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STEVE “THE ROACH” BROWN OF WBAI SELLS DEFECTIVE PRODUCTS TO CHILDREN. WHAT A SCUMBAG!!!!

August 22, 2015

[Federal Register: August 4, 1994]

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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 94-C0012]

S&D Importing Co., a Limited Partnership; Provisional Acceptance of

a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provisional Acceptance of a Settlement Agreement under the

Consumer Product Safety Act.

———————————————————————–

SUMMARY: It is the policy of the Commission to publish settlements

which it provisionally accepts under the Consumer Product Safety Act in

the Federal Register in accordance with the terms of 16 CFR 1118.20(e)-

(h). Published below is a provisionally-accepted Settlement Agreement

with S&D Importing Co., a limited partnership.

DATES: Any interested person may ask the Commission not to accept this

agreement or otherwise comment on its contents by filing a written

request with

the Office of the Secretary by August 19, 1994.

ADDRESSES: Persons wishing to comment on this Settlement Agreement

should send written comments to the Comment 94-C0012, Office of the

Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:

Leonard H. Goldstein, Trial Attorney, Office of Compliance and

Enforcement, Consumer Product Safety Commission, Washington, D.C.

20207; telephone (301) 504-0626.

SUPPLEMENTARY INFORMATION: (attached)

Dated: July 28, 1994.

Sadye E. Dunn,

Secretary.

Settlement Agreement and Order

  1. S&D Importing Co. (hereinafter, “S&D”), a limited partnership,

enters into this Settlement Agreement with the Consumer Product Safety

Commission, and agrees to the entry of the Order described herein. The

purpose of the Settlement Agreement and Order is to settle the

allegations of the Commission staff that S&D knowingly caused the

introduction or delivery for introduction into interstate commerce of

certain banned hazardous toys, in violation of Section 4(a) of the

Federal Hazardous Substances Act, 15 U.S.C. 1263(a).

  1. Jurisdiction
  1. The Commission has jurisdiction over S&D and the subject matter

of this Settlement Agreement pursuant to Section 30(a) of the Consumer

Product Safety Act (hereinafter, “CPSA”), 15 U.S.C. 2079(a), and

Sections 2(f)(1)(D), 4(a), and 5(c) of the Federal Hazardous Substances

Act (hereinafter, “FHSA”), 15 U.S.C. 1261(f)(1)(D), 1263(a), and

1264(c).

  1. The Parties
  1. The “staff” is the staff of the Consumer Product Safety

Commission, an independent regulatory agency of the United States

established pursuant to section 4 of the CPSA, 15 U.S.C. 2053.

  1. S&D is a limited partnership created on December 24, 1987, under

the laws of the State of New York, with its principal offices located

at 1200 Shames Drive, Westbury, New York. The sole general partner of

S&D is Gem Fulfillment Corp., 1530 McDonald Ave., Brooklyn, New York.

The president of Gem Fulfillment Corp. is David Weldler. The limited

partners of S&D are Jerry Williams and Steven Brown. S&D is engaged in

the business of importing general merchandise for resale to other

companies.

III. Allegations of the Staff

  1. In 1988, S&D imported approximately 698,000 “Santa Bear”

stuffed toy animals from China. The toys are subject to, but some

failed to comply with, the Commission’s Small Parts Regulation, 16 CFR

part 1501, in that when tested by the staff in 1990 under 16 CFR

1500.52, (a) one or more parts of some of the tested toys separated and

(b) one or more of the parts that separated from the tested toys fit

completely within the test cylinder, as set forth in 16 CFR 1501.4.

Accordingly, some of the Santa Bears present a “mechanical hazard”

within the meaning of section 2(s) of the FHSA, 15 U.S.C. 1261(s).

  1. Most of the Santa Bears identified in paragraph 5 above were

sold to the public by Raffoler, Ltd., a mail order business that is

owned by Jerry Williams and Stephen Brown and is located at the same

address as S&D.

  1. Some of the Santa Bears identified in paragraph 5 above are a

“hazardous substance” pursuant to section 2(f)(1)(D) of the FHSA, 15

U.S.C. 1261(f)(1)(D). Some of the Santa Bears identified in paragraph 5

above are also a “banned hazardous substance” pursuant to section

2(q)(1)(A) of the FHSA, 15 U.S.C. Sec. 1261(q)(1)(A); and 16 CFR

1500.18(a)(9).

  1. On November 7, 1990, the staff sent a certified letter to S&D

advising the firm that the Santa Bear contains small parts and is

considered to be a banned hazardous substance. Notice was provided that

continued sale of the product is prohibited by section 4 of the FHSA,

15 U.S.C. 1263, and is punishable by penalties described in section 5

of the Act, 15 U.S.C. Sec. 1264. At this time, S&D had an unsold

inventory of approximately 110,000 Santa Bears.

  1. On November 15, 1990, S&D attempted to return its inventory of

Santa Bears to the import agent from whom S&D had purchasedthe goods.

On November 20, 1990, the import agent advised S&D that it would not

accept return of the Santa Bears.

