The U.S. Attorney’s Office for the Northern District of Texas announced on November 30, 2022 that Suhaib Allababidi of Grand Prairie and his company, 2M Solutions Inc., pleaded guilty in a scheme to pass off China-made electronics as USA-made.
What prosecutors said
- 2M sold security cameras, solar-powered light towers, digital video recorders and other electronics to agencies including the Defense, Justice and Homeland Security departments.
- It called itself “a USA Manufacturing Company” but did little or no manufacturing. It removed origin labels from Chinese products and replaced them with labels saying they were made in Grand Prairie.
- Packaging carried an American flag map and the words “Made in the USA,” and 2M certified its goods complied with the Buy American Act.
- An employee told a Chinese supplier, “we do not want any Chinese characters or stickers on the shipment.”
The pleas
- Allababidi pleaded guilty to conspiracy to defraud the United States and faces up to five years in prison.
- 2M pleaded guilty to conspiracy and to filing false export information, and faces fines of up to $1 million or twice the criminal proceeds.
“This defendant’s lies undermined the Buy America Act and with it, American manufacturing.”
Chad Meacham, U.S. Attorney
FAQ
Who pleaded guilty?
Suhaib Allababidi and 2M Solutions Inc. of Grand Prairie, Texas.
What did they sell?
China-made cameras, light towers and electronics labeled Made in USA.
Which agencies bought them?
Including the Defense, Justice and Homeland Security departments.
Source & credit
Source: U.S. Attorney’s Office, Northern District of Texas (via GSA OIG), November 30, 2022: “Texas Man Pleads Guilty to Lying About Origin of Chinese-Made Products”.
Also: The Dallas Morning News, December 5, 2022: “Texas man pleads guilty to defrauding U.S. with ‘Made in the USA’ products bought in China”.