By: Richard L. Smith
James Cai, the Chief Executive Officer of a Passaic, New Jersey-based company, pleaded guilty today to charges of falsifying data plates on forklifts provided to the U.S. Army in an attempt to make them appear as if they were manufactured in the United States.
The forklifts, originally purchased from China, were intended for use by the U.S. Army at Fort Cavazos in Killeen, Texas.
Cai, 33, who resides in Hackensack, New Jersey, entered his guilty plea before U.S. District Judge Robert A. Kirsch in Trenton federal court.
He faced an information charging him with one count of making false statements in connection with the provision of two forklifts to Fort Cavazos.
According to documents filed in this case and statements made in court, between September 2018 and January 2019, Cai, through his company, Toner Connect LLC, secured contracts to supply various U.S. Army installations with forklifts.
These contracts required that the forklifts meet the criteria set by the Buy American Act (BAA). Specifically, they had to be manufactured in the United States, with at least 50 percent of the cost of their components originating from the U.S.
One such contract awarded Toner Connect LLC $247,000 for the provision of two FD150 diesel forklifts to Fort Cavazos.
However, Cai opted to purchase these forklifts from a Shanghai-based company in China in an effort to reduce costs.
To hide their origin and present them as BAA-compliant, Cai installed false data plates on the forklifts, which stated:
Final Assembly in the USA Millennial Enterprise LLC, Newark, NJ 07102 North American Headquarters
Upon their delivery to Fort Cavazos on August 26, 2019, it became evident that the forklifts had multiple operational issues, rendering them irreparable due to the concealment of their true make and model.
For the charge to which he pleaded guilty, Cai faces a maximum penalty of five years in prison and a maximum fine of $250,000.
His sentencing is scheduled for April 11, 2024.