An Alameda County man admits to selling millions of dollars’ worth of counterfeit mechanical parts to the U.S. Department of Defense, posing significant risks to national security.

Selling Counterfeit Parts

Steve H.S. Kim, 63, confessed to selling counterfeit fan assemblies, misrepresenting used and surplus items as new to the Defense Logistics Agency. These counterfeit products were intended for critical military equipment, including a nuclear submarine, an aircraft laser system, and a surface-to-air missile system.

Fraudulent Practices Exposed

Kim’s deception extended beyond selling counterfeit parts; he also falsified labels and tracking documents to conceal the true nature of the goods. As a result, the Department of Defense was defrauded of $3.5 million.

Legal Consequences

U.S. Attorney Ismail Ramsey emphasized the severity of Kim’s actions, stating that defrauding the military jeopardizes national security and readiness. Kim faces a maximum sentence of 30 years in prison for wire fraud and trafficking in counterfeit goods. His sentencing is scheduled for July 17.

Upholding Military Integrity

This case underscores the ongoing efforts to safeguard the integrity of military supply chains and hold accountable those who seek to exploit them for personal gain.

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