Dehumidifiers Cause Hundreds of Fires in California, Manufacturers Jail

Two Los Angeles County men have been sentenced to more than three years in federal prison for selling faulty dehumidifiers that caused hundreds of fires, according to a report. CBS News.

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Simon Chu, 70, and Charlie Lo, 67, were executives at Gree USA. In September 2012, the men received multiple warnings that dehumidifiers made by their partners in China were faulty and flammable, but they failed to report the information to the U.S. Consumer Product Safety Commission (CPSC). They continued selling the dehumidifiers for at least six months before filing a report with the CPSC, the Justice Department said.

Federal prosecutors say recall documents indicate the dehumidifiers caused more than 450 fires and millions of dollars in property damage.

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“Corporate executives who willfully ignore the law will be held accountable, especially when their actions result in death and serious injury,” said U.S. Attorney Bill Essayly. “By putting profits ahead of people’s safety, these defendants have created a serious threat to consumers. We will continue to hold accountable those who put people in danger.”

Chu was sentenced to 38 months in federal prison and fined $5000. Lo was sentenced to 40 months in federal prison and fined $12.

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Their company, Gree USA, was fined $500. Gree USA, along with its partners Gree Zhuhai and Hong Kong Gree Electric Appliances Sales Co. Ltd, were ordered to pay $000 million to victims, the Justice Department said.

"These products made in China were dangerous, and the defendants knew it," said CPSC Acting Chairman Peter Feldman.

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