LOS ANGELES, CA (NEWSnet) - A jury has found two corporate executives guilty of federal criminal charges related to the distribution and sale of defective residential dehumidifiers linked to multiple fires in the first corporate criminal enforcement action ever brought under the Consumer Product Safety Act.

Simon Chu and Charley Loh were found guilty on Thursday of one count of conspiracy to defraud the United States Consumer Product Safety Commission and one count of failure to furnish information as required by the CPSA.

The defective dehumidifiers sold by Chu’s and Loh’s two corporations were included in multiple recalls of a larger number of defective dehumidifiers manufactured by Gree Electric Appliances Inc. of Zhuhai in China. Recall notes stated that more than 450 reported fires and millions of dollars in property damage have been linked to the recalled Gree Zhuhai dehumidifiers. The most recent recall announcements for the Gree Zhuhai dehumidifiers can be found here.

The jury acquitted both defendants of one count of wire fraud.

A sentencing hearing is scheduled for March 11.

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