DENVER (Legal Newsline) — The U.S. Department of Justice
announced Dec. 1 that Zen Magnets LLC, a Colorado company, has been ordered by a federal court to pay
$5.5 million in penalties after allegations of selling powerful small magnets
that had already been recalled by another company.
Most of the judgment will be
suspended due to the company’s inability to pay.
“Selling potentially dangerous
products that another company had recalled put consumers at risk,”
said principal deputy assistant attorney general Benjamin C. Mizer, head of the
Justice Department’s Civil Division.
“The civil penalty imposed
by the district court indicates that violations like this will not be taken
lightly. The Department of Justice will
continue to work with the CPSC to protect consumers by keeping recalled
products out of the stream of commerce.”
Zen Magnets allegedly purchased hundreds of thousands of
magnets at a substantial discount from a company that had recalled them from
consumers. The magnets at issue can cause health problems if ingested and also can
be attracted to each other and cause internal damage, the EEOC says.
“Protecting consumers, especially
children, from a product that can cause harm and even death is what the
Colorado U.S. Attorney’s Office and the Department of
Justice as a whole are all about,” said acting U.S.
attorney Bob Troyer for the District of Colorado. “The civil penalty leveled
by Judge Christine Arguello provides a more than appropriate deterrence to companies to
ensure their products are safe.”