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.
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, according to the departments.
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.
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now