Federal prosecutors recently fined American Pallet Recycling LLC of Deer Park, New York $100,000 for mark fraud involved in knowingly stamping pallets as ISPM-15 certified when they had not been treated in accordance with international standards. The former owner of the company, Raymond Viola, pleaded guilty and has been sentenced in federal court for criminal violations related to the falsification of certificate stamps in violation of the Plant Protection Act.
The case was brought by the U.S. Justice Department (DOJ) and the U.S. Department of Agriculture (USDA) and is the highest monetary penalty assessed for falsified use of a fraudulent mark related to wood packaging materials under the Plant Protection Act. As part of the plea agreement, the company will pay a fine of $100,000. Viola will pay $1,000 and serve three years of probation and has relinquished the business to his son.
American Pallet Recycling (APR) pleaded guilty to one felony count of falsifying stamps that certified wooden pallets were heat treated to prevent pest infestation, and were suitable for use in international transportation. Viola pleaded guilty to a similar misdemeanor count. Viola had the false stamps affixed to wooden pallets which were used to carry products from the United States to foreign countries. The criminal conduct took place from March 2007 through January 2011, according to the DOJ.
APR sold wooden pallets to multiple other companies who used the pallets to transport products internationally. The purchasing companies ordered and thought they were purchasing heat treated pallets. Instead, Viola created copies of stamp certifications utilized by legitimate wooden pallet treating companies, which he and his employees applied to pallets APR sold. Raymond Viola could not be reached for comment before going to press.
Mark fraud is a serious issue. It can result in civil or criminal penalties. If you suspect somebody is falsely copying your stamp, please contact your certification agency immediately.
