In mid-March, American Pallet Recycling (APR) and its former president and owner, Raymond Viola, pleaded guilty and were sentenced by U.S. District Court in the Eastern District of New York for criminal wrongdoing related to false certificate stamps in violation of the Plant Protection Act.
As part of the plea agreement, the company will pay a $100,000 fine, while Viola will pay $1,000 and serve three years of probation. He has relinquished the business to his son, according to the Justice and Agriculture departments.
In court, APR plead guilty to a single felony count of falsifying stamps that certified wood pallets were heat treated to prevent pest infestation, and were suitable for use in international transportation. Viola pleaded guilty to a similar misdemeanor count. He had the false stamps affixed to wood pallets which were then used to carry products from the United States to foreign countries. The activity took place from March 2007 through January 2011.
USDA requires the heat treatment of wood pallets used in international transactions. The requirement is designed to prevent parasites and plant diseases from potentially entering the United States in wood packaging materials. USDA began requiring heat treatment of wood packaging material in September 2005. Wood pallets that carry products transported within the United States are not required to be heat treated.
APR sold wood pallets to multiple companies that used them to ship products overseas. The companies were misled into thinking these pallets were heat treated. “Instead, Viola created copies of stamp certifications utilized by legitimate wood pallet treating companies, which he and his employees applied to pallets APR sold,” Justice and USDA said.
This case marks the highest monetary penalty assessed for use of fraudulent markings on wood-packaging materials under the Plant Protection Act.
This commentary was published in the April 2015 issue of American Shipper.
