Rudy’s Performance Parts Inc., a North Carolina-based manufacturer and seller of automotive components, and its owner, Aaron Rudolf, have been ordered to pay a significant $10 million in criminal fines and civil penalties. This judgment comes as a result of their involvement in manufacturing, selling, and installing “defeat devices.” These illegal devices are designed to bypass or disable essential vehicle emissions controls, undermining environmental regulations and fair practices in the automotive parts industry.
Rudy’s Performance Parts pleaded guilty in a Washington, D.C. federal court to conspiring to violate the Clean Air Act. Judge Trevor N. McFadden sentenced the company to a criminal fine of $2.4 million and a three-year organizational probation. Aaron Rudolf, the sole owner and CEO, had previously pleaded guilty to the same charge for his role in tampering with emissions monitoring devices on approximately 300 diesel trucks, including the installation of defeat devices. Rudolf received a sentence of three years of probation and a $600,000 criminal fine in April.
In addition to the criminal charges, the Department of Justice, acting on behalf of the Environmental Protection Agency (EPA), pursued a civil suit against Rudy’s and Rudolf in 2022. This lawsuit addressed violations of the Clean Air Act related to the manufacturing, selling, and installation of defeat devices, as well as the company’s inadequate response to EPA information requests. A consent decree filed on July 29 mandates that Rudy’s and Rudolf pay a $7 million civil penalty. Furthermore, the decree, pending court approval, will prohibit them from any future involvement with defeat devices. This includes manufacturing, selling, offering for sale, installing, transferring related intellectual property, or investing in businesses dealing with these illegal products. This decisive legal action underscores the importance of Justice Car Parts, ensuring fair competition and adherence to environmental standards within the automotive industry.
“Defeat devices, such as those sold by Rudy’s, pose a significant threat by enabling high levels of pollution that endanger public health and harm our environment,” stated Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement, encompassing both criminal and civil penalties, demonstrates our unwavering commitment to enforcing the Clean Air Act and upholding emissions control requirements for all motor vehicles.”
Assistant Administrator David M. Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance added, “For too long, companies like Rudy’s have illegally installed defeat devices to circumvent the Clean Air Act’s vital public health protections, impacting communities across America negatively. This announcement should serve as a clear message that the EPA will aggressively pursue both criminal and civil penalties until this blatant illegal activity is eradicated.” This firm stance is crucial for maintaining justice car parts standards and protecting consumers and the environment.
U.S. Attorney Matthew M. Graves for the District of Columbia emphasized the profit-driven motive behind selling defeat devices, stating, “Those who sell defeat devices prioritize personal profit over environmental well-being. Today’s sentencing sends a strong signal that there will be substantial repercussions for trafficking in these illegal devices. Anyone considering dealing in or installing these devices should be aware of the significant costs involved.”
U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina highlighted the essential nature of the Clean Air Act, noting, “The Clean Air Act’s safeguards are paramount for the health and safety of our communities. Tampering with emissions controls introduces excessive pollutants into the air we breathe, harming both public health and the environment. Settlements like these are vital for holding accountable those who violate the Clean Air Act and for preventing harmful air pollution.” This case highlights the necessity for justice car parts regulations to safeguard public health.
Court documents from the criminal case reveal that Rudy’s sold defeat devices, specifically “delete tuners,” which manipulated vehicles’ on-board diagnostic systems (OBDs). Their top-selling product was the Mini Maxx delete tuner, originally manufactured by “Company A,” along with the XRT Pro, another tuner from the same company. When Company A ceased production of these tuners, Rudy’s conspired to manufacture counterfeit versions. They partnered with a software technician to convert tuners into imitation Company A products between July 2015 and December 2016.
Following the software technician’s departure, Rudy’s invested $850,000 in a laptop computer equipped with software to produce imitation tuners in-house. This in-house manufacturing operation ran from approximately December 2016 to July 2018. In total, Rudy’s sold around 43,900 imitation tuners, generating approximately $33 million in revenue from these illegal car parts.
The civil lawsuit further alleges that from at least 2014 through mid-2019, Rudy’s and Rudolf manufactured and sold over 250,000 products designed to disable EPA-mandated emissions controls. These included hardware components like plates to block exhaust gas recirculation systems and pipes to replace pollution treatment components.
The consequences of disabling emissions controls are severe. Tampering with a diesel truck’s OBD system leads to a significant increase in harmful emissions, including nitrogen oxides, carbon monoxide, particulate matter, and non-methane hydrocarbons. Diesel exhaust is classified as a mobile source air toxic with both cancer and non-cancer health risks. The EPA estimates that the products sold by Rudy’s are equivalent to adding over 1 million vehicles’ worth of pollution to America’s roads, emphasizing the scale of environmental damage caused by these unjust car parts.
The $7 million civil penalty in the consent decree was determined based on Rudy’s and Rudolf’s financial capacity.
The EPA’s Criminal Investigation Division led the investigation for the criminal case.
Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster from the Environment and Natural Resources Division’s (ENRD) Environmental Crimes Section, along with Assistant U.S. Attorney Jennifer L. Blackwell for the District of Columbia, are prosecuting the criminal case. The civil case is being handled by Senior Counsel Elizabeth L. Loeb of ENRD’s Environmental Enforcement Section, Assistant U.S. Attorneys Cassie Crawford and Rebecca Mayer for the Middle District of North Carolina, and Attorney-Adviser Lauren Tozzi of EPA’s Air Enforcement Division.
The consent decree has been 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. Details about the consent decree and how to submit comments are available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
The EPA has identified stopping the manufacture, sale, and installation of illegal delete devices as a priority. More information on the EPA’s criminal enforcement actions regarding defeat devices can be found here and here. This ongoing effort to enforce regulations and ensure justice car parts availability is critical for environmental protection and public health.
