TRENTON, N.J. — The CEO of a Georgia-based HVAC contracting company has been charged with illegally importing 500 cylinders of HFC refrigerant into the U.S. from Peru, according the office of the U.S. Attorney for the District of New Jersey.
The case is the second prosecution under the American Innovation and Manufacturing Act (AIM Act), and the first prosecution of a corporate executive under the act.
William Randolph Hires, also known as Randy Hires, 57, of Woodstock, Georgia, and Lima, Peru, is accused of violating the AIM Act by unlawfully importing 500 cylinders of HFCs.
Hires appeared recently before U.S. Magistrate Judge André M. Espinosa in the U.S. District Court for the District of New Jersey, in Newark.
“Today’s charges send a clear message: Enforcement of the law protects our air, land, and water, ensuring a brighter future for our citizens and a level playing field for American businesses and workers,” said Dan Meyers, acting assistant special agent in charge for the criminal investigation division of the U.S. Environmental Protection Agency (EPA).
“HSI (Homeland Security Investigations) Newark successfully conducts investigations into violations of U.S. import and export laws to ensure national security and protect the public’s health and safety. We will hold individuals and corporations accountable for violating global trade regulations,” said U.S. Immigration and Customs Enforcement HSI Newark special agent in charge Ricky J. Patel.
According to documents filed in this case and statements made in court:
Hires, on behalf of his company, purchased 500 cylinders of HFCs in Peru in April of 2022. Over the next several months, EPA officials explained to Hires’ employees that, under the AIM Act and its implementing regulations, Hires’ HVAC company could not lawfully import the HFCs because it did not have the required EPA-issued allowances. In a July 22, 2022, email to one of Hires’ employees, an EPA official stated, in substance, “it is not possible to import bulk HFCs without consumption allowances.”
Hires’ employees conveyed this information from the EPA to Hires on several occasions. On one occasion, according to the government, an employee forwarded to Hires an email that the employee had received from an EPA official which stated, “[t]he HFC you listed (R-410A) is a regulated substance. So if you do not have allowances, you cannot import those bulk HFC refrigerants.” In another email exchange between Hires and an employee, the employee informed Hires that, based on a video conference the employee had with EPA officials, shipping without the necessary allowances would violate import laws so “[i]t is out of our hands.”
Hires nevertheless instructed his employees to illegally import the HFCs into the United States, the government says. In a July 28, 2022, email, Hires stated to his employees: “you have to be careful what agencies you’re reaching out to because the EPA . . . can create a hassle and they can hold our stuff up in customs. …” In a subsequent email, Hires instructed his employees to “get [the HFCs] on the ship and get it out to sea . . . don’t care what it takes[.]” Hires later instructed his employees via email: “Do not call the EPA please do not.”
The violation of the AIM Act with which Hires is charged carries a penalty of up to five years in prison and a $250,000 fine.