EPA Announces Prison, Fine for Smuggler of Refrigerant
The Environmental Protection Agency announced that on July 29, 2011 Brendan Clery, was sentenced to 18 months in prison and ordered to pay a $10,000 criminal fine and forfeit illegal proceeds in the amount of $935,240 for knowingly importing an ozone-depleting substance regulated by EPA under the Clean Air Act (CAA).
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(Clery pleaded guilty in April 2011 to knowingly importing approximately 278,256 kilograms of illegal hydrochlorofluorocarbon - 22 (HCFC-22, also known as R-22) into the U.S. HCFC-22 depletes the ozone layer, which EPA states results in increased ultraviolet radiation-B (UV-B) reaching the Earth’s surface, which in turn leads to a greater chance of overexposure to UV radiation and the risks of health effects, such as skin cancer, cataracts, and suppression of the immune system.)
Clery Smuggled Restricted HCFC-22 from China with Intent to Sell It Illegally
According to court records and statements, in 2005, Clery formed and served as president of Lateral Investments LLC, a corporation he established in Florida for the purpose of importing merchandise, including refrigerant gas he intended to sell illegally. Between June and August 2007, Clery illegally smuggled approximately 278,256 kilograms or 20,460 cylinders of restricted HCFC-22 from China, with a market value of $1,438,270, and at no time did Clery or Lateral Investments hold the consumption allowances required to legally import HCFC-22.
Limited Import of HCFC-22 Allowed until 2030 Phase-out, if Conditions Met
EPA explains that it established a schedule to phase out the production and importation of ozone-depleting substances, with a complete phaseout starting in 2030. To meet its obligations under the Montreal Protocol, an international treaty designed to protect the ozone layer, EPA issued baseline consumption allowances for the production and importation of HCFC-22 to individuals and companies. To legally import HCFC-22 for consumption, one must hold and expend one consumption allowance for each kilogram of HCFC-22 imported into the United States.
(This case was part of a larger criminal investigation known as Operation Catch-22. It was investigated by the EPA, U.S. Immigration and Customs Enforcement, and the Florida Department of Environmental Protection, Criminal Investigation Bureau, and prosecuted by special assistant U. S. Attorney Jodi A. Mazer.)