Indictment of Houston Importer of Extension Cords and Christmas Lights

NEWS from CPSC

U.S. Consumer Product Safety Commission

Office of Information and Public Affairs

Washington, DC 20207

FOR IMMEDIATE RELEASE
October 24, 2001
Release # 02-025

CPSC Consumer Hotline: (800) 638-2772
CPSC Media Contact: Ken Giles, (301) 504-7052

CPSC Investigation Leads to Indictment of Houston Importer of Extension Cords and Christmas Lights

WASHINGTON, D.C. - 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.