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From Products Liability Law Daily, June 6, 2013

President of LM Import-Export Sentenced to 22 Months for Importing Banned Children’s Products

By Joseph Bichl

Hung Lam, President of LM Import-Export Inc., of Miami, Florida, was sentenced to 22 months in federal prison, three years of supervised release, and a $10,000 fine for smuggling children’s products that contained lead and small parts into the United States, the Consumer Product Safety Commission (CPSC) reported (CPSC News Release, No. 13-208, June 6, 2013; U.S. Attorney’s Office, Southern District of Florida, News Release, May 31, 2013). Co-defendant Isabella Kit Yeung, also from Miami, pleaded guilty to one misdemeanor count of submitting a false label country of origin and was sentenced to one year of probation and a $1,000 fine. The defendants were sentenced in the U.S. District Court for the Southern District of Florida.

Background. From about April 2000 through May 2011, Lam and his related corporations LM Import-Export Inc., Lam’s Investment Corp., and LK Toys Corporation, conspired to sell and distribute banned children’s products imported from China, in violation of both the Consumer Product Safety Act and the Federal Hazardous Substances Act, according to CPSC. The products, including toys, contained lead above federal limits and small parts, which presented choking, aspiration, and ingestion hazards, the Commission stated. The defendants had reportedly smuggled the banned products by means of false statements on custom declaration forms.

“The sentences handed down by the court against these repeat violators are a victory for consumers and the rule of law,” said CPSC Chairman Inez Tenenbaum. “This result demonstrates how serious we are about protecting American consumers from dangerous products and defending our consumer product safety laws.”

Companies: LM Import-Export, Inc.; Lam’s Investment Corp.; LK Toys Corporation

MainStory: TopStory ChildrensProductsNews

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