The Military Bought Thousands Of Boots Labeled 'Made In The USA.' They Were From China

Gear
Tim Wimborne/Getty Images

Five executives with a former leading manufacturer of U.S. military boots have been sentenced in federal court for saying the boots were made in Tennessee when they were actually produced in China.


According to an indictment filed in U.S. District Court, the actual Chinese manufacturer of the boots was told to include "USA" on the label of Wellco boot uppers that were then shipped to the U.S. The "Made in China" tags were removed, the indictment says. Soles were affixed to the boots at Wellco's plant in Morristown, Tennessee, and elsewhere, according to the document.

From 2006 through 2012, the U.S. Department of Defense paid at least $138 million to Wellco for military footwear, according to the indictment.

Two of the executives with manufacturer Wellco Enterprises were sentenced in U.S. District Court in Greeneville, Tenn., to six months in prison, the Kingsport (Tenn.) Times News reported. The others received probation.

A sixth executive, Vincent Ferguson, who was the company's president and CEO, will be sentenced later this year, according to the newspaper.

All six previously pleaded guilty in the case, court records show.

Ferguson and two others pleaded guilty to conspiracy to commit wire fraud. Two others pleaded guilty to smuggling goods into the U.S., and one other executive to aiding and abetting the altering of country of origin marks, according to their plea agreements filed in court in January.

The indictment filed in September 2016 accused the six of marketing and selling at least $8 million of boots from December 2008 to August 2012 to the U.S. government, government contractors and the public "that were falsely represented as 'Made in the USA ...."

Wellco Enterprises was a leading manufacturer and supplier of military and other "rugged footwear for over 70 years, the indictment says. The company was founded in 1941 in Waynesville, N.C.

According to a U.S. Department of Justice news release in February, Vincent Ferguson, 66, of Knoxville, Tennessee, pleaded guilty on Feb. 15 to conspiracy to commit wire fraud.

Also pleading guilty to conspiracy to commit wire fraud were Ferguson's sons, Wellco’s former senior vice president of sales, Matthew Lee Ferguson, 41, of Geneva, Illinois; and the company's former director of marketing and communications, Kerry Joseph Ferguson, 36, of Houston, Texas, according to the release.

Wellco’s former vice president of government contracting, Neil Streeter, 55, of Warren, Massachusetts, and former operations manager Stephanie Lynn (Ferguson) Kaemmerer, 45, of Knoxville, pleaded guilty to smuggling goods into the United States. She is Vincent Ferguson's daughter.

Matthew Harrison Martland, former director of distribution and logistics, aiding and abetting the altering of county of origin marks, the Times News reported.

———

©2018 The Charlotte Observer (Charlotte, N.C.). Distributed by Tribune Content Agency, LLC.

Several hundred U.S. troops will remain in Syria after allied forces clear ISIS fighters out of their last stronghold in the country, a senior administration official told Task & Purpose on Friday.

President Donald Trump announced in December that he would withdraw all U.S. troops from Syria, but Sen. Lindsey Graham has since made a strong push to keep a small residual force along the Turkish border along with troops from European allies.

Read More Show Less
Chris Osman (Photo: _chris_osman_designs/Instagram)

The former Navy SEAL among a group of eight men arrested earlier this week in Port-au-Prince on weapons charges says he was providing security work "for people who are directly connected to the current President" of Haiti.

"We were being used as pawns in a public fight between him and the current Prime Minister of Haiti," said Chris Osman, 44, in a post on Instagram Friday. "We were not released we were in fact rescued."

Read More Show Less
Former Secretary of Defense James N. Mattis (DoD photo)

A Richland, Washington city councilman thinks native son Jim Mattis would make a terrific governor or even president.

Read More Show Less

It's a photo for the ages: a Marine NCO, a Greek god in his dress blues, catches the eye of a lovely young woman as her boyfriend urges her on in distress. It's the photographic ancestor of the much-loved "distracted boyfriend" stock photo meme, made even sweeter by the fact that this is clearly a sailor about to lose his girl to a Devil Dog.

Well, this photo and the Marine in it, which hopscotched around Marine Corps Facebook and Instagram pages before skyrocketing to the front page of Reddit on Thursday, are very real.

The photo shows then-Staff Sgt. Louis A. Capozzoli — and he is absolutely not on his way to steal your girl.

Read More Show Less

MAPLE, N.C. -- A maritime center with a pool big enough to hold a small ship and simulate hurricane conditions is set to open in Currituck County, North Carolina, in two years. It will serve to train groups such as special forces, law enforcement and offshore wind crews.

It could be the first of its kind in the world.

Read More Show Less