gree USA \u2014 which pleaded guilty \u2014 was fined <strong data-start=\"1549\" data-end=\"1561\">$500,000<\/strong> and agreed to a <strong data-start=\"1578\" data-end=\"1604\">$91 million resolution<\/strong>, including restitution. Homeland Security Investigations led the probe.<\/span><\/p>\n<h3 data-start=\"1678\" data-end=\"1692\"><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>LOS ANGELES\u00a0 Two corporate executives were sentenced to federal prison for failing to report fire-prone, defective dehumidifiers, marking the first-ever criminal enforcement under the Consumer Product Safety Act (CPSA). Charley Loh, 67,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":11623,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-59090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Corporate Execs Sentenced for Hiding Defective Dehumidifiers Linked to 450+ Fires<\/title>\n<meta name=\"description\" content=\"LOS ANGELES\u00a0 Two corporate executives were sentenced to federal prison for failing to report fire-prone, defective dehumidifiers, marking the first-ever\" \/>\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=59090\" \/>\n<meta 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