Two automotive dealerships in different parts of the country are making headlines following legal action taken against them for environmental issues. One, in Nebraska, and the other in California.
Nebraska
An auto dealership in Nebraska is in hot water in relation to a Clean Air Act violation. The U.S. District Attorney's Office in Nebraska shares the details of its case against Moody Motor Company, Inc., below:
United States Attorney Susan Lehr announced that Moody Motor Co., Inc., located in Niobrara, Nebraska, was sentenced on July 31, 2024, in federal court in Omaha, Nebraska for accessory after the fact to a Clean Air Act violation. United States District Court Judge Susan M. Bazis sentenced Moody Motor Co., Inc. to a 1-year term of probation, a fine in the amount of $ 39,741.95, and a $125 special assessment.
Moody Motor Co., Inc. is a certified Ford dealership located in Niobrara. In addition to selling new and used vehicles, Moody Motor Co., Inc. has a vehicle service department. Moody Motor Co., Inc. has been in operation since 1955.
In January 2022, Environmental Protection Agency – Criminal Investigations Division (EPA-CID) received information stemming from an investigation in Dallas, Texas involving Diesel Performance of Texas (DPTX). DPTX sold tuners and delete kits which are products used to modify exhaust systems in violation of the Clean Air Act. An employee of DPTX had supplied Moody Motor Co., Inc. with these products. DPTX sold Moody Motors these products approximately 14 times between April 2019 and January 31, 2022.
On April 28, 2022, EPA-CID executed a search warrant at Moody Motor Co., Inc. and interviewed multiple employees. The employees admitted to performing aftermarket delete and tune work. One of the mechanics estimated that they had installed delete devices on approximately 10-20 vehicles. The mechanic confirmed that the tunes used were purchased from DPTX. One truck that Moody Motor Co., Inc. installed a delete device on was identified and was owned by a relative of one of the employees. Moody Motor Co., Inc.’s employees stated that they did this because the truck was a trade in that needed a lot of work done on it to include having sensors out and that this was easier than replacing the sensors. They did install a straight pipe and an EGR block on the truck. The owner of the truck was contacted and agreed to bring the truck in to be inspected by EPA-CID who confirmed that the emissions control system had been illegally modified and the invoice reflected that the delete tune had been purchased from DPTX.
This case was investigated by the Environmental Protection Agency – Criminal Investigation Division.
California
In the Bay Area of California, meanwhile, a large car dealer has been fined almost $300,000 to settle an environmental protection case that alleged the company unlawfully disposed of hazardous waste.
The Santa Clara County D.A.'s office shares details below:
Large Bay Area car dealer, DGDG Automotive, will pay $290,000 to settle an environmental protection case that alleged the company unlawfully disposed of hazardous waste.
The civil complaint was filed by the Santa Clara County District Attorney’s Office in local superior court. Joined by four other local prosecutorial offices, it was alleged that DGDG Automotive, LLC, also known as Del Grande Dealer Group, did not properly manage hazardous waste, such as brake parts cleaner, automotive fluids, and parts containing circuit boards. The settlement also resolves allegations that the company failed to redact or shred paperwork containing customer information, before throwing it away in the trash.
“Hazardous waste and documents containing confidential customer information must be disposed of properly to avoid harm to the environment and consumers,” District Attorney Jeff Rosen said. "It may be more expensive to do it, but it’s the law and it’s worth it.”
On July 29, 2024, a judge ordered $215,000 in civil penalties to be paid by DGDG, which does business at more than 16 locations in Northern California, including Capitol Volkswagen, Capitol Chevrolet, and Stevens Creek Mazda.
In addition to paying civil penalties, DGDG was ordered to pay approximately $50,000 for the cost of the investigation and $25,000 to help fund the training of California regulators. DGDG was also ordered to designate an employee to manage and oversee its hazardous waste management and employee training programs. DGDG cooperated with prosecutors during the investigation and took significant steps to improve its compliance with the environmental and consumer protection violations brought to its attention.
The investigation began in 2021 when DA’s Office investigators conducted unannounced inspections of DGDG trash containers and found hazardous waste and pages of customer records. Additional inspections overt the next year turned up violations at the company’s businesses in Alameda, Solano, Contra Costa, and Monterey counties.
Photo Credit: MIND AND I/Shutterstock.com.