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North Carolina Diesel Shop Hit with $10 Million Fine for Violating Clean Air Act

# Diesel Tuners Face Massive Fines for Violating Clean Air Act

## A $10 Million Penalty for Emissions Defeat Devices

The United States federal government has made it abundantly clear that violating the Clean Air Act (CAA) will result in significant consequences. Over the past three years, diesel truck tuners have learned this the hard way, facing substantial criminal fines and civil penalties. The Environmental Protection Agency (EPA) and the Department of Justice (DOJ) have recently taken their enforcement efforts a step further by imposing a whopping $10 million penalty on a North Carolina aftermarket shop named Rudy’s Performance Parts and its owner, Aaron Rudolf.

## Criminal and Civil Penalties

Rudy’s Performance Parts and Aaron Rudolf were found guilty of manufacturing, selling, and installing emissions defeat devices, which are used to bypass emissions control systems in vehicles. As a result, they were sentenced to pay $2.4 million in criminal fines for conspiring to violate the CAA. In addition, they were previously ordered to pay $600,000 in fines and enter a three-year probation period.

## The Largest Monetary Penalty Yet

The most significant penalty in this case comes from a civil suit filed by the DOJ on behalf of the EPA. The suit alleges that Rudy’s and Rudolf failed to adequately respond to the EPA’s requests for information and were involved in distributing defeat devices to customers. As a result, a $7 million consent decree was reached. This penalty is by far the largest fine and penalty total ever seen in cases related to independent diesel shops.

## The Financial Impact

According to the DOJ and EPA’s findings, Rudy’s Performance Parts generated tens of millions of dollars in revenue from selling software tuning devices alone. The most popular product sold by the company was the Mini-Maxx tuner, manufactured by another entity referred to as “Company A.” Rudy’s also sold XRT Pro tuners, which were also made by Company A. It is worth noting that H&S Performance, another aftermarket manufacturer penalized for violating the CAA, produced products with the same names.

## Counterfeit Tuners and In-House Production

When Company A discontinued the Mini-Maxx and XRT Pro tuners, Rudy’s conspired with others to produce imitation tuners that were falsely branded. Initially, they collaborated with a software technician from July 2015 until December 2016. Eventually, Rudy’s started producing these counterfeit tuners in-house, purchasing an $850,000 laptop that contained the necessary software to convert other tuners into Mini-Maxxes and XRT Pros. From July 2016 to July 2018, Rudy’s sold nearly 44,000 imitation tuners, generating approximately $33 million in revenue.

## Compliance Measures and Forfeiture

As part of the consent decree, Rudy’s and Rudolf are required to cease providing technical support for the defeat devices, reject any warranty claims related to them, and instruct authorized dealers to do the same. They are also prohibited from selling or transferring any intellectual property associated with the defeat devices. All marketing materials must remove any information about emissions control tampering, and any remaining aftermarket defeat devices in their possession must be forfeited.

## The Government’s Strong Stance on Clean Air Act Violations

This case demonstrates the federal government’s commitment to enforcing the Clean Air Act and holding violators accountable. Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance emphasized that the EPA will vigorously pursue both criminal and civil penalties to put an end to illegal behavior that evades public health protections.

In conclusion, the $10 million penalty imposed on Rudy’s Performance Parts and its owner, Aaron Rudolf, serves as a stark reminder to diesel tuners that violating the Clean Air Act will result in severe consequences. The case highlights the financial impact and the government’s determination to crack down on emissions defeat devices. As long as the EPA and DOJ have the support of the sitting administration, they will continue to impose substantial fines and penalties on violators of the Clean Air Act.

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