Miami, FL – Harp USA, Inc., a Florida-based subsidiary of a UK refrigerant gas supplier, has been sentenced for defrauding the Environmental Protection Agency (EPA) in a scheme to illegally import ozone-depleting substances. The company pleaded guilty to one count of violating Title 18 U.S. Criminal Code, Section 542, relating to the entry of goods by false statements.
According to court documents, Harp USA attempted to import approximately 25,497 kilograms of HCFC-22, a widely used refrigerant, in July 2010. The company submitted a petition to the EPA falsely claiming a single source for the gas. The EPA routinely denies petitions from facilities with multiple sources due to difficulties in verifying if the product is newly produced or recycled, a critical factor in regulating ozone-depleting substances under the Clean Air Act.
Federal investigators found Harp USA also misrepresented the capacity of its source equipment, claiming a capacity exceeding 250,000 kilograms when the actual capacity was only 1,400 kilograms (spread across two tanks). This deliberate misrepresentation was intended to circumvent EPA regulations and facilitate the illegal importation of the refrigerant. The scheme aimed to profit from the sale of HCFC-22, despite knowing it could harm the environment.
Penalties and Forfeiture
On February 11, 2011, U.S. District Judge Jose E. Martinez sentenced Harp USA to three years of probation and a $206,140 criminal fine. In addition to the fine, the company was ordered to pay $25,000 to the Southern Environmental Enforcement Training Fund as community service. A further $206,140, representing the proceeds gained from the fraudulent activity, was ordered to be forfeited to the United States government.
Federal Response
“The U.S. Attorney’s Office is committed to enforcing federal laws that seek to protect our safety and environment,” stated U.S. Attorney Wifredo Ferrer. Maureen O’Mara, Special Agent in Charge of EPA’s Criminal Investigation Division, emphasized the severity of the offense, noting that illegally imported ozone-depleting substances contribute to the thinning of the ozone layer, increasing the risk of skin cancer and cataracts. ICE Homeland Security Investigations also participated in the investigation, highlighting the broader national security implications of illegal imports.
The Bigger Picture
This case underscores the ongoing efforts to enforce the Montreal Protocol, an international treaty designed to protect the ozone layer. While significant progress has been made in phasing out ozone-depleting substances, illegal importation continues to pose a threat. The EPA and its partner agencies remain vigilant in detecting and prosecuting such violations to safeguard public health and the environment. Drusilla Hufford, U.S. EPA Stratospheric Protection Division Director, stated that preventing illegal profits from these chemicals is vital to protecting both Americans and the ozone layer.
Key Facts
- Defendant: Harp USA, Inc.
- Crime: Entry of goods by false statements (18 U.S.C. 542)
- State: Florida
- Year: 2011
- Substance Involved: HCFC-22 (Hydrochlorofluorocarbon-22), an ozone-depleting refrigerant
- False Claims: Misrepresentation of a single source for HCFC-22 and inflated source equipment capacity.
- Penalties: 3 years probation, $206,140 fine, $25,000 community service payment, $206,140 forfeiture.
Source: EPA ECHO Enforcement Case Database
Related Federal Cases
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime