All World Cycles, Inc., Clean Air Fraud, CA 2007

Orange County, CA – All World Cycles, Inc., and its owner, have been penalized for violating federal clean air regulations, according to court documents unsealed this week. The Environmental Protection Agency (EPA) brought the case against the motorcycle manufacturer in 2005, alleging a scheme to evade emissions standards and associated fees.

The investigation revealed that Stone, owner and operator of both Stone’s Custom Motorcycle and All World Cycles, was importing motorcycle parts and assembling them into complete motorcycles. Rather than registering these assembled bikes as “kits,” which would have required different compliance procedures, Stone allegedly marketed and sold them as fully manufactured units. This misrepresentation triggered requirements under the Clean Air Act (CAA), specifically the need for applications for certification of conformity for each model year produced.

Federal prosecutors argued that All World Cycles deliberately failed to submit these crucial applications to the EPA. The company’s actions were viewed as a direct attempt to circumvent environmental regulations designed to limit harmful emissions from motor vehicles. The EPA maintains that proper certification ensures motorcycles meet established air quality standards, protecting public health and the environment.

On May 4th, 2005, Stone was formally charged with obstruction of justice (18 U.S.C. 1512(b)(3)), eleven counts of evading reporting requirements (31 U.S.C. 5324(a)(3)), and two counts of violating the Clean Air Act (42 U.S.C. 7413(c)(2)(A) & 42 U.S.C. 7413(c)(3)). The CAA violations included making false material statements to federal authorities and knowingly failing to pay fees owed to the United States.

After protracted legal proceedings, Stone entered a guilty plea on August 21st, 2006, to the charges relating to the unpaid fees mandated by the CAA. Simultaneously, All World Cycles, Inc. also pled guilty to two counts of violating the Clean Air Act. While the case involved significant allegations of fraudulent activity, the sentencing on December 11th, 2006, proved surprisingly lenient. All World Cycles received 12 months of probation and was ordered to pay a $400 special assessment fee. Stone himself received the same probationary period and a $25 special assessment fee; notably, no fines were imposed.

The relatively light penalties have raised questions among environmental watchdogs, who suggest that the case underscores the need for stricter enforcement and harsher punishments for companies that attempt to skirt environmental regulations. The EPA has not commented on the sentencing, but continues to emphasize its commitment to ensuring compliance with the Clean Air Act and protecting air quality across the nation.

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Key Facts

Defendant: All World Cycles, Inc. and Stone (owner/operator)
Location: Orange County, California
Year: 2007 (charges filed in 2005, sentencing in 2006)
Crime: Clean Air Act violations – failure to certify motorcycles and evade reporting requirements.
Statutes Violated: 18 U.S.C. 1512(b)(3), 31 U.S.C. 5324(a)(3), 42 U.S.C. 7413(c)(2)(A), 42 U.S.C. 7413(c)(3)
Penalties: 12 months probation for both the company and Stone. $400 special assessment fee for the company, $25 for Stone. No fines imposed.

Source: EPA ECHO Enforcement Case Database

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