Brendan Clery, Smuggling Goods, Florida 2011

Miami resident Brendan Clery was sentenced to 18 months in federal prison for illegally smuggling nearly 278,256 kilograms of a restricted refrigerant gas, HCFC-22, into the United States. The operation, conducted between June and August 2007, involved importing the substance from China without the necessary consumption allowances mandated by the Environmental Protection Agency (EPA).

Clery, 34, established Lateral Investments LLC in 2005 as a vehicle for importing merchandise, including the illicit refrigerant. As president of the corporation, he knowingly circumvented regulations designed to protect the ozone layer and uphold international treaties like the Montreal Protocol. The smuggled HCFC-22, valued at approximately $1,438,270, was intended for sale on the black market, bypassing legitimate supply chains and undermining the EPA’s phasedown schedule for ozone-depleting substances.

Ozone Layer & Regulatory Framework

The EPA enforces regulations under the Clean Air Act (CAA) that govern the production and importation of ozone-depleting substances. These regulations were put in place to meet obligations under the Montreal Protocol, an international environmental treaty. To legally import HCFC-22, importers must possess and expend consumption allowances for each kilogram of the substance. Clery and Lateral Investments never held these allowances, making their actions a clear violation of federal law.

Investigation and Plea

The investigation was a collaborative effort between the EPA’s Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and the Florida Department of Environmental Protection. Clery was initially charged on April 15, 2011, with smuggling goods into the United States, a violation of Title 18 U.S. Criminal Code, specifically 18 U.S.C. §545. He subsequently pleaded guilty on April 26, 2011, before U.S. District Court Judge Adalberto Jordan.

Sentencing and Forfeiture

On July 29, 2011, Judge Jordan sentenced Clery to 18 months of incarceration, followed by 24 months of probation. In addition to the prison sentence, Clery was ordered to pay a $10,000 federal fine and forfeit $935,240 – representing the illicit profits generated from the smuggling operation. The statutory maximum penalty for the crime is 20 years imprisonment and a $250,000 fine, demonstrating the seriousness with which federal authorities treat violations of environmental regulations.

Statements from Authorities

U.S. Attorney Wifredo A. Ferrer emphasized the importance of enforcing laws protecting the environment, while EPA Special Agent in Charge Maureen O’Mara highlighted the public health risks associated with ozone-depleting substances like HCFC-22. Drusilla Hufford, U.S. EPA Stratospheric Protection Division Director, noted the ongoing threat to the ozone layer and the importance of preventing illegal activity. Michael Shea, Deputy Special Agent in Charge of ICE-HSI, underscored the agency’s commitment to protecting national security and economic well-being by combating unlawful importation.

Key Facts

• Defendant: Brendan Clery
• Crime: Illegal Smuggling of HCFC-22 refrigerant
• Location: Florida
• Year: 2011
• Amount Smuggled: Approximately 278,256 kilograms (20,460 cylinders)
• Value: $1,438,270
• Statutes Violated: 18 U.S.C. §545 (Smuggling)
• Penalties: 18 months imprisonment, 24 months probation, $10,000 fine, $935,240 forfeiture

Sources: EPA Press Release, Court Records

Source: EPA ECHO Enforcement Case Database

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