Miami, FL – A complex scheme to illegally import ozone-depleting refrigerant gas into the United States has resulted in prison time, hefty fines, and forfeiture of over $1.3 million, with the latest sentencing concluding a multi-agency investigation dubbed “Operation Catch-22.” Amador Hernandez, 43, of Miami, was the latest to face justice for his role in the operation, receiving 36 months probation with 6 months of home detention on April 21, 2010.
The investigation, led by the U.S. Environmental Protection Agency (EPA), U.S. Immigration and Customs Enforcement (ICE), and the U.S. Attorney’s Office for the Southern District of Florida, revealed that Kroy Corporation, along with its president James Garrido, smuggled approximately 418,654 kilograms (29,107 cylinders) of HCFC-22, a restricted refrigerant, into the country between March 2007 and April 2009. The illegal refrigerant had a fair market value exceeding $3.9 million.
Operation Catch-22 Uncovers Elaborate Smuggling Ring
Federal authorities discovered that Kroy Corporation and Garrido bypassed import regulations by mislabeling shipments. They routinely declared the HCFC-22 as either the legal refrigerant HFC-134a or as “United States Goods Returned” to evade scrutiny. Shipments contained minimal amounts of legal refrigerant strategically placed at the front to conceal the bulk of the contraband. Crucially, neither Kroy nor Garrido held the necessary consumption allowances required to legally import HCFC-22.
Hernandez’s Role in False Declarations
Amador Hernandez, working as an associate for Kroy and Garrido, played a key role in facilitating the illegal imports. Hernandez completed Customs entry paperwork for four shipments in early 2009, falsely declaring the contents as HFC-134A, HFC-404A, HFC-410, or “United States Goods Return,” when they actually contained predominantly restricted HCFC-22. These false declarations accounted for approximately 82,852 kilograms (5,116 cylinders) of the smuggled refrigerant, valued at over $700,000.
Sentencing and Penalties
James Garrido was sentenced to 30 months’ imprisonment, followed by three years of supervised release, and a $40,000 fine, jointly and severally with Kroy Corporation. Kroy Corporation itself received five years of probation and was also ordered to pay the $40,000 fine. In addition to the criminal penalties, both Garrido and Kroy were ordered to forfeit $1,356,160 to the United States. Hernandez, after pleading guilty, received 36 months probation with 6 months of home detention.
Environmental and Legal Implications
The case highlights the ongoing efforts to combat the illegal trade of ozone-depleting substances, which are regulated under the Clean Air Act. The illegal importation of HCFC-22 undermines the international treaty obligations aimed at phasing out these harmful chemicals and protecting the ozone layer. The defendants violated Title 18 U.S. Criminal Code § 545, specifically the smuggling statute, as well as provisions of the Clean Air Act (Title 42, United States Code, Sections 7413(c)(1) and 7671d). Penalties for smuggling can include imprisonment, fines, and forfeiture of assets.
Key Facts
- Defendant: Amador Hernandez, James Garrido, Kroy Corporation
- Crime: Smuggling of HCFC-22 refrigerant
- Location: Miami, Florida
- Years Active: 2007-2009
- Amount Smuggled: Approximately 418,654 kilograms of HCFC-22
- Fair Market Value: Over $3.9 million
- Penalties: Garrido – 30 months imprisonment, $40,000 fine, $1,356,160 forfeiture. Kroy – 5 years probation, $40,000 fine, $1,356,160 forfeiture. Hernandez – 36 months probation, 6 months home detention.
- Statutes Violated: 18 U.S.C. § 545, Clean Air Act (Title 42, U.S.C. §§ 7413(c)(1) & 7671d)
“The defendants jeopardized the global effort to restore and protect the ozone for their own financial benefit,” stated U.S. Attorney Jeffrey H. Sloman. “Such conduct is short-sighted and inexcusable.” The investigation continues to serve as a warning to those who would attempt to profit from illegal environmental practices.
Source: EPA ECHO Enforcement Case Database
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