EPA v. Punch It

Case summary

This case involves allegations that Punch It Performance and Tuning, Michael Paul Schimmack, and other companies and individuals close to Schimmack (collectively, ?PIP?) violated the Clean Air Act and fraudulently transferred assets under the Federal Debt Collection Procedures Act. This case resolution comes at the outset of a new National Compliance Initiative for the EPA, entitled Stopping Aftermarket Defeat Devices for Vehicles and Engines. To report a violation, send an email to tampering@epa.gov or submit the information through the EPA?s website. After the EPA inspected one of these companies, Schimmack led the EPA to believe that he was no longer manufacturing and selling defeat devices. Yet Schimmack continued to manufacture and sell the same or similar products under the name of REI Research PIP manufactured and sold more than 20,000 aftermarket defeat devices. These products were designed to bypass, defeat, or render inoperative emission controls. The aftermarket products at issue include hardware components, such as straight pipes, and electronic tuning software (i.e., ?tunes?) that enables the removal of filters, catalysts and other critical emissions controls. These tuning products also reprogrammed the engine?s fueling strategy to increase power, fuel economy, or both, but at the expense of higher emissions of regulated air pollutants. PIP?s products were designed for use with numerous models of vehicles, primarily diesel trucks manufactured by Ford, General Motors, and Fiat Chrysler. EPA also sought recovery, under the Federal Debt Collection Procedures Act, of the value of assets fraudulently transferred to Schimmack, his wife, and his sister. EPA asserted that after the EPA provided notice in 2016 of its intent to take enforcement action, PIP transferred real estate and large sums of money to one or more of the individual defendants in their personal capacities. PIP has represented to the United States that, as of March 10, 2017, they have stopped manufacturing and selling defeat devices. Today?s vehicles emit far less pollution than vehicles of the past. This is made possible by careful engine calibrations, and the use of filters and catalysts in the exhaust system. EPA testing has shown that a truck?s emissions increase drastically (tens or hundreds of times, depending on the pollutant) when its emissions controls are removed. Even when the filters and catalysts remain on the truck, EPA testing has shown that simply using a tuner to recalibrate the engine (for the purpose of improving fuel economy) can triple emissions of NOx. NOx emissions pose significant health and environmental concerns. Oxides of nitrogen form when fuel burns at high temperatures. Oxides of nitrogen also contribute to the formation of particulate matter which can cause asthma, difficult or painful breathing, and chronic bronchitis, especially in children and the elderly. The key health effects categories associated with ambient particulate matter include premature mortality, aggravation of respiratory and cardiovascular disease, aggravated asthma and acute respiratory symptoms including aggravated coughing and difficult or painful breathing, chronic bronchitis and decreased lung function that can be experienced as shortness of breath. Symptoms of immunological effects such as wheezing and increased allergenicity have also been observed. Diesel exhaust particulate matter is of special concern. PIP will pay a civil penalty of $850,000 to the US Treasury, as the company has a limited financial ability to pay a higher penalty. In order to pay this penalty, Defendants have represented that they will sell residential real estate properties that they purchased with profits made.

Defendants (9)

• D N S Enterprises of Florida, Inc. d/b/a Punch ItNamed in complaintNamed in settlement
• Punch It Performance and Tuning LLCNamed in complaintNamed in settlement
• Punch It Performance LLC
• Michael SchimmackNamed in complaintNamed in settlement
• Punch It Products LLC
• Punch It Properties LLC
• REI Research Group, IncNamed in complaintNamed in settlement
• Vanessa SchimmackNamed in complaintNamed in settlement
• Lori BrownNamed in complaintNamed in settlement

Facilities (2)

• PUNCH-IT PERFORMANCE, LLC

  3485 VINYARD CIRCLE, DELTONA, FL, 32738

  Registry ID: 110066856316

• PUNCH-IT PERFORMANCE

  600 COURTLAND BLVD, DELTONA, FL, 32738

  Registry ID: 110069994034

Statutes cited

• CAA 203 — Prohibited Acts - Motor Vehicle & Motor Vehicle Engines

Enforcement conclusions (1)

• Punch Itentered 2020-04-03

  Primary law: CAA

  Federal penalty: $850,000

Timeline (5 milestones)

• 2018-03-05Referred To Dept Of Justice
• 2018-03-28Enforcement Action Data Entered
• 2019-06-14Complaint Filed With Court
• 2020-01-10Final Order Lodged
• 2020-04-03Final Order Entered