The Clean Air Act and its implementing regulations established a schedule to phase out the production and importation of ozone-depleting substances, including R-22, beginning in 2002, with a complete ban starting in 2030. As part of these regulations, the federal government issued baseline allowances for the production and importation of HCFC-22 to individuals and companies. In order to legally import HCFC-22, one must hold an unexpended consumption allowance.

According to court records and proceedings, Garcia was the senior vice president of Marcone’s Heating and Cooling division responsible for executing legal purchases and sales of refrigerant gas. Instead Garcia engaged in a pattern of conduct to purchase and sell black market HCFC-22. The investigation revealed that he would routinely seek out and arrange the purchase of HCFC-22 from various importers who did not hold the required unexpended consumption allowances, totaling approximately 55,488 kilograms of restricted HCFC-22, with a fair market value of approximately $639,458. The refrigerant gas was distributed by Marcone throughout the United States.

Officials said this matter and others involving the smuggling and distribution of ozone-depleting substances are being investigated through a multi-agency initiative known as Operation Catch-22. Operation Catch-22 has, to date, included the successful conviction of nearly a dozen individuals and corporations.

Publication date: 6/18/2012