A North Carolina-based automotive parts company, Rudy’s Performance Parts Inc., and its owner have been penalized $10 million for Clean Air Act violations. The company, specializing in Carolina Car Parts, illegally manufactured and sold “defeat devices” designed to bypass vehicle emissions controls.
Rudy’s Performance Parts Inc. pleaded guilty in federal court in Washington, D.C., to conspiring to violate the Clean Air Act. Judge Trevor N. McFadden ordered the company to pay a criminal fine of $2.4 million and undergo a three-year probation period. Aaron Rudolf, the owner and CEO, had previously pleaded guilty for his role in the conspiracy, which involved installing defeat devices on approximately 300 diesel trucks. Rudolf was sentenced to three years of probation and a $600,000 criminal fine in April.
Alt text: EPA and DOJ seals representing Environmental Protection Agency and Department of Justice, signifying their collaborative effort in enforcing environmental regulations and prosecuting Rudy’s Performance Parts.
In addition to the criminal charges, Rudy’s and Rudolf faced a civil lawsuit filed by the Justice Department on behalf of the Environmental Protection Agency (EPA) in 2022. The lawsuit addressed the manufacturing, selling, and installation of defeat devices, as well as the company’s failure to respond adequately to EPA information requests. A consent decree filed on July 29 mandates that Rudy’s and Rudolf pay a $7 million civil penalty. The decree also prohibits them from engaging in any future activities related to defeat devices, including manufacturing, selling, or profiting from them. This consent decree is awaiting court approval.
“Defeat devices, like those sold by Rudy’s Performance Parts, significantly increase harmful pollution, posing serious health risks and environmental damage,” stated Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement underscores our commitment to rigorously enforce the Clean Air Act and vehicle emissions control standards.”
Assistant Administrator David M. Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance added, “For too long, companies have illegally used defeat devices to circumvent Clean Air Act protections, harming communities nationwide. This action demonstrates the EPA’s dedication to pursuing both criminal and civil penalties to stop this illegal behavior.”
U.S. Attorney Matthew M. Graves for the District of Columbia emphasized the profit motive behind these illegal actions: “Sellers of defeat devices prioritize personal gain over environmental protection. This sentencing sends a clear message about the significant repercussions for those involved in trafficking these devices. The costs of engaging in such activities are substantial.”
U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina highlighted the importance of clean air regulations: “The Clean Air Act safeguards are vital for community health and safety. Tampering with emissions controls introduces excessive pollutants into our air, harming both public health and the environment. Settlements like this are crucial for holding violators accountable and preventing harmful air pollution.”
Court documents revealed that Rudy’s Performance Parts sold delete tuners that manipulated vehicle on-board diagnostic systems (OBDs). Their top-selling product was the Mini Maxx delete tuner, initially manufactured by “Company A.” Rudy’s also sold the XRT Pro, another tuner from Company A. When Company A ceased production, Rudy’s conspired to produce imitation tuners. They partnered with a software technician from July 2015 to December 2016 to convert tuners into imitations.
Alt text: Close-up of Mini Maxx and XRT Pro delete tuners, highlighting electronic interfaces and screens used to manipulate vehicle systems, key components in the Rudy’s Performance Parts emissions defeat devices case.
After the software technician stopped assisting, Rudy’s invested $850,000 in a laptop and software to manufacture imitation tuners in-house from December 2016 to July 2018. They sold approximately 43,900 imitation tuners, generating $33 million in revenue.
The civil lawsuit alleges that Rudy’s and Rudolf sold over 250,000 defeat devices from 2014 to mid-2019, including hardware like exhaust gas recirculation system blocking plates and pipes replacing pollution treatment components.
Disabling emissions controls significantly increases vehicle emissions, including nitrogen oxides, carbon monoxide, particulate matter, and hydrocarbons. Diesel exhaust is a known mobile source air toxic, posing cancer and noncancer health risks. The EPA estimates that Rudy’s sold products that added pollution equivalent to over 1 million vehicles.
The $7 million civil penalty was determined based on Rudy’s and Rudolf’s financial capacity. The EPA’s Criminal Investigation Division led the criminal investigation. The consent decree is lodged in the U.S. District Court for the Middle District of North Carolina and is subject to a 30-day public comment period and court approval.
The EPA prioritizes stopping the manufacture, sale, and installation of illegal delete devices. More information on EPA’s criminal enforcement actions on defeat devices is available on the EPA website. This case serves as a reminder of the stringent regulations governing Carolina car parts and the automotive industry’s responsibility to adhere to environmental laws.
