FBI DIRECTOR SAYS HALF BUREAU’S 5,000 COUNTERINTELLIGENCE CASES ARE RELATED TO CHINA
Under federal law, government contractors are supposed to follow strict guidelines about where their inventory is manufactured, and China isn’t on the list of approved countries of origin.
“The indictment alleges that while representing that none of SEG’s services and products offered to federal agencies under the relevant contract were manufactured in China, Morgan knowingly provided services and products that [he] knew was manufactured in China,” the DOJ said in a statement.
SEG’s body armor division is accused of selling more than $650,000 worth of Chinese ballistic vests, helmets as well as other protective gear to the U.S. government between 2014 and 2019.
In one instance, Morgan allegedly told the Navy that a shipment was late because that he was awaiting back-ordered materials to manufacture helmets at an SEG Armor factory that he said he had in Virginia. According to the DOJ, he received a lot more than $127,000 from the Navy – and paid a Chinese helmet manufacturer about $68,000 on a single day.
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Investigators visited an SEG Armor address in Virginia and found “no manufacturing facility” on the wooded property, according to court documents.
SEG failed to immediately respond to a request for comment.
Morgan faces two counts of wire fraud, all of which has a maximum sentence of up to 20 years in federal prison.
The federal General Services Administration (GSA) may be the procurement arm of the us government, connecting contractors with government agencies. Under the Trade Agreements Act, all services and products on GSA contracts must certanly be manufactured or “substantially transformed” in approved countries.