11 hours ago
LA County executives sentenced for faulty dehumidifiers linked to more than 450 fires, DOJ says
Two men from LA County have been sentenced to more than three years in federal prison for defective dehumidifiers linked to hundreds of fires.
Simon Chu, 70, and Charley Loh, 67, were corporate executives for Gree USA, according to the Department of Justice. Federal prosecutors said the two men received multiple reports that the dehumidifiers manufactured by their counterparts in China were defective and could catch on fire in September 2012, but did not notify the U.S. Consumer Product Safety Commission. They continued to sell the humidifiers for at least six months before sending the report to the CPSC, according to the DOJ.
Federal prosecutors said that recall notes stated that the dehumidifiers were linked to more than 450 fires and millions of dollars of property damage.
"Corporate executives who choose to ignore the law will be held accountable – especially when death and serious injuries result," United States Attorney Bill Essayli said. "By putting profits over the safety of others, these defendants created serious risks to consumers, and we will continue to prosecute those who endanger the public."
Chu was sentenced to 38 months in federal prison and fined $5,000. Loh was sentenced to 40 months in federal prison and fined $12,000.
Their company, Gree USA, was fined $500,000. Gree USA, its counterparts Gree Zhuhai and Hong Kong Gree Electric Appliances Sales Co. Ltd, were ordered to pay victims $91 million as part of a criminal resolution, according to the DOJ.
"These Chinese-made products were hazardous, and the defendants knew it," said CPSC Acting Chairman Peter Feldman.
