Milad Sepehrnia, Clean Air Act Conspiracy Violation, California 2015

Lawndale, CA – Milad Sepehrnia was sentenced to three months in federal prison in June 2015 after pleading guilty to a Clean Air Act conspiracy violation stemming from a widespread smog check fraud scheme. The case, investigated jointly by the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and the Federal Bureau of Investigation (FBI), revealed a deliberate effort to bypass California’s stringent vehicle emissions standards.

According to court documents, Sepehrnia and co-defendant Aaron Palacios operated a smog check facility in Lawndale where they engaged in “clean piping” – a fraudulent practice involving the use of a substitute vehicle to generate passing smog certificates for vehicles that would otherwise fail inspection. Investigators discovered that the same vehicle was repeatedly used to produce numerous falsified certificates, effectively masking the true emissions output of potentially polluting vehicles.

The scheme, uncovered in early 2014, involved circumventing the legally mandated testing process. Instead of accurately assessing the emissions of each vehicle brought in for inspection, Sepehrnia and Palacios would connect the failing vehicle to a functioning, cleaner vehicle during the testing procedure. This allowed them to falsely report compliance with California’s air quality regulations, enabling vehicle owners to register their cars despite failing emissions tests. Dozens of fraudulent smog checks were identified during the investigation.

Sepehrnia was initially charged on November 5, 2014, with violating Title 18 U.S. Criminal Code, specifically 18 U.S.C. § 371 – Conspiracy to Defraud the United States. This statute covers offenses involving agreements between two or more people to obstruct lawful government functions. He entered a guilty plea on March 10, 2015. His co-defendant, Aaron Palacios, received a different outcome, being accepted into the Conviction and Sentence Alternatives Diversion Program, suggesting a lesser role in the conspiracy or successful completion of rehabilitative requirements.

The EPA-CID emphasizes that falsifying smog checks not only undermines environmental regulations designed to protect public health but also creates an unfair advantage for those who attempt to circumvent the system. California’s stringent smog check requirements are crucial in combating air pollution in a state heavily impacted by vehicle emissions. The investigation highlights the agency’s commitment to pursuing and prosecuting individuals who profit from environmental fraud.

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Key Facts

Defendant: Milad Sepehrnia
Crime: Clean Air Act Conspiracy (Smog Check Fraud)
Location: Lawndale, California
Year: 2015
Statute Violated: 18 U.S.C. § 371 (Conspiracy to Defraud the United States)
Method: “Clean Piping” – Using a substitute vehicle to falsify smog certificates.
Sentence: 3 months incarceration
Co-defendant: Aaron Palacios – entered diversion program.

The penalties for violating 18 U.S.C. § 371 can include a fine and/or imprisonment of up to five years. The specific sentence handed down to Sepehrnia reflects the severity of the offense and the court’s determination of appropriate punishment for his role in the conspiracy.

Source: EPA ECHO Enforcement Case Database

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