Alameda County Man Pleads Guilty to Selling Millions in Counterfeit Parts for U.S. Military Equipment

An Alameda County man, Steve H.S. Kim, has pleaded guilty to wire fraud and trafficking in counterfeit goods after selling millions of dollars worth of counterfeit parts for U.S. nuclear submarines, missiles, and aircraft laser systems. The U.S. Department of Justice announced the guilty plea on Thursday.

According to federal prosecutors, Kim sold approximately $3.5 million in counterfeit fan assemblies to the U.S. Department of Defense’s Defense Logistics Agency. He falsely claimed that these fan assemblies were new, when in reality, they were used or surplus items. To deceive the government, Kim employed counterfeit labels and forged tracing documents under a false identity.

The Department of Justice revealed that some of the counterfeit fan assemblies were either installed on or intended for use with electrical components of a nuclear submarine, an aircraft’s laser system, and a surface-to-air missile system.

Federal officials expressed their concern over the scheme, particularly highlighting the potential risks it posed to U.S. military troops serving abroad. One homeland security official described the impact on troops as “especially alarming.”

U.S. Attorney Ismail Ramsey for the Northern District of California emphasized the seriousness of defrauding the military, stating, “Swindling our military is a sure way to find oneself in jail.” Ramsey assured that his office remains vigilant in identifying fraudsters and prosecuting those who compromise the safety of service members or hinder military readiness.