Jail Prison federal court

California Man Sentenced For $3.5 Million Fraud Involving Counterfeit Military Electronics

Jail Prison federal court
TFP File Photo

Steve H.S. Kim, a 63-year-old resident of Alameda County, has been sentenced to three years and six months in prison for defrauding the Department of Defense’s Defense Logistics Agency (DLA). Kim’s scheme involved selling over $3.5 million worth of fan assemblies that were either counterfeit or falsely represented as new, when in fact they were used or surplus.

According to court documents, Kim controlled a company that supplied fan assemblies to the DLA. These assemblies were intended for use in military systems, making their quality and authenticity critical for operational safety.

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Kim’s company provided fan assemblies that were either counterfeit or did not meet the required standards, potentially endangering military operations.

To deceive the DLA, Kim created counterfeit labels, some of which used the trademarks of another company, and attached them to the fan assemblies. He also provided fake tracing documents to hide the true origin of the substandard equipment.

When questioned by the DLA, Kim used a false identity to further conceal his fraudulent activities.

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The case was investigated by multiple agencies, including the Defense Criminal Investigative Service (DCIS), the Department of Homeland Security Office of Inspector General (DHS-OIG), and the General Services Administration Office of Inspector General (GSA-OIG). The prosecution was handled by Assistant U.S. Attorney Colin Sampson of the Northern District of California.

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