Raleigh, NC – John Slagel, along with co-conspirators Spade Bailly and Josh Davis, were sentenced in March 2022 after pleading guilty to federal charges related to a long-running scheme to defeat vehicle emissions controls. The trio systematically sold illegal “tuners” and accompanying software, knowingly violating the Clean Air Act and defrauding environmental regulations for nearly a decade.
The scheme, spanning from approximately 2008 to January 2017, centered around Spartan Diesel Technologies and, later, Patriot Systems LLC. These companies obtained devices – commonly referred to as “tuners” – and loaded them with software, or “tunes,” designed to disable emissions control systems in diesel vehicles. While automatic transmission vehicles received pre-loaded tunes, manual transmission owners were directed to download the illegal software themselves. This practice allowed vehicle owners to bypass emissions standards, increasing pollution and potentially impacting public health.
Despite receiving a Notice of Violation from the U.S. Environmental Protection Agency (EPA) in August 2015 and paying a $4,154,805 civil penalty, the companies continued to sell the illegal devices. The operation didn’t stop there. In 2016, Josh Davis, owner of Patriot Systems, LLC, purchased Spartan Diesel Technologies *knowing* of the ongoing EPA investigation. Davis then continued selling the “tunes” and providing service for the illegal devices, effectively laundering the operation through a new business entity.
John Slagel’s company, E-Motion, played a crucial role as a supplier. Slagel knowingly sold tuners and encryption software to both Spartan and Patriot, understanding that his products were integral to the creation of the illegal emissions-defeating devices. This demonstrates a deliberate effort to profit from environmental violations. Following the initial EPA action, Bailly further perpetuated the scheme by forming B2 Enterprises, LLC, as a successor to Patriot, continuing sales and service until December 2018, even after becoming aware of the EPA’s scrutiny in early 2017.
The case highlights a pattern of brazen disregard for environmental regulations and a calculated attempt to circumvent legal oversight for financial gain. Federal prosecutors successfully argued that the defendants conspired to violate the Clean Air Act (42 U.S.C. 7413(c)(2)(C)) and engaged in a conspiracy to commit offenses against the United States (18 U.S.C. 371). The EPA’s continued investigation and subsequent prosecution send a clear message that such actions will not be tolerated.
Key Facts
- Defendants: John Slagel, Spade Bailly, Josh Davis
- Companies Involved: Spartan Diesel Technologies, Patriot Systems LLC, E-Motion, B2 Enterprises LLC
- Scheme Duration: Approximately 2008 – 2018
- Illegal Products: Vehicle “tuners” and emissions defeat software (“tunes”)
- EPA Civil Penalty (Initial Violation): $4,154,805
- Statutes Violated: 42 U.S.C. 7413(c)(2)(C), 18 U.S.C. 371
- Penalties: Slagel – $150,000 fine, 100 hours community service, 6 months home confinement; Davis – $50,000 fine, 80 hours community service, 6 months home confinement; Bailly – $10,000 fine, 100 hours community service, 6 months home confinement. All received three years of probation.
GrimyTimes will continue to follow this case and report on any further developments. The EPA encourages anyone with information regarding similar violations to report it through their dedicated hotline.
Source: EPA ECHO Enforcement Case Database
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