Fort Belvoir, Va. –
DCAA auditor Gina Vaughan and Supervisory Auditor, Sandy Porter assisted in the investigation of Iris Kim, Inc., (I-Tek).
On August 18 and August 19, 2021 Beyung S. Kim, the owner of I-Tek was sentenced to 58 months in prison along with four of his employees who were sentenced to a combined 93 months in prison for engaging in a conspiracy and scheme related to fraudulently imported goods.
From 2011 to 2018, I-Tek, Mr. Kim and four employees engaged in a conspiracy and scheme related to contracts for which I-Tek acted as a supplier of goods for the Marine Corps, Army, Coast Guard, and the National Guards of various states, among other agencies. The defendants obtained government contracts that had certain set-aside preferences and source-of-good requirements. The conspirators acted to defraud the U.S. and commit other substantive offenses by fraudulently importing goods into the U.S. that were made in China and then falsely relabeling these goods as if they were made in the U.S., which violated terms of the contracts. The defendants also created a false company to conceal the imports and to qualify for set-aside preferences.
Over a period of four years, DCAA’s auditors assisted in the investigation by analyzing bank records, reviewing import records, analyzing payment records, and preparing numerous damages models used in sentencing. The auditors also briefed contracts and delivery orders for pertinent criteria and reviewed the contractor’s accounting, payroll and timekeeping system data.
Read the full Department of Justice press release here.