Defendants are ordered to pay more than $8.5 million in restitution, civil penalties
The Texas Attorney General’s Office today filed an agreed final judgment and permanent injunction that resolves the state’s legal action against 1SolTech Inc. and its three principals, Sandy Fardi, Hossein “Zak” Fardi and Ali Enrique Razavi. Under the agreed judgment, filed in Travis County District court, the defendants are ordered to cease making misrepresentations on the geographical origin and certifications of their solar panels. 1 SolTech will pay $5.8 million in civil penalties and attorney’s fees, as well as more than $2.7 million in restitution to affected consumers.
The state filed a petition against 1 SolTech and the three other defendants in September 2013 for falsely claiming its solar panels were manufactured in the United States, when in reality the solar panels were imported from China. According to state investigators, the defendants unlawfully labeled the panels with “Made in the USA” stickers and shipped the Chinese panels to buyers. Among the customers was the U.S. Government, which installed the panels on military bases and airports. American-made materials are legally required to be used for these taxpayer-funded projects.
Further, the state determined that the solar panels sold by defendants represented a fire hazard, since they were not certified to conform to the required safety and performance standard for solar panels in the US, UL 1703. The company is required to notify customers about this risk.
After filing bankruptcy in October 2014, 1 SolTech, Inc. unsuccessfully sought to enjoin the state’s lawsuit.
To see a copy of the judgment filed click here: https://www.texasattorneygeneral.gov/files/epress/State_v._1_SolTech_Inc._et_al._AFJPI.pdf