TRENTON, N.J. – James Cai, the CEO of Toner Connect LLC based in Passaic, New Jersey, has pleaded guilty to making false statements regarding military equipment supplied to the U.S. Army.
In a hearing before U.S. District Judge Robert A. Kirsch, Cai admitted to altering data plates on Chinese-manufactured forklifts to falsely indicate they were made in the USA.
This action was in violation of the Buy American Act (BAA), a requirement for U.S. Army contracts.
Between September 2018 and January 2019, Cai’s company was contracted to provide forklifts to various U.S. Army installations, including Fort Cavazos in Texas. Despite the BAA requirement, Cai opted for cheaper Chinese forklifts, leading to operational issues and eventual discovery of the fraud.
Cai faces a maximum penalty of five years in prison and a $250,000 fine, with sentencing scheduled for April 11, 2024. The U.S. Army Criminal Investigation Division and the U.S. Department of Defense’s Inspector General’s Office were pivotal in the investigation.
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