New Jersey Appliance Importer Admits Failing to Report Hazardous Air Conditioners

Royal Sovereign International’s guilty plea and $16 million civil settlement underscore the Consumer Product Safety Act’s enforcement and the consequences of withholding safety information.

Royal Sovereign International’s admission of willfully concealing defect information from federal regulators, following fires linked to its portable air conditioners and one fatality, highlights the critical role of timely reporting under the Consumer Product Safety Act in safeguarding public safety.

Royal Sovereign International Inc. (also known as Royal Centurian Inc.), a New Jersey-based importer and seller of office and home appliances, pleaded guilty on August 5, 2025, to a criminal information under the Consumer Product Safety Act (CPSA). The company admitted it “willfully failed” to report to the U.S. Consumer Product Safety Commission (CPSC) information about portable air conditioners tied to over 40 fires and one death. Under the plea, Royal Sovereign agreed to pay $395,786.48 in restitution to victims and entered a civil settlement requiring a $16,025,000 penalty—the maximum permitted under the CPSA.

Between 2008 and 2014, the company imported and distributed more than 33,000 units of portable air conditioners nationwide. Despite receiving numerous consumer complaints and lawsuits during that period, Royal Sovereign misled CPSC in November 2010 by claiming awareness of only two fire incidents and asserting the product line had been discontinued. In reality, it faced at least 16 known fire events while continuing sales. The formal plea was entered in the U.S. District Court for the District of New Jersey.

The air conditioners contained a defective drain motor prone to electrical shorting, resulting in uncontrollable fires. A 2021 recall—triggered after reports of burning units—eventually identified the hazard, but only after a tragic 2016 incident in which a New York woman died of smoke inhalation and her two children were injured when their Royal Sovereign unit ignited. By failing to “immediately” notify CPSC of the substantial product hazard, Royal Sovereign violated its legal duty under the CPSA, which mandates prompt disclosure of any defect posing an unreasonable risk of serious injury or death.

As part of the civil consent decree, all but $100,000 of the $16 million penalty was suspended in recognition of the company’s limited ability to pay, contingent on compliance with new reporting requirements. Royal Sovereign—whose former CEO, Takwan Lim, passed away in 2023—has permanently ceased all consumer product operations. Before any resumption of marketing, sales, or distribution, the company and associated individuals must implement internal controls to ensure timely, truthful, complete, and accurate reporting to CPSC.

The CPSA grants the CPSC authority to enforce safety standards and require manufacturers and distributors to report hazards immediately upon discovery. This case follows a 2020 settlement in which Takwan Lim, on behalf of a related entity, resolved allegations that portable ceramic heaters posed a fire risk. Despite that earlier action, Royal Sovereign’s subsequent conduct with its air conditioners demonstrated the consequences of noncompliance: criminal prosecution, substantial financial penalties, and mandated restitution.

Individuals who suffered bodily injury or property damage from fires involving models PAC-3012, ARP-3012, or ARP-3014—and who have not yet received compensation—may seek restitution by contacting the Department of Justice at victimassistance.fraud@usdoj.gov by September 5, 2025. Details on the 2021 recall are available through the CPSC at www.cpsc.gov/Recalls/2022/Royal-Sovereign-Recalls-Portable-Air-Conditioners-Due-to-Fire-and-Burn-Hazards-One-Death-Reported. For a broader overview of the Consumer Protection Branch’s enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.