A Colorado-based forklift importer has been accused of selling China-made forklifts as American-made, the Department of Justice (DOJ) announced on Sept. 30.
Three executives of Octane Forklifts and Endless Sales were charged on Aug. 21 for defrauding the federal government by certifying that the forklifts they sold were made in the United States. The forklifts were sold to the Department of War (DOW), formerly the Department of Defense, and the Department of Homeland Security (DHS).
Along with the companies Endless Sales and Octane Forklifts, the DOJ charged executives Brian Firkins and Jeffrey Blasdel, as well as former executive J.R. Antczak, with conspiring to commit wire fraud.
The three were also charged with evading tariffs during the import process. They are charged with undervaluing the forklifts in official documentation, thus reducing their tariff bill.
Selling China-made forklifts to the federal government violates the Buy American Act, which requires the federal government to buy American-made products and materials.
According to the indictment, Octane Forklifts allegedly lied to federal officers about being compliant with the Buy American Act and Trade Agreements Act. A screen capture of their website from April 2023 has a section displaying their federal and state compliance credentials.
“Defrauding the United States to profit from goods made in adversarial nations like China undermines our economic and national security,” Attorney General Pamela Bondi said in a statement.
According to the indictment, starting in August 2018, Octane Forklifts started importing forklifts made in China. Former Octane Forklifts executive J.R. Antczak allegedly instructed the China-based manufacturer to add plates to the forklifts in English, display the American Flag, and then the company claimed that the forklifts were put together in Denver, Colorado.
According to the indictment, once the forklifts arrived in the United States, Antczak allegedly had employees take off any tags or stickers that showed the forklifts were actually made in China.
“Defendants fraudulently hid the origins of the products they sold the government and conspired to avoid paying tariffs,” Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division charged.
The three are also charged with evading $1 million in tariffs by submitting false invoices to the U.S. Customs and Border Protection that under-reported the price of the forklifts.
“Federal contractors are expected to be honest in their dealings with the government,” Deputy Inspector General Robert Erickson of the U.S. General Services Administration Office of Inspector General said.
Voicemails left with Endless Sales and Octane Forklifts were not returned before publication time.