  1. In or around early December 1990, an employee of S&D asked a

third party to attempt to find prospective purchasers of the Santa

Bears. The third party found a prospective purchaser and so advised the

employee of S&D. The sale of the Santa Bears was consummated and S&D

received proceeds from the sale in the form of credit from the import

agent for goods previously purchased and for goods to be purchased in

the future.

  1. After receipt of the certified letter of November 7, 1990, from

the staff, as described in paragraph 8 above, S&D knowingly caused the

introduction or delivery for introduction into interstate commerce of

its remaining inventory of approximately 110,000 Santa Bears, in

violation of section 4(a) of the FHSA, 15 U.S.C. 1263(a), and for which

a civil penalty may be improved pursuant to section 5(c) of the FHSA,

15 U.S.C. 1264(c).

  1. Response of S&D Importing Co.
  1. S&D denies the allegations of the staff set forth in paragraphs

5 through 11 above, including the allegations that it has knowingly

caused the introduction into commerce of the aforesaid banned hazardous

toys and that it has violated the FHSA.

  1. Agreement of the Parties
  1. The Consumer Product Safety Commission has jurisdiction over

S&D and the subject matter of this Settlement Agreement and Order under

the following Acts: Consumer Product Safety Act, 15 U.S.C. 2051, et

seq., and the Federal Hazardous Substances Act, 15 U.S.C. 1261, et seq.

  1. S&D agrees to pay to the Commission a civil penalty in the

amount of ONE HUNDRED AND SEVENTY FIVE THOUSAND DOLLARS ($175,000).

Payment of the civil penalty shall settle fully all claims by the

United States Gvernment arising out of the staff’s allegations set

forth in paragraphs 5 through 11.

  1. The Commission does not make any determination that S&D

violated the FHSA. The Commission and S&D agree that this Settlement

Agreement is entered into for the purposes of settlement only.

  1. Upon final acceptance of this Settlement Agreement by the

Commission and issuance of the Final Order, S&D knowingly, voluntarily

and completely, waives any rights it may have in this matter (1) to an

administrative or judicial hearing, (2) to judicial review or other

challenge or contest of the validity of the Commission’s actions, (3)

to a determination by the Commission as to whether S&D failed to comply

with the FHSA as alleged, and (4) to a statement of findings of fact

and conclusions of law.

  1. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b),

this matter shall be treated as if a compliant had issued; and, the

Commission may publicize the terms of the Settlement Agreement and

Order.

  1. Upon provisional acceptance of this Settlement Agreement and

Order by the Commission, this Settlement Agreement and Order shall be

placed on the public record and shall be published in the Federal

Register in accordance with the procedures set forth in 16 CFR

118.20(e)-(h). If the Commission does not receive any written request

not to accept the Settlement Agreement and Order within 15 days, the

Settlement Agreement and Order will be deemed finally accepted on the

16th day after the date it is published in the Federal Register.

  1. The parties further agree that the Commission shall issue the

attached Order incorporated herein by reference; and that a violation

of the Order shall subject S&D to appropriate legal action.

  1. No agreement, understanding, representation, or interpretation

not contained in this Settlement Agreement and Order may be used to

vary or to contradict its terms.

  1. The provisions of the Settlement Agreement and Order shall

apply to S&D and each of its successors and assigns.

  1. By their signatures set forth below, Raffoler, Ltd., a

corporation, and Jerry Williams and Stephen Brown, individually, agree

to serve as guarantors of payment to the Commission of the civil

penalty specified in paragraph 14 of this Settlement Agreement.

Respondent S&D Importing Co.

By: GEM Fulfillment Corp. General Partner

Dated: June 14, 1994.

David Weldler,

President.

Guarantors of Payment of Civil Penalty

Dated: June 9, 1994.

Jerry Williams,

Individually, and as an officer of Raffoler, Ltd.

Dated: June 9, 1994.

Stephen Brown,

Individually, and as an officer of Raffoler, Ltd.

Commission Staff

David Schmeltzer,

Assistant Executive Director Office of Compliance and Enforcement.

Eric L. Stone,

Acting Director, Division of Administrative Litigation Office of

Compliance and Enforcement.

Leonard H. Goldstein,

Trial Attorney, Division of Administrative Litigation, Office of

Compliance and Enforcement.

Order

Upon consideration of the Settlement Agreement entered into between

S&D Importing Co., a limited partnership, and the Consumer Product

Safety Commission; and the Commission having jurisdiction over the

subject matter and S&D Importing Co.; and it appearing that the

Settlement Agreement is the public interest, it is

Ordered, That the Settlement Agreement be and hereby is accepted,

as indicated below; and it is

Further ordered, That, within twenty (20) days after service of the

Final Order of the Commission accepting the Settlement Agreement, S&D

Importing Co. shall pay to the Commission a civil penalty in the amount

of one hundred and seventy-five thousand dollars ($175,000). Payment of

the civil penalty shall settle fully all claims of the United States

government arising out of the allegations of the Commission’s staff set

forth in paragraphs five through eleven of the Settlement Agreement.

Provisionally accepted and Provisional Order issued on the 28th

day of July, 1994.

By order of the Commission.

Sadye E. Dunn,

Secretary, Consumer Product Safety Commission

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