Federal prosecutors have charged three executives with defrauding our military by selling Chinese-made forklifts disguised as American products, undermining national security and bilking taxpayers out of millions while violating Buy American laws designed to protect domestic industry.
Story Highlights
- Denver companies fraudulently sold Chinese forklifts to military agencies as “Made in USA” products
- Scheme evaded over $1 million in Trump-era tariffs and violated federal procurement laws
- Federal agencies including Army, Navy, Air Force, and FEMA were victims of the $4 million fraud
- Executives face up to 20 years in prison for wire fraud and conspiracy charges
Chinese Equipment Infiltrates Military Supply Chain
Endless Sales Inc. and Octane Forklifts, Inc., two Denver-area companies, orchestrated an elaborate scheme from 2011 to 2023 to import Chinese-manufactured forklifts and sell them to U.S. military and federal agencies under false “Made in USA” labels. The companies secured over $4 million in federal contracts by deceiving the Army, Navy, Air Force, Defense Logistics Agency, FEMA, State Department, and Department of Homeland Security about the true origin of their equipment.
Federal prosecutors charged executives Brian Firkins, Jeffrey Blasdel, and J.R. Antczak with wire fraud, conspiracy, and making false statements to federal agencies. The scheme involved creating fake invoices with assistance from an unnamed Chinese national and manufacturer to disguise the equipment’s true origin and undervalue imports to avoid proper tariff payments.
Trump Tariffs Exposed Fraudulent Operations
The 2018 Trump administration tariffs on Chinese goods, including a 25% levy on forklifts, created financial pressure that exposed the companies’ fraudulent practices. Rather than comply with legitimate procurement processes or absorb increased costs, the executives doubled down on deception to maintain their profit margins while cheating American taxpayers and legitimate domestic manufacturers.
The Buy American Act and Trade Agreements Act specifically require federal agencies to prioritize U.S.-made products and restrict sourcing from non-designated countries like China. These laws exist to protect national security interests and support American industry, making the companies’ willful violation particularly egregious given the sensitive nature of military and disaster response operations.
National Security Implications Alarm Officials
Attorney General Pamela Bondi and DHS Inspector General Joseph V. Cuffari emphasized the serious national security risks posed by introducing Chinese-manufactured equipment into military and emergency response operations. The case highlights broader concerns about supply chain integrity and the potential for adversarial nations to compromise critical infrastructure through deceptive procurement practices.
Forklifts sold to military as ‘made in USA’ were actually from China, feds say https://t.co/ySxbBtmCfq
— Task & Purpose (@TaskandPurpose) October 2, 2025
The fraud particularly impacted FEMA disaster relief operations, where reliable equipment is essential for emergency response. This undermines the agency’s ability to serve American communities during crises while funneling taxpayer dollars to Chinese manufacturers instead of supporting domestic production capabilities that strengthen our industrial base and create American jobs.
Justice Department Pursues Maximum Penalties
The Department of Justice is seeking severe penalties for this brazen violation of federal law, with executives facing up to 20 years in prison and corporations subject to fines up to $500,000. Court appearances are scheduled for early October 2025, with the investigation continuing to identify potential additional parties involved in the scheme.
This case represents a significant victory for procurement law enforcement under the Trump administration’s renewed focus on protecting American interests. The aggressive prosecution sends a clear message that companies attempting to undermine Buy American requirements and deceive federal agencies will face serious consequences, particularly when their actions compromise national security and cheat taxpayers.
Sources:
Forklifts sold to military as ‘made in USA’ were actually from China, feds say – Task & Purpose
Charges for selling Chinese forklifts as US products – Forkliftaction
Colorado companies charged with selling Chinese forklifts as made in America – KRDO
3 Charged in Alleged Scheme to Sell Chinese Forklifts as Made in America – NTD
Two Companies and Three Executives Indicted for Fraudulently Selling Chinese Forklifts – DOJ
