Economy Cash & Carry Inc., a Texas-based company, has pleaded guilty to a misdemeanor violation of the Plant Protection Act related to the falsification of a required certificate stamp.
The crime, which occurred in March 2006, involved Michael Sayklay, the former vice president of Economy Cash & Carry, falsifying stamps that certified wood pallets were heat-treated to prevent infestation and were suitable for use in international transportation.
Sayklay had hundreds of untreated domestic pallets falsely stamped as if they were treated, saving the time to transfer products between pallets as well as the cost of treatment. However, the falsified stamp Sayklay used was smaller than the legitimate stamp.
The falsified pallets were used to carry products back and forth across the U.S.-Mexican border. Other companies who received the fraudulently stamped pallets from Mexico, sent them to the legitimate stamp owner for repair. The legitimate stamp owner noticed the falsification and notified the government.
A follow-up investigation by the USDA resulted in the seizure of fraudulently stamped pallets at the U.S.-Mexican border. Economy Cash & Carry utilizes wood pallets to transport food products and pharmaceuticals it sells in both the United States and Mexico.
At the hearing, Economy Cash & Carry was sentenced to pay a fine of $22,000. A sentencing date for Sayklay has not been set by the court. The USDA requires the heat treatment of wood pallets used in international transactions to prevent parasites and plant diseases from entering the United States in wood packaging materials.
The investigation was conducted by the USDA. It was prosecuted by the Justice Department’s Environmental Crimes Section, and the U.S. Attorney’s Office for the Western District of Texas.
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Key Facts
- State: Texas
- Category: Environmental Crime
- Source: DOJ Press Release â†â€â€
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