Royal Sovereign Pleads Guilty in Air Conditioner Fire Scandal

Newark — Royal Sovereign International Inc., a New Jersey-based office and home appliance seller, has pleaded guilty to charges under the Consumer Product Safety Act (CPSA) for failing to report information concerning portable air conditioners linked to over 40 fires and one death.

According to court documents, the company sold more than 33,000 defective air conditioners between 2008 and 2014 due to a faulty drain motor. This defect could lead to electrical shorts, causing the air conditioners to catch fire and burn uncontrollably.

The CEO of Royal Sovereign, Takwan Lim, had previously settled with the Consumer Product Safety Commission over allegations that another entity he controlled sold ceramic heaters posing a fire risk. The defective air conditioner models were recalled by Royal Sovereign in 2021.

“The criminal and civil resolutions in this matter show this Office’s commitment to protecting the public and holding companies accountable for violating their obligations under the Consumer Product Safety Act,” said Acting U.S. Attorney Alina Habba.

Assistant Attorney General Brett A. Shumate emphasized, “Companies cannot attempt to evade liability by delaying or avoiding reporting.” The CPSC Acting Chairman Peter A. Feldman added, “Royal Sovereign’s failure to report a deadly defect led to tragedy, and CPSC will not hesitate to pursue violations of the law.

In connection with its guilty plea, Royal Sovereign is required to pay $395,786.48 in restitution to victims. Takwan Lim, who was involved in previous settlements, died in 2023. The company has ceased all operations related to consumer products and suspended all but $100,000 of the civil penalty.