On November 13, 2012, the Department of Justice announced that the EPA reached an agreement with Yuan Cheng International Group Inc (YCIG) and NST Inc (NST).  Both of the companies are located in Montclair, California and import street motorcycles, recreational vehicles, and small engines.  

The companies admitted to allegations that they imported a total of 17,521 vehicles and engines from 2006 to 2011 that did not meet requirements under the Clean Air Act.  The vehicles and engines were never certified by the EPA and potentially leaked large amounts of emissions and large amounts of carbon monoxide.  

John Cheng and Jenny Yu, both executives for YCIG, agreed to pay a civil penalty of $50,000, and NST agreed earlier to pay $250,000. Both of the companies have stopped importing vehicles and engines, and both of the companies are now dissolved.  

Mr. Cheng and Ms. Yu have agreed to comply with the EPA before any possible future importing, distributing, or selling of any products under the Clean Air Act.  If either defendant decides to form a similar business, they must notify the EPA before they form the U.S. business entity.  

Mr. Cheng and Ms. Yu are also subject to additional penalties in the future.  They could pay up to 25,000 for each vehicle imported, and they could pay $5,000 per day if they do not notify the EPA of any future business transactions under the Clean Air Act.  

Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, stated: “By holding individuals personally accountable under the consent decree, this settlement shows not only that we will pursue companies who violate the law, but where appropriate, will take additional measures to ensure that individual executives who act on behalf of companies cannot repeat the same conduct under a new corporate identity.”

Source: U.S. Department of Justice