The U.S. Consumer Product Safety Commission (CPSC)
announced today that a federal grand jury in Houston, Texas has indicted
Chuck Bai-Fun Chen on various charges stemming from an investigation by
the CPSC of Mr. Chen's Houston businesses, including Wholesale World,
Inc., Texas Tech Mart, Inc., and USA Maxam, Inc.
The indictment charges Mr. Chen with the following federal
offenses:
- making false statements to a CPSC investigator in response to specific
inquiries regarding Mr. Chen's importation, sale and current inventory
of potentially hazardous electrical extension cords and Christmas
lights;
- distributing electrical extension cords with counterfeit Underwriters
Laboratories' trademarks; and
- using a dual invoice scheme to understate the value of products he
imported to reduce the amount he had to pay on importation duties.
"It is a serious offense when a company is untruthful with our
investigators," said CPSC Chairman Ann Brown. " We also want to prevent
unsafe products, such as substandard extension cords, from turning the
holidays into a tragedy for an unsuspecting consumer."
If convicted, Mr. Chen could face up to five years imprisonment and a
$250,000 fine for each false statement charge, up to ten years
imprisonment and a $250,000 fine for the trafficking in counterfeit
goods charge, and up to two years imprisonment and a $250,000 fine for
each count relating to the scheme to understate the value of goods
imported into the United States.
An indictment is a formal accusation of criminal conduct, not evidence.
Defendants are presumed innocent unless and until convicted through due
process of law.
Extension cords and Christmas lights that do not meet Underwriters
Laboratories standards can result in fires or pose a shock or
electrocution hazard.