Newark, NJ – A New Jersey-based appliance company has pleaded guilty in federal court for failing to report a dangerous fire risk tied to its portable air conditioners — a defect now connected to more than 40 fires and one death.
On Monday, Royal Sovereign International Inc. admitted it violated the Consumer Product Safety Act (CPSA) by failing to notify the U.S. Consumer Product Safety Commission (CPSC) about the risk posed by over 33,000 defective air conditioning units sold between 2008 and 2014.
As part of the resolution, Royal Sovereign will pay $395,786.48 in restitution to victims and has agreed to a $16,025,000 civil penalty, the maximum fine allowed under the CPSA. Most of that penalty is suspended due to the company’s limited ability to pay, leaving $100,000 to be collected.
The air conditioners, which were recalled in 2021, had a faulty drain motor capable of short-circuiting and igniting fires. Despite receiving dozens of complaints and fire-related lawsuits, the company did not report the hazard to the CPSC as required.
In fact, federal prosecutors said Royal Sovereign deliberately misled the agency in 2010, claiming it knew of only two incidents and that the products had been discontinued — while the company was actively distributing units and was aware of at least 16 fires at the time.
One of the fires proved fatal. According to the recall notice, a woman died in 2016 from smoke inhalation, and her two children were injured after their home was engulfed by flames started by a Royal Sovereign air conditioner.
Royal Sovereign, also known as Royal Centurian Inc., has since ceased all operations related to consumer product sales. Its former CEO, Takwan Lim, who had previously faced regulatory scrutiny for selling dangerous ceramic heaters through a related entity, died in 2023.
The plea agreement also requires the company and certain individuals to implement internal compliance controls and notify the government before engaging in any future consumer product activity.
Consumers who suffered injury or property damage involving Royal Sovereign units with model numbers beginning PAC-3012, ARP-3012, or ARP-3014 are urged to contact the U.S. Department of Justice by September 5 if they have not yet received compensation.
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Key Points
- Royal Sovereign pleaded guilty to failing to report defective air conditioners tied to over 40 fires and one death.
- The company will pay nearly $400K in restitution and agreed to a $16 million civil penalty, most of which is suspended.
- The defective units were recalled in 2021 and the company has since shut down consumer operations.
