California Executives Sentenced for Continuing to Sell Dehumidifiers That Caught on Fire
Two executives from Southern California were sentenced this week to more than three years in prison each for failing to report defects in dehumidifiers, which were later linked to hundreds of fires and possibly four deaths, according to federal prosecutors and recall documents.
Simon Chu, 70, of Pomona, Calif., and Charley Loh, 67, of Arcadia, Calif., continued selling the dehumidifiers for at least six months after tests revealed a defect that caused them to catch on fire, according to prosecutors with the Justice Department.
The devices were sold nationwide through major retailers, including Home Depot, Lowe's, Sam's Club, Sears, Walmart and others, between 2011 and 2014, at prices ranging from $110 to $400, according to federal prosecutors.
A federal judge sentenced Mr. Chu to 38 months in federal prison and imposed a $5,000 fine. Mr. Loh received a 40-month sentence and a $12,000 fine.
'Corporate executives who choose to ignore the law will be held accountable — especially when death and serious injuries result,' Bill Essayli, the U.S. attorney for the Central District of California, said in a statement.
Both men were convicted by a Los Angeles jury in November 2023 of failing to report the defects to the Consumer Product Safety Commission and of conspiracy to defraud the United States by obstructing the safety commission, according to court records. They were found not guilty of a third charge of committing wire fraud.
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