Man Pleads Guilty to Selling Defense Department $3.5 Million Worth of Bogus Fans

A man in San Francisco’s East Bay sold the U.S. Defense Department $3.5 million worth of fan assemblies to cool down equipment that were counterfeit or misrepresented as new, according to a U.S. Attorney’s Office press release. Steve H.S. Kim, 63, of Alameda County pleaded guilty March 28 to defrauding the department’s Defense Logistics Agency (DLA). According to court documents, Kim claimed the fan assemblies were new, but in fact they were used and surplus. He tricked the DLA by creating counterfeit labels that he attached to the fans and provided fake tracing documents when questioned about the origin of the assemblies, according to the press release....