NEWPORT NEWS, Va. (WAVY)- – The Virginia Department of Justice said federal charges were unsealed Wednesday in a case involving a Hampton-based business, its owner, and employees.
The charges are in reference to their alleged involvement in a fraud scheme involving millions of dollars in government contracts targeting the Department of Defense and other government agencies.
According to allegations, the DOJ says from at least 2011 through at least 2018, owner 61-year-old Beyung S. Kim, of Newport News, and employees Seung Kim, Dongjin Park, Chang You, Pyongkon Pak, and Li-Ling Tu engaged in a conspiracy scheme related to certain government contracts at Iris Kim, Inc., also known as I-Tek.
Documents revealed I-Tek acted as a supplier of goods, including items for the U.S. Marine Corps, U.S. Army, U.S. Coast Guard, and the National Guards of various states, among other agencies, the DOJ said in a press release.
Based on invoices submitted from the business, the United States paid I-Tek approximately $8.1 million from around January 2012 through about December 2018.
The Department of Justice said the U.S. paid I-Tek approximately $24 million for the sum of the contracts I-Tek supplied during this same time period, with over $20 million resulting from contracts where I-Tek obtained goods from China.
According to court records, the contracts had certain set-aside preferences and a source of goods requirements.
The indictment alleges that the defendants acted to defraud the United States by fraudulently importing goods into the United States that were made in China, in violation of the terms of these contracts.
Evidence has shown the defendants then falsely relabeled these goods as if they were made in the United States.
According to the DOJ, the indictment also alleges that the defendants acted through a separate nominee company to cover the importation of goods from China and installed a nominee officer of I-Tek in order to fraudulently qualify for certain set-aside contracts.
The DOJ says the U.S. Small Business Administration’s Office of the Inspector General and the U.S. Department of State assistance to this case.
- Re-learning to breathe: German clinic helps COVID long haulers
- Truck driver arrested in Rhode Island after police find missing teen girl in sleeping compartment
- Vice President Harris sits at counter where Greensboro Four made history
- Crash shuts down portion of Hampton Boulevard in Norfolk
- Virginia Zoo in Norfolk thankful for support and looking to re-open more areas on the property