Hampton-based business owner, four employees plead guilty to fraud scheme

Hampton-based business owner, four employees plead guilty to fraud scheme

NEWPORT NEWS, Va. — A Hampton-based enterprise proprietor and 4 staff have all pleaded responsible to participating in an intensive procurement fraud scheme involving hundreds of thousands of in Division of Protection contracts and different federal authorities businesses.

In line with courtroom paperwork, from 2011 to 2018, Iris Kim, Inc., (aka I-Tek) proprietor Beyung S. Kim, 61, of Newport Information, and staff Seung Kim, 30, of Newport Information, Dongjin Park, 53, of Yorktown, Chang You, 61, of Yorktown, Pyongkon Pak, 53, of Toano, and Li-Ling Tu, 57, of China, engaged in a conspiracy and scheme associated to sure authorities contracts for which I-Tek acted as a provider of products.

These included objects for the Marine Corps, Military, Coast Guard, and the Nationwide Guards of varied states, amongst different businesses.

The Justice Division stated the defendants “acted to defraud the U.S. and commit different substantive offenses by fraudulently importing items into the U.S. that have been made in China, in violation of the phrases of those contracts.”

“They then falsely relabeled these items as in the event that they have been made within the U.S. Kim and his staff additionally acted by a separate nominee firm to hide the importing of products from China and put in a nominee officer of I-Tek so as to have the ability to fraudulently qualify for sure set-aside contracts,” the information launch stated. 

“The conspirators additionally submitted false paperwork and additional falsely labeled the worth of the products imported into the U.S. in order to keep away from greater duties and taxes.”

They’re scheduled to be sentenced mid-March. Every defendant faces a most time period of 5 to seven years in jail.

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