Hino Motors Ltd., a subsidiary of Toyota, has been sentenced by U.S. District Court Judge Mark A. Goldsmith for the Eastern District of Michigan after pleading guilty to a multi-year conspiracy involving emissions fraud and smuggling. The court imposed a $521.76 million criminal fine and placed Hino on a five-year probation period during which it is barred from importing its manufactured diesel engines into the United States. Additionally, Hino must implement an ethics program and comply with reporting requirements. A forfeiture money judgment of $1.087 billion was also ordered against the company.
Court records indicate that between 2010 and 2019, engineers at Hino Motors submitted falsified engine certification applications, violating the Clean Air Act. The misconduct included altering emission test data, conducting improper tests, fabricating data without actual testing, submitting fraudulent carbon dioxide emissions data, and failing to disclose software affecting emission control systems. Over 105,000 non-compliant engines were imported and sold by Hino from 2010 to 2022.
"Hino unlawfully imported over 105,000 engines that did not comply with U.S. emissions standards and lied about what it was doing," stated Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). "We are committed to upholding the rule of law by prosecuting fraud and enforcing our Clean Air Act emissions standards."
Acting U.S. Attorney Julie Beck for the Eastern District of Michigan emphasized their dedication to holding corporations accountable for deceiving government regulators and selling fraudulent goods to American consumers.
Acting Assistant Administrator Jeffrey Hall for EPA’s Office of Enforcement and Compliance Assurance remarked on Hino's false certification under the Clean Air Act: "Today’s plea and sentencing demonstrates that companies who intentionally evade our nation’s environmental laws...deserve punishment and will be held criminally accountable."
The FBI's Criminal Investigative Division Acting Assistant Director James C. Barnacle Jr. commented on Hino's admission: "By pleading guilty, Hino Motors, Ltd. has admitted to orchestrating a deliberate and years-long fraud scheme that put profit over principle."
The investigation was conducted by special agents from EPA’s Criminal Investigation Division and FBI’s Detroit Field Office, with prosecution handled by Senior Trial Attorney Banumathi Rangarajan of ENRD’s Environmental Crimes Section along with Assistant U.S. Attorneys Andrew J. Yahkind and Gjon Juncaj.