2020-07-10

“Made in China” sold as”Made in America”, CEO of US anti-contractor sued

By yqqlm yqqlm

[Text/Observer Net Qi Qian]”Buy American goods and hire Americans.” Since he took office, Trump shouted the slogan”America first”, and federal agencies followed the call to play”model students.””——Priority to purchase products made in the United States. However, it turns out that this is not a simple matter.

The U.S. Department of Justice’s website reported on July 7 that the Maryland District Court in the United States recently sued Arthur Morgan, the chief executive officer of the United States Surveillance Equipment Group (SEG), and charged him with the government Selling defense materials manufactured in mainland China, and lied to be”made in the United States.” On July 6, local time, a federal grand jury in Maryland formally charged Morgan with two”federal telecommunications fraud crimes.”

According to reports, the company involved sold Bulletproof vests, helmets and other anti-riot equipment and other items. It is estimated that the total value of supplies exceeds US$650,000.

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Reported by the US Department of Justice website

The US Surveillance Equipment Group (SEG) is a security service and equipment supplier in Washington, DC, which has been in existence for 28 years. According to public information, the company provides electronic security products and defense materials, such as surveillance systems and anti-riot equipment, to government customers in the United States and other countries.

The company has become a defense agency contractor for federal agencies since 2003, and sold bulletproof vests made in China to six federal agencies, including the US Navy, from September 2014 to August 2019 , Helmets, riot gear and other items, with a total value of over 650,000 US dollars.

According to the indictment issued by the Maryland District Court, the 67-year-old company CEO Arthur Morgan was charged with two”federal telecommunications fraud crimes”.

Although SEG denied the allegations, it claimed that none of the products provided to federal agencies were manufactured in mainland China. But the grand jury said that Morgan lied to federal agencies that the defense materials sold were made in the United States and Hong Kong, China, but in fact they were imported directly from China (the Mainland).

The indictment emphasizes that Morgan knows that these products are made in mainland China and provides them to federal agencies. For example, Morgan lied in an email to the US Navy that the company had a factory in Southern Virginia that produced helmets, but those helmets were actually imported from mainland China.

If convicted, Morgan will face two charges of telecommunications fraud, each of which will face up to 20 years of federal prison.

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Bulletproof vest data map

When Trump took office, he shouted the slogan”America first” and signed the”Buy American, Hire American” administration in 2017 The order requires federal agencies, including the Pentagon, to give priority to”Made in the United States” when purchasing.

According to the relevant provisions of the US General Services Administration (GSA) and the Trade Agreement Act (TAA), all government material contractors can only sell products from”designated countries and regions.” Among them, China (Mainland) is not listed.

In fact, similar incidents are not the first time. In November 2019, American Aventura Technologies was investigated and prosecuted. The company was suspected of selling to the US military surveillance and security equipment known as”Made in the USA”, but these equipment were actually produced in China.

This article is an exclusive manuscript of the Observer Network and may not be reproduced without authorization.