Man pleads guilty to selling counterfeit parts for nuclear submarine to Pentagon

Steve H.S. Kim, a 63-year-old businessman from Alameda County, has admitted guilt in a federal court for attempting to defraud the Department of Defense’s Defense Logistics Agency (DLA) by selling counterfeit fan assemblies valued at over $3.5 million. These assemblies were falsely represented as new.

Court records reveal that Kim engaged in selling counterfeit and used fan assemblies to the DLA, misleading the agency by attaching counterfeit labels to these products. Some labels bore the trademarks of another company. When questioned about the origins of these fan assemblies, Kim further obscured his fraudulent activities by providing the DLA with falsified tracing documents, often signed under a false identity.

The potential installation of these counterfeit fans in critical military equipment, including a nuclear submarine’s electrical components, an aircraft’s laser system, and a surface-to-air missile system, underscores the gravity of the threat to national security.

Special Agent in Charge Tatum King of Homeland Security Investigations (HSI) highlighted the case’s significance, noting the collaborative efforts of HSI, NCIS, DCIS, and Army CID, in partnership with the Justice Department, to address this national security and supply chain integrity threat.

The sentencing for Kim is set for July 17 by Judge Gilliam. Kim faces up to 20 years in prison for wire fraud and an additional 10 years for trafficking in counterfeit goods.

BY BRIAN CHOI, JUNHAN PARK    [ichoi@koreadaily.com]