2023-05-15 DOJ SDNY press_release 119 KB 5,709 chars

Former U.S. Army Employee Arrested In Bribery And Kickbacks Scheme Involving Defense Contracts

Caption: United States v. Damian Williams, et al.

summary

Young Beom Kim, a former U.S. Army civilian employee and Chief of the Design Branch at USAG-Yongsan/Casey in Korea, was arrested for orchestrating a bribery and kickback scheme involving over $400,000 from defense contractors supplying critical military parts, laundering payments through shell companies and relatives’ accounts, and faces up to 80 years in prison on charges including honest services wire fraud, bribery, and money laundering.

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Young Beom Kim, a U.S. citizen and former Chief of the Design Branch at U.S. Army Garrison Yongsan/Casey in Korea, is charged with honest services wire fraud, bribery, and money laundering for accepting over $400,000 in kickbacks from defense contractors between May 2017 and August 2021. He manipulated contract specifications to favor suppliers of critical military equipment—such as blast doors, blast valves, and shock isolators—and laundered the illicit payments through bank accounts controlled by relatives and a shell company with no legitimate business operations. Kim faces two counts of honest services wire fraud (each up to 20 years), two counts of bribery (each up to 15 years), and conspiracy charges, with a potential maximum sentence of 80 years if convicted on all counts.

narrative

Young Beom Kim, a U.S. citizen and former civilian employee of the U.S. Army, served as Chief of the Design Branch at U.S. Army Garrison Yongsan/Casey in Korea, where he was responsible for designing, reviewing, and approving maintenance and construction contracts for critical military infrastructure near the North Korean border. Between May 2017 and August 2021, Kim allegedly manipulated contract specifications to ensure that specific suppliers provided parts such as blast doors, blast valves, shock mounts, and shock isolators, in exchange for over $400,000 in kickbacks. He laundered these illicit payments through bank accounts controlled by his adult relatives and a shell company that performed no legitimate business functions, ultimately using the funds for personal expenses. Kim is charged with one count of conspiracy to commit honest services wire fraud and bribery, two counts of honest services wire fraud, two counts of bribery, and one count of conspiracy to commit money laundering. Each count carries significant penalties, with the two wire fraud and money laundering conspiracy charges each carrying a maximum of 20 years, and the bribery counts up to 15 years, for a potential total sentence of 80 years. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of New York’s Public Corruption Unit, with assistance from Army CID and the Department of Justice Antitrust Division. Authorities emphasized that Kim’s betrayal of public trust in a high-stakes defense environment will be met with severe consequences under federal law.

Enriched metadata

Scheme: public-corruption (100%)
Court: Southern District of New York
Outcome: charged

Classified public-corruption(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Dollar amounts 1

$400K $400,000 $100K–$1M

Entities 5

scheme_term bribes and kickbacks from defense contractors
person damian williams
scheme_term honest services wire fraud, bribery, and money laundering
person l. scott moreland
person young beom kim

Triples 10

Young Beom Kim arrested on charges of Honest Services Wire Fraud, Bribery, and Money Laundering
Young Beom Kim served as Chief of the Design Branch at Army Garrison Yongsan/Casey in Korea
Young Beom Kim received kickbacks of $400,000 from Various Manufacturers and Suppliers
Young Beom Kim schemed to enrich himself through Bribes and Kickbacks from Defense Contractors
Young Beom Kim laundered funds through Bank Accounts Controlled by Adult Relatives and Shell Companies
Young Beom Kim ensured Army contracts included Parts from Specific Companies Including Blast Doors, Blast Valves, Shock Mounts, and Shock Isolators
Damian Williams announced Arrest of Young Beom Kim
L. Scott Moreland announced Arrest of Young Beom Kim
Young Beom Kim employed by U.S. Army from May 2017 through August 2021
Case assigned to United States District Judge Richard M. Berman

View original DOJ press releasejustice.gov

Extracted body text (5,709c)

Press Release Former U.S. Army Employee Arrested In Bribery And Kickbacks Scheme Involving Defense Contracts Monday, May 15, 2023 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Damian Williams, the United States Attorney for the Southern District of New York, and L. Scott Moreland, Special Agent in Charge of the Department of the United States Army Criminal Investigation Division’s (“Army CID”) Major Procurement Fraud Field Office, announced today the arrest YOUNG BEOM KIM, a native of the Republic of Korea (“Korea”) and a United States citizen, on charges of honest services wire fraud, bribery, and money laundering. As alleged in an Indictment unsealed today in Manhattan federal court, KIM, while acting in his capacity as Chief of the Design Branch at Army Garrison Yongsan/Casey in Korea (“USAG-Y/C”), schemed to enrich himself through bribes and kickbacks from various manufacturers and suppliers of parts used in U.S. Army contracts. KIM is expected to be presented today before United States Magistrate Judge James L. Cott. The case has been assigned to United States District Judge Richard M. Berman. U.S. Attorney Damian Williams said: “As alleged in the Indictment, Young Beom Kim was responsible for overseeing construction contracts, including for the repair of bunkers, at Army Garrison Yongsan/Casey in Korea, located just miles from the North Korean border. The importance of Kim’s work and duties to the Army and its troops cannot be overstated. Kim betrayed those duties in exchange for a quick buck. Individuals who would betray their positions of trust for personal financial gain will continue to be held to account by this Office.” Special Agent in Charge L. Scott Moreland said: “Today’s arrest should serve as a stark reminder that our agents are relentless in their pursuit of those who choose to defraud the government. We have a very robust group of highly trained special agents and analysts who are masters at combating and uncovering fraud, deception, and other criminal acts associated with government contracting and purchasing. CID will continue to see to it that anyone suspected of contract fraud and corruption is brought to justice.” According to the allegations in the Indictment unsealed today in Manhattan federal court and other publicly filed documents: [1] From at least May 2017 through at least August 2021, KIM was a civilian employee for the U.S. Army, primarily serving as Chief of the Design Branch for the Directorate of Public Works at USAG-Y/C in Korea. KIM’s responsibilities included designing, reviewing, approving, and/or amending various maintenance, repair, and construction contracts at USAG-Y/C. While acting in that capacity, KIM helped ensure that certain Army contracts included the use of parts manufactured or supplied by specific companies. Some of these parts included blast doors, blast valves, shock mounts, and shock isolators (i.e., equipment designed to protect Army personnel in the event of an attack). In return, the companies manufacturing or supplying those parts collectively sent over $400,000 in kickbacks to KIM. A significant portion of these funds were laundered through bank accounts controlled by KIM’s adult relatives – including one account held in the name of a shell company (i.e. a company which existed in name only and which performed no legitimate business functions) – and were ultimately used to enrich KIM and to pay for bills and expenses incurred by KIM. * * * KIM, 62, a resident of Korea, is charged with one count of conspiracy to commit honest services wire fraud and bribery, which carries a maximum sentence of five years in prison; two counts of honest services wire fraud; each of which carry a maximum sentence of 20 years in prison; two counts of bribery, each of which carry a maximum sentence of 15 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding work of Army CID and Special Agents from the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams thanked the Antitrust Division of the U.S. Department of Justice for its assistance in this case. This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Frank J. Balsamello and Jonathan E. Rebold are in charge of the prosecution. The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. Contact Nicholas Biase (212) 637-2600 Updated May 15, 2023 Topic Public Corruption Component USAO - New York, Southern Press Release Number: 23-177

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