Former Wellco CEO Gets 41 Months for Selling Chinese-Made Boots as Made in USA

Vincent Lee Ferguson, former president and CEO of military boot maker Wellco Enterprises, Inc., was sentenced on August 6, 2018, to 41 months in federal prison for a wire fraud conspiracy. He sold Chinese-made boots as made in the USA, the U.S. Attorney’s Office for the Eastern District of Tennessee announced August 8.

The scheme

Wellco supplied military footwear to the Department of Defense for more than 70 years. From 2006 through 2012, the DoD paid Wellco more than $138 million for combat boots.

• From December 2008 through August 2012, Ferguson and his executive team imported military-style boots made in China.
• They marketed the boots to the DoD, government contractors and the public as “Made in the USA” and as compliant with the Berry Amendment and the Trade Agreements Act.
• The company sold more than $8.1 million in fraudulent boots.
• At first, the Chinese factory put “USA” on the boot uppers’ labels. After Customs and Border Protection seized two shipments, the factory sewed in tear-away “Made in China” labels, which workers in Morristown, Tennessee, removed before shipping.

Two other Wellco executives, Matthew Lee Ferguson and Kerry Joseph Ferguson, were each sentenced in June 2018 to six months in prison. “Our soldiers rely on their equipment, from their guns to their boots, to protect this country,” said Robert Hammer of the Defense Criminal Investigative Service.

FAQ

What sentence did Vincent Lee Ferguson receive?

41 months in federal prison for wire fraud conspiracy.

How much in fraudulent boots did Wellco sell?

More than $8.1 million, from December 2008 through August 2012.

Which law requires USA-made military uniform items?

The Berry Amendment.