Final Corporate Defendant Sentenced In Major Clean Air Act Case Publisher: U.S. Attorney's Office, Western District of Michigan Dateline: Grand Rapids, Michigan Date: 23 February 2024 Subjects: American Government , Crime, The Environment, Tires Trucking Topic: Diesel Freak

Court Orders $750,000 Fine for Disabling Emissions Controls on Semi-Trucks

          GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a company and several individuals have been sentenced for violating the Clean Air Act by engaging in an aftermarket scheme to disable the emissions control systems of semi-trucks. U.S. District Court Judge Paul L. Maloney confirmed the felony convictions of corporate defendant Diesel Freak, LLC, of Gaylord, and ordered the business to pay a fine of $750,000 and serve a term of probation. It was the largest fine imposed over the course of the case in which the Court ordered over $1.8 million in fines.  Judge Maloney also sentenced the owner of the business, Ryan Lalone, and two employees, Wade Lalone and James Sisson, each to 1-year probation. Today’s hearing concludes sentencing for all 14 defendants charged in the case. In imposing the sentences, Judge Maloney commented on the “systematic violations” of the Clean Air Act that occurred in this case.

          “Holding corporations responsible for environmental crimes is tremendously important,” said U.S. Attorney Mark Totten.  “This case is one of the largest of its kind ever charged in the United States and today’s sentences send a clear message that polluters who break environmental laws will be held accountable. Environmental rules safeguard the water we drink, the lakes we fish, and the air we breathe. It’s critical that we protect our people and our planet from harmful pollutants.”

          The company and the individual defendants pleaded guilty to charges of conspiring to violate the Clean Air Act. 

          Diesel Freak, LLC, is a diesel repair and electronics modification facility headquartered in Gaylord, Michigan. Diesel Freak designs and builds electronic monitoring and modification kits that adjust engine power and fuel efficiency through Wi-Fi connections with trucks on the road. During the conspiracy period, which ran from approximately 2015 through November 2018, when Diesel Freak was searched by the EPA, Diesel Freak conducted remote reprogramming, or tuning, of on-board diagnostic systems (“OBD”), including deletions of environmental controls, allowing diesel engines for large open-road trucks to work cheaper, without environmental restrictions, causing pollution beyond that allowed by law.  Mr. Lalone estimated that 70 percent of Diesel Freak’s business was full emissions control deletions.  This process is sometimes referred to as a “deletion,” that is, “deleting” the emissions controls from the vehicles.  “Deleting” emissions controls from the vehicles can improve performance and fuel economy and save maintenance costs but is unlawful and causes significant environmental harm.  Tampering with or removing emissions controls can drastically increase the emissions of nitrogen oxides, particulate matter, carbon monoxide, and non-methane hydrocarbons found in vehicle exhaust.  Exposure to and inhalation of these chemicals at greater levels is associated with serious health risks.

          “Exposure to diesel exhaust can lead to serious health conditions, such as asthma and respiratory illness, and contributes greatly to poor air quality -- concerns the defendants in this case ignored in favor of financial profit,” said Acting Special Agent in Charge Lisa Matovic of the U.S. Environmental Protection Agency’s Criminal Investigation Division (“EPA-CID”).  “The sentencings in this case show that EPA and our law enforcement partners will hold accountable individuals who disregard health and environmental laws designed to protect our communities from dangerous air pollution.”  

          The purpose of the Clean Air Act is, among other goals, “to protect and enhance the quality of the Nation’s air resources so as to promote the public health and welfare and the productive capacity of its population.”  In passing the Act, Congress found that “the increasing use of motor vehicles[] has resulted in mounting dangers to the public health and welfare.” 

          U.S. Attorney Totten also noted that those with information about other companies and individuals involved in tampering with emissions controls in connection with this investigation can contact EPA-CID at (734) 214-4913.  General environmental violations can be reported to EPA through the website https://echo.epa.gov/report-environmental-violations.

          EPA-CID investigated the matters with assistance from Homeland Security Investigations; the U.S. Department of Transportation, Office of Inspector General; and the Michigan Department of Natural Resources, Environmental Investigation Section.  Former Assistant U.S. Attorney Justin M. Presant and Assistant U.S. Attorneys Stephen Baker and Meagan Johnson prosecuted the cases.

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Updated February 23, 2024