Fateh Ulkarim Nader, Smuggling, CA 2006

Santa Ana, CA – A shadowy network trafficking in illegal refrigerant gas has been exposed following a multi-year investigation by federal authorities. Fateh Ulkarim Nader, also known as Mohammed Fateh, owner of Fateh Automotive Wholesale, was sentenced in February 2006 after pleading guilty to charges stemming from a large-scale smuggling operation of chlorofluorocarbons (CFCs), specifically R-12.

The case, originating in October 2003, revealed that Nader supplied contraband R-12 to Steve Lowe, owner of Swedish Asian Auto Parts in Santa Ana. Lowe, operating from his automotive repair shop, then illegally sold the refrigerant to customers. R-12, a potent ozone-depleting substance, was phased out under international agreements, making its import and sale heavily regulated – and highly profitable for those willing to circumvent the law. Undercover operations by investigators were instrumental in tracing the supply chain back to Nader.

The investigation initially focused on Lowe, who was charged with one count of conspiracy (18 U.S.C. 371) and eight counts of smuggling (18 U.S.C. 545) on October 16, 2003. Evidence quickly pointed towards Nader as the source of the illegal refrigerant. Nader was formally charged on January 29, 2004, with one count of conspiracy and two counts of smuggling. The smuggled R-12 was reportedly sourced from outside the United States, evading customs duties and environmental regulations.

The legal proceedings unfolded over the next two years. Lowe ultimately pled guilty to seven of the eight smuggling counts on August 23, 2004, while Nader entered a guilty plea to two counts listed in a superseding indictment on November 21, 2005. The prosecution focused on demonstrating a clear pattern of illegal activity and the financial gain derived from it.

Table of Contents

Toggle

Sentencing and Penalties

On January 13, 2006, Lowe received a 12-month probation sentence, a $700 special assessment fee, and was ordered to pay $28,777 in restitution to U.S. Customs. Nader’s sentencing, delivered on February 24, 2006, was slightly more severe: 24 months probation, a $200 special assessment, $2,508 in restitution to U.S. Customs, and a hefty $9,000 federal fine. While neither defendant received prison time, the financial penalties and criminal records represent a significant consequence for their involvement in the illegal refrigerant trade.

Key Facts

Defendant: Fateh Ulkarim Nader (a.k.a. Mohammed Fateh)
Co-Defendant: Steve Lowe (Swedish Asian Auto Parts)
Location: Santa Ana, California
Crime: Smuggling of Chlorofluorocarbons (R-12)
Statutes Violated: 18 U.S.C. 545 (Smuggling), 18 U.S.C. 371 (Conspiracy)
Penalties: Nader received 24 months probation, $200 assessment, $2,508 restitution, $9,000 fine. Lowe received 12 months probation, $700 assessment, $28,777 restitution.

The case highlights the continued threat of illegal trade in environmentally damaging substances, even after regulations are put in place. Authorities continue to monitor for such activity, aiming to protect both the environment and legitimate businesses.

Source: EPA ECHO Enforcement Case Database

Related Federal Cases