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NEWS from CPSC

U.S. Consumer Product Safety Commission

Office of Information and Public Affairs Washington, DC 20207
FOR IMMEDIATE RELEASE
January 23, 2002
Release # 02-091 		CPSC Consumer Hotline: (800) 638-2772
CPSC Media Contact: Scott Wolfson, (301) 504-7051

Houston Businessman Pleads Guilty To Making False Statements To Government Officials

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC) announced today that a 49-year-old Houston, Texas, businessman pleaded guilty to felony charges that he made a false statement to a CPSC investigator and he imported merchandise into the United States by means of false statements.

Chuck Bai-Fun Chen operated three businesses in Houston: Wholesale World Inc., Texas Tech Mart Inc., and USA Maxam Inc., which imported and distributed various consumer products into the United States, including household extension cords and Christmas tree lights. During a CPSC inspection, Chen falsely told a CPSC investigator that he did not import or sell any Christmas tree lights in 1999. At the time he made the statement Chen's company had such lights in inventory. The lights that he imported in 1999 were tested by the CPSC and were found to be substandard. An indictment against Chen, which was filed in October 2001, came about as a result of a CPSC investigation into the safety of products sold by Chen's businesses.

Chen also pleaded guilty to submitting fake invoices to the U.S. Customs Service to understate the value of products he imported to reduce the amount he had to pay on importation duties.

Chen could face up to seven years imprisonment and up to $500,000 in fines when sentenced by U.S. District Judge Ewing Werlein in May 2002.

"We take seriously instances in which an individual provides false information to CPSC investigators," said CPSC Acting Chairman Thomas Moore. "CPSC will take strong action to protect the integrity of our investigations and deter this kind of illegal conduct."

The charges against Mr. Chen were prosecuted by the Office of Consumer Litigation of the U.S. Department of Justice and the U.S. Attorney's Office for the Southern District of Texas.