Young C. Kim, President and project manager of co-defendant Hubtec International Corporation (“Hubtec"), was sentenced to two years of probation and ordered to pay a $200 special assessment fee based upon his participation in defrauding the U.S. Department of Transportation Federal Highway Administration (“FHWA") and the Government of Guam Department of Public Works in connection with Hubtec’s contract to reconstruct and rehabilitate the Route 2 culverts and Cetti Bay slide repair in Agat and Umatac. Funded in part under the American Recovery and Reinvestment Act (“ARRA") of 2009, the contract required that all steel and iron that were to be permanently incorporated into the project be manufactured in the U.S. pursuant to the Buy America requirement unless FHWA granted a waiver. Kim and Hubtec falsely represented that they used U.S.-made reinforcement steel bars for the project, when in fact, the defendants knew they incorporated Korean-made reinforcement steel bars which were not in compliance with applicable Buy America requirements. The Honorable Ramona V. Manglona, Designated Chief Judge, sentenced Kim in the U.S. District Court of Guam on June 27, 2013.
Kim pleaded guilty in Oct. 29, 2012 to two counts of making false statements in connection with a highway project. The FHWA has debarred Kim and Hubtec for its willful violation of the Buy America provisions for a period of three years which has the effect of excluding them from being a participant or principal in federally-funded programs and projects unless an agency grants an exception. The sentencing for Hubtec is set for Aug. 14, 2013 at 1:30 p.m.
The investigation was conducted by the Federal Bureau of Investigation (“FBI") and the U.S. Department of Transportation, Office of Inspector General (“DOT-OIG"). The case was handled by Assistant U.S. Attorney Marivic P. David.
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, stated that “this prosecution reflects that strong commitment of the U.S. Attorney’s Office, FBI, and DOT-OIG to ensure that ARRA funds are used for their intended purpose."
Source: U.S. Department of Justice, Office of the United States Attorneys
