Contractor and Employees Sentenced for Procurement Fraud Scheme

by founder on May 20, 2022 - ##contractor  ##hampton  ##import  ##china  ##US 


  • Contractor's Company Name Iris Kim, Inc., corporation
  • Contractor's First Name beyung
  • Contractor's Last Name kim

Location of Fraud

  • City/Town/Village Hampton
  • State/Territory Virginia [map]
  • Country United States

General Information

  • What type of work was the contractor performing General Contractor
  • Did the contractor have a local license? NO
  • Is there a District Attorney investigating the contractor? NO

The Hampton-based U.S. defense contractor, Beyung S. Kim was sentenced to 58 months in prison, with his four employees to a combined 93 months in prison, for engaging in an extensive procurement fraud scheme involving more than $7 million in government contracts targeting the U.S. Department of Defense and other federal government agencies. According to Raymond Villanueva, Special Agent in Charge of U.S. Customs and Border Protection, the Iris Kim, Inc. corporation defrauded the U.S. government of millions of dollars and violated its contract by attempting to use substandard goods made in China, then relabeling them as 'Made in the U.S." in order to make a hefty profit.

The conspirators acted to defraud the U.S. and commit other substantive offenses by fraudulently importing goods made in China into the US in violation of the terms of these contracts. They then falsely labeled these goods as being made in the United States. Kim and his employees also used a separate nominee company to conceal the importation of Chinese goods. The conspirators also published false documents and falsely classified the prices of goods imported into the United States in order to avoid higher duties and taxes.