2 Firms in Orange Are Accused of Falsifying 7,900 Auto Smog Tests

LOS ANGELES — Two Orange County automotive testing labs, along with their presidents, managers and 20 employees, were accused Thursday in a federal indictment of submitting false emission test results for 7,900 imported luxury cars to the Environmental Protection Agency.

Federal authorities immediately issued arrest warrants for Andrew Krumm of Garden Grove, president of Import Certification Lab Inc., and Dennis Holding of Los Angeles, president of ICL’s subsidiary, Import Automotive Technologies Inc. Both companies are located in Orange.

The 17-count indictment also named five laboratory managers and 20 other employees.

“This is clearly the first time we have reached out and indicted so many employees,” said Assistant U.S. Atty. Ralph F. Hirschmann, who is prosecuting the case. He said the indictment stemmed from a nine-month investigation by the EPA, Office of Inspector General and the FBI.

The indictment charges the two firms with cheating on testing procedures and falsifying and fabricating test results submitted to the EPA.

The labs charged customers between $2,000 and $7,500 to install emission-control equipment in the cars and test the equipment between 1983 and 1986, according to the indictment.

The cars involved were expensive European “gray market” cars, including Porsches, Ferraris, Rolls-Royces and BMWs, the indictment said. “Gray market” cars are manufactured for sale in Europe and lack the emission-control equipment required for cars driven in the United States.

Under federal law, all imported cars must meet federal air pollution standards.

A spokeswoman for Import Certification Lab said Krumm was not available for comment, but she added that the company is still open for business.

If convicted, each defendant faces a maximum penalty of five years in prison and a $250,000 fine on each count. The corporations face a maximum fine of $500,000 each per count, according to Hirschmann.

Thursday’s indictment was the fourth federal criminal prosecution involving Southern California testing laboratories. The operators of two other Orange County firms were indicted and convicted on similar charges in 1985 and 1986.