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According to court filings, Gree Zhuhai, Gree Hong Kong and Gree USA (collectively, the Gree Companies) knew their dehumidifiers were defective, failed to meet applicable safety standards and could catch fire, but the companies failed to report that information to the CPSC for months. The companies only reported and recalled the dehumidifiers after consumer complaints of fires and resulting harm continued to mount.
Obaidullah Syed, 66, of Northbrook, Ill., pleaded guilty to conspiracy to export goods from the U.S. without a license from the Department of Commerce and to submit false export information. The conviction is punishable by a maximum sentence of five years in federal prison and a maximum fine of $250,000.
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