Government Contractors Settle After Providing China-Made Containers

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Even the U.S. national authorities sometimes has occupation buying American products.

The Department of Defense contracted for its agencies to bargain American-made materials oregon materials manufactured successful specified allied countries, specified arsenic South Korea.

But now, done a settlement, 2 companies volition jointly wage $904,000 to the national authorities to resoluteness allegations that they provided the Department of Defense with shipping containers made successful China and/or made from Chinese steel, successful usurpation of the False Claims Act.

In a associated contract, the companies, SoNo International LLC and Ark Capital Equipment LLC allegedly had a third-party institution alteration the identifying plates connected 100 shipping containers made successful China to marque them look arsenic if they were made successful South Korea. In different contracts, SoNo’s supplier utilized Chinese steel, and SoNo and Ark allegedly failed to observe the deception earlier providing the United States subject those containers, according to a connection from U.S. Attorney Jennifer Arbittier Williams.

Now, SoNo and Ark person signed an administrative statement with the Defense Logistics Agency that calls for amended grooming and reporting successful transportation with authorities procurement.

The third-party institution that physically switched the plates has reached a abstracted statement with the United States providing that it volition bid its employees to comply with customs rules and regulations and amended their consciousness of buying American.

The Department of Defense awarded SoNo, of Weston, Connecticut, 7 contracts betwixt 2020 and 2022, totaling implicit $10 million.

Ark Capital Equipment of Staten Island, New York, shows nary grounds of contracts connected its own, but the institution did person a $21,190 indebtedness from the Small Business Administration’s Office of Capital Access successful June, 2020, arsenic portion of the Paycheck Protection Program established by the CARES Act, according to authorities declaration records.

The probe was conducted arsenic portion of the U.S. Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force, with investigators from the Defense Criminal Investigative Service, the Army Criminal Investigation Division, and the Air Force Office of Special Investigations, and assistance from Homeland Security Investigations and the U.S. Customs and Border Protection’s Regulatory Audit and Agency Advisory Services. Assistant U.S. Attorney Paul W. Kaufman handled the probe and settlement.

The claims resolved by the colony are allegations only; determination has been nary determination of liability.

“Americans person the close to cognize that their taxation dollars are being spent to enactment American jobs and American policies,” U.S. Attorney Williams said successful a statement. “When the Department of Defense purchased this worldly for our warfighters, SoNo agreed to get worldly from and enactment manufacturers successful America oregon our allied nations. The United States Attorney’s Office is acceptable to analyse and punish contractors who bash not travel these wide rules.”

Beth Brelje


Beth Brelje is an investigative writer covering Pennsylvania politics, courts, and the commonwealth’s astir absorbing and sometimes hidden news. Send her your communicative ideas: [email protected]