Last Friday, the US Department of Justice announced it had filed a federal criminal complaint in Maryland charging Arthur Morgan, age 67, of Lorton, Virginia, on a federal wire fraud charge, in connection with federal contracts to provide helmets, body armor, and other goods to military and other federal entities. The criminal complaint was filed on December 16, 2019 and was unsealed at his initial appearance following his arrest on December 17, 2019. He is the CEO of SEG Armor, who was also named in the charges. If convicted, Morgan faces a maximum sentence of 20 years in federal prison for wire fraud.
The criminal complaint alleges that Morgan falsely certified that the ballistic vests, helmets, riot gear, and other items he offered for sale were from TAA compliant Hong Kong and the United States. The affidavit alleges that Morgan knew that the items were manufactured and purchased from China. From September 2015 to July 2019, the U.S. Navy and U.S. Department of State were two of at least five federal agencies that placed a total of nine orders with SEG for ballistic vests, helmets, or riot gear, valued at approximately $639,921.11.
Of note to SSD readers, he informed the US Navy that he was manufacturing armor and helmets at a factory here in Virginia. A Navy Acquisition professional at Indian Head ordered helmets from SEG. Naturally, the price was great and they looked just like actual Made in USA helmets. But instead, these counterfeits were made in China. Save a buck and put your troops at risk. Buy the genuine article.
A detention hearing was held last Thursday U.S. District Court in Greenbelt. U.S. Magistrate Judge Gina L. Simms ordered that Morgan be released to a third-party custodian on home confinement, with a special condition that he pay a $75,000 bond. He will be detained until a hearing at 3:30 p.m. today to confirm that Morgan has met his conditions of release.
They should’ve just ordered from HHV….
Let me know if the Gov sells them off in a “fire sale” (or destroys them)…
Not sure why, but I have noticed every helmet that comes with the head lock clip that snaps into the ARC rail. Is normally a china counterfeit. He should be taking out and shot
He should be forced to wear his counterfeit ballistic gear and see how well it holds up. People like this I have zero sympathy.
Springfield Armory’s Dennis Reese pleaded guilty to I believe it was conspiracy and filing false statements in relation to a 1989 case where Reese and an Army Colonel were charged with conspiring to defraud the foreign military sales program operated by the Pentagon. See the 3-17-89 article by Deseret News.
Why do some people commit fraud, like in the SEG Armor, and Springfield Armory cases above? In my opinion, a complete lack of ethics and values is the root cause.
Don’t do business with companies run by people like that.
Its called the americsn dream…
Look, it’s high time folks in the West, particularly those in MIL/LE and other “tactical” fields, stopped buying anything made in China. Buying Chinese = building a Chinese military that is focused on one thing: defeating the West and the US in particular.
Counterfeiting is not new but is rampant and on the rise. The US is usually far too lenient with companies who cheat. Unless your head is deep in the sand, stop giving your business to the Chinese and Chinese-owned companies, check labels before you buy and research the companies you buy from, you’ll be surprised how much “chicom” has infected the tactical equipment industry, including some well known brands that do everything they can to keep this hidden.
This… ^^