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Mountain View News Saturday, November 18, 2023
TWO CORPORATE EXECUTIVES FOUND GUILTY
IN FIRST-EVER CRIMINAL PROSECUTION FOR
FAILURE TO REPORT UNDER CONSUMER
PRODUCT SAFETY ACT
LOS ANGELES – A jury has found two corporate executives guilty of federal criminal
charges related to the distribution and sale of defective residential dehumidifiers
linked to multiple fires in the first corporate criminal enforcement action ever
brought under the Consumer Product Safety Act (CPSA), the Justice Department
announced today.
Simon Chu, 68, of Chino Hills, and Charley Loh, 65, of Arcadia, were found
guilty on Thursday afternoon of one count of conspiracy to defraud the United States
Consumer Product Safety Commission (CPSC) and one count of failure to furnish
information as required by the CPSA.
The defective dehumidifiers sold by Chu’s and Loh’s 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. 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. The most recent recall
announcements for the Gree Zhuhai dehumidifiers can be found here and here.
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. Loh was part owner and CEO of the same
two corporations.
The CPSA requires manufacturers, importers and distributors of consumer
products to report “immediately” to the CPSC information that reasonably supports
the conclusion that a product contains a defect that could create a substantial product
hazard or creates an unreasonable risk of serious injury or death. This duty also applies
to the individual directors, officers, and agents of those companies.
As early as September 2012, Chu, Loh and their companies received multiple reports
that their Chinese dehumidifiers were defective, dangerous and could catch
fire. They also knew that they were required to report this product safety information
to the CPSC immediately. 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’ defects and hazards for at least six months
while they continued to sell their products to retailers, for resale to consumers.
“It is critical to hold corporate executives accountable for misconduct,” said U.S.
Attorney Martin Estrada. “The 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.”
“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,” said Principal Deputy Assistant Attorney General
Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice
Department will prosecute companies and their employees when they willfully put
the public in harm’s way by failing to report known dangerous products.”
“The safety of the American public is the top priority for HSI, and products like
these can turn an ordinary purchase into deadly consequences.” said Special Agent
in Charge Eddy Wang for Homeland Security Investigations Los Angeles. “HSI Los
Angeles will continue to work diligently to ensure our supply chain is safe from products
that can harm consumers.”
The jury acquitted both defendants of one count of wire fraud.
United States District Judge Dale S. Fischer scheduled a March 11, 2024 sentencing
hearing, at which time Chu and Loh will face a statutory maximum sentence
of five years in federal prison for each of the conspiracy and the failure to furnish
information counts.
Gree USA was sentenced on April 24 to pay a $500,000 criminal fine after pleading
guilty to failing to notify the CPSC about the problems with the dehumidifiers.
The fine, along with provisions to pay restitution to victims, was 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.
Homeland Security Investigations investigated this matter.
Assistant United States 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’s Consumer Protection Branch are
prosecuting this case, with the assistance of Patricia Vieira of the CPSC’s Office of
General Counsel.
THANKSGIVING PART 2
Quite a stir last week in Sierra Madre when I excluded Chardonnay for any Thanksgiving Day consideration,
so I sharpened my pencil and made some edits and surprised myself with a few recommendations
for Turkey Day.
I meant no disrespect with last week’s column, excluding chardonnay from my Thanksgiving selections
for top picks. So, here is my make good with three go-to Chardonnays
First, a brief history of Chardonnay. Most good coastal chardonnay comes from a few areas that you
might be familiar with: Anderson Valley, Santa Maria Valley, and Santa Rita Hills, and the coolest section
of the Russian River Valley. Carneros is also ocean-influenced, though it's warmer there, since it's a
bit inland. Chardonnays from vineyards on the mountain ridges at the edge of the Sonoma Coast AVA
are some of the best in the state. Here are three Chardonnays that I found “reliable” and all under $20:
Francis Ford Coppola’s Diamond Collection Chardonnay - awarded Best in Class, it is bright and balanced.
If you like your wine with a bit of fruity apple/pear flavor, this would be a good choice. This
Chardonnay hails from the Monterey region.
Dills Score 89
Retail $16; you can find it if you shop around for $13 Vons /Albertson’s
St Francis Chardonnay - Chardonnay from the Santa Rosa Sonoma region. I found this to be crisp and
delightful, and it goes well with the other white meat, pork.
Dills Score 89
Retail $17; easily available in So Cal for $15 Vons
Our friends in France enjoy a 2018 Jadot Pouilly Fuisse made with 100% Chardonnay grapes. While we
tend to label California wines as “buttery”, I’d go with “crisp”. Interesting wine maker notes, one part of
the wine is fermented in stainless steel vats and in oak barrels, this combination delivers a silky smooth
finish. Pouilly Fuisse is a great representation of old world wine making. $21.99 average price Vons
ALL THINGS By Jeff Brown
THE NEAR FUTURE OF VACCINES
Here are some general directions in which vaccine development and technology is heading:
mRNA Vaccines: The success of mRNA vaccines, such as those developed for COVID-19 by Pfizer-BioNTech and
Moderna, has opened new avenues. mRNA technology allows for the rapid development of vaccines, and researchers
are exploring its ap-plication for other infectious diseases and even cancer.
Microarray Patches
They are coin-sized patches covered either with tiny needles coated in dry vaccine that painlessly penetrate the skin
or a formula that dissolves when the patch is pressed onto the skin for 2-5 minutes. These patches don’t require cold
temperatures, weigh significantly less than vials requiring needles and syringes, don’t require any mixing, and can
be given by un-trained community health workers in almost any conditions.
Malaria Vaccine-Two vaccines are now showing promise, however: RTS,S and R21/Matrix-M, both of which target
a specific protein on the malaria parasite.
Nanoparticle Vaccines: Nanoparticle based vaccines were being researched for their potential to elicit a robust immune
response. These vaccines use tiny particles to mimic the structure of viruses, enhancing their effectiveness.
Universal Vaccines: Efforts are being made to develop universal vaccines that could provide broad protection
against multiple strains of a virus. This approach is particularly relevant for rapidly evolving viruses like influenza.
Nasal Vaccines: Nasal vaccines, like the nasal spray version of the COVID-19 vaccine Covaxin, are being explored
for their potential to induce mucosal immunity and provide a more convenient method of administration.
Therapeutic Vaccines: Beyond prevention, researchers are investigating vaccines as potential treatments for chronic
diseases and cancers. These therapeutic vaccines aim to stimulate the immune system to target and eliminate specific
cells associated with diseases.
Enhanced Vaccine Distribution and Storage: Advances in vaccine distribution and storage technologies are crucial
for ensuring that vaccines reached remote or challenging locations. This included innovations in cold chain logistics
and the development of vaccines that are more stable at higher temperatures.
Personalized Vaccines: Advances in genomics and immunology may contribute to the development of personalized
vaccines tailored to an individual's genetic makeup and immune profile. This could enhance vaccine efficacy and
reduce the risk of ad-verse reactions.
Adjuvant Technologies: Adjuvants, substances added to vaccines to enhance the immune response, are under investigation
to improve vaccine effectiveness, especially in vulnerable populations like the elderly.
–
SnowFestivalSnow Play Areas | Sled Run | Crafts
Train Rides | Holiday MusicUgly Sweater Contest at 10:30am, 12pm & 1:30pmFree parking shuttle service at the
Arcadia Performing Arts Center entrance on the cornerof Campus Dr El Monte Ave beginning at 7:45am&
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Saturday, December 29am - 2pmArcadia Community Center, 365 Campus Dr.
Arcadia Recreation & Community Services626.574.5113 | ArcadiaCA.gov/eventsFree
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