N.J. company pleads guilty to failing to report defective air conditioners tied to fires, death
NEW JERSEY — Royal Sovereign International Inc., a New Jersey-based company that sold home and office appliances, pleaded guilty Tuesday to a federal charge of failing to report dangerous defects in its portable air conditioners that were linked to more than 40 fires and one death, federal officials said.
According to the U.S. Department of Justice, Royal Sovereign was charged under the Consumer Product Safety Act (CPSA) for willfully failing to immediately notify the U.S. Consumer Product Safety Commission (CPSC) of a defect that posed a substantial product hazard. The company also agreed to pay $395,786.48 in restitution and enter into a civil settlement that includes a $16,025,000 penalty — the maximum civil fine allowed under the CPSA, though all but $100,000 was suspended due to the company’s limited ability to pay.
Royal Sovereign, which also operated under the name Royal Centurian Inc., imported and sold more than 33,000 air conditioners between 2008 and 2014. The units were prone to electrical failure due to faulty drain motors, creating a fire risk.
“The criminal and civil resolutions in this matter show this Office’s commitment to protecting the public and holding companies accountable for violating their obligations under the Consumer Product Safety Act,” said Acting U.S. Attorney Alina Habba.
“Companies cannot attempt to evade liability by delaying or avoiding reporting,” added Assistant Attorney General Brett A. Shumate of the DOJ’s Civil Division. “When they do, they must be held accountable.”
According to court documents, Royal Sovereign misled the CPSC in 2010 by reporting it was aware of only two fire incidents related to the units and that the products were discontinued. In reality, the company had documentation of at least 16 fire incidents at that time and continued selling the products.
A recall was finally issued in 2021. According to the recall notice, a woman died from smoke inhalation in August 2016, and her two children were injured after one of the defective air conditioners caught fire.
“Royal Sovereign’s failure to report a deadly defect led to tragedy,” said CPSC Acting Chairman Peter A. Feldman. “CPSC will not hesitate to use the full weight of its executive power to pursue violations of the law — including criminal penalties.”
The company has since ceased all consumer product operations, and its former CEO, Takwan Lim, who previously signed a related CPSC settlement involving portable ceramic heaters, died in 2023.
The consent decree in the civil case requires Royal Sovereign and certain associated individuals to implement internal compliance procedures if they ever resume consumer product operations.
Victims of bodily injury or property damage from Royal Sovereign or Royal Centurian portable air conditioners with model numbers beginning in PAC-3012, ARP-3012, or ARP-3014 are urged to contact the U.S. Department of Justice at victimassistance.fraud@usdoj.gov by Sept. 5, if they have not yet received compensation.
For more information on the recalled products, visit the CPSC recall page at www.cpsc.gov/Recalls.
