North Carolina Auto Parts Dealer and Owner Pays $10M for Emissions Abatement Devices
Rudy’s Performance Parts Inc., a North Carolina-based auto parts manufacturer and retailer, and its owner, Aaron Rudolf, agreed to pay $10 million in fines and penalties for manufacturing, selling, and installing emissions-defeating devices.
These devices are used to disable or remove emission controls from vehicles, in violation of the Clean Air Act.
Rudy pleaded guilty in federal court to conspiracy to violate the Clean Air Act. US District Court Judge Trevor N. McFadden fined the company $2.4 million in criminal fines and imposed three years of federal probation as part of the plea deal.
Rudolph, the owner and CEO, previously pleaded guilty to similar charges in April, involving tampering with air pollution controls on about 300 diesel trucks. Rudolph was sentenced to three years probation and ordered to pay a $600,000 criminal fine.
In addition to the criminal penalties, the Department of Justice, on behalf of the Environmental Protection Agency (EPA), filed a civil lawsuit in 2022 against Rudy and Rudolf. The lawsuit cited violations of the Clean Air Act for the manufacture, sale, and installation of defeat devices, as well as failure to adequately respond to legal requests for information from the EPA.
Under a consent decree filed on July 29, 2024, Rudy and Rudolf agreed to pay a civil penalty of $7 million. The law also prohibits them from making, selling, offering for sale, or installing the defeated devices in the future. They are also prohibited from transferring intellectual property that would allow others to make or sell the stolen devices and from profiting from businesses selling these illegal devices. This decision is still awaiting approval by the court.
Assistant Attorney General Todd Kim emphasized the dangers of defeat devices, saying they can lead to high levels of pollution that pose health risks and damage the environment. EPA Assistant Administrator David M. Uhlmann and US Attorneys Matthew M. Graves and Sandra J. Hairston also highlighted the importance of enforcing the Clean Air Act to protect public health and hold violators accountable.
According to court documents, Rudy’s failed to sell devices known as “disabling tuners,” which interfere with vehicle on-board diagnostic systems (OBDs) to disable emissions controls. The company’s best-selling products include the Mini Maxx and XRT Pro tuning machines. After the original manufacturer stopped production, the Rudys conspired with others to make imitation versions of these tuners and continue to sell them.
From 2014 to mid-2019, Rudy’s and Rudolf sold more than 250,000 products designed to remove or disable emissions controls, generating an estimated $33 million in revenue. These products have contributed to a huge increase in traffic pollution, adding the pollution equivalent of more than 1 million cars to US roads.
EPA’s Criminal Investigation Division investigated the criminal case, and a consent decree was filed in the US District Court for the Middle District of North Carolina. The consent decree is subject to a 30-day public comment period and court approval.
