WASHINGTON (LN) — A New Jersey appliance company was sentenced Monday to pay an $8 million criminal fine and $395,786 in restitution after admitting it willfully concealed from federal safety regulators that its imported air conditioners were catching fire, a defect allegedly linked to more than 40 fires and one death.
Royal Sovereign International Inc., which also did business as Royal Centurian Inc., pleaded guilty in August 2025 to a criminal information charging the company under the Consumer Product Safety Act for failing to immediately report the hazard to the U.S. Consumer Product Safety Commission.
The company imported and sold more than 33,000 air conditioners manufactured in China between 2008 and 2014. The units contained a faulty drain motor that could short circuit, causing them to catch fire and burn uncontrollably.
In November 2010, Royal Sovereign told the CPSC it was aware of only two fire incidents and was no longer selling the units. In reality, according to the criminal information, the company knew of at least 16 fires and continued to sell the air conditioners.
A woman died in August 2016 from smoke inhalation and her two children were injured after their Royal Sovereign air conditioner caught fire, according to the CPSC recall notice. The company did not recall the defective models until 2021.
Separate from the criminal case, Royal Sovereign agreed to a civil settlement with the United States that included a $16,025,000 civil penalty, the maximum authorized by the CPSA. Combined with the criminal fine and restitution, the company's total exposure exceeds $24 million.
The case was prosecuted by Trial Attorney Ethan Carroll of the Criminal Division's Fraud Section, with assistance from Renee McCune of the CPSC's Office of the General Counsel and Assistant U.S. Attorney Fatime Meka Cano for the District of New Jersey.
The company has permanently ceased all operations involving the marketing, sale or distribution of consumer products.