Ex-GM manager accused of taking $3 million in bribes from South Korean parts supplier

A former Normal Motors supervisor was arrested Thursday in Los Angeles on a cost that he took greater than $3 million in bribes from a South Korean components provider in return for a significant contract with the Detroit automaker.

Hyoung Nam So, 46, who now lives in Irvine, took $3.45 million in money from the components provider in late 2015, a payoff for rigging the bids on a contract to provide GM with auto portray, window movie and molding, in line with a federal grand jury indictment issued Wednesday.

On the time, So, who goes by Brian, was a supervisor in GM’s World Buying and Provide Chain group in Michigan, the place he oversaw the provision of components used to construct car interiors.

Since January 2020, So has been the worldwide buying chief at Karma Automotive, a luxurious automobile firm in Irvine, in line with his on-line resume. There was no response to a request for remark left by voicemail Thursday at Karma Automotive.

So’s lawyer, H. Dean Steward, declined to remark.

GM launched an announcement saying it was cooperating with federal investigators.

“Normal Motors doesn’t tolerate or condone corruption or bribery of any variety,” an organization spokesperson stated. “The unlawful conduct alleged right here is completely inconsistent with our code of conduct and company insurance policies.”

The indictment charged So with one rely of conspiracy to commit bribery. Prosecutors say the quantity of the alleged kickback was unusually excessive for a buying agent at one in every of America’s greatest firms.

“The bribe quantity may be very vital,” Assistant U.S. Atty. Jeff Mitchell stated. “It’s bigger than most bribe quantities that individuals see in company prosecutions.”

Brokers from U.S. Homeland Safety Investigations seized $3.19 million in money from a non-public vault in Los Altos in 2017, they usually imagine that was a part of the bribe proceeds, authorities stated. The cash was returned to South Korean authorities, they stated.

The plot started at an October 2015 assembly in South Korea, the place So instructed the proprietor of the components provide firm that he might guarantee it gained a big GM contract in return for $5 million in money, in line with the indictment.

The provider — listed within the indictment as an unnamed co-conspirator — and one other unnamed confederate organized for cash brokers in South Korea and Los Angeles to switch $1 million in money to america, the indictment says. The confederate rented a automobile in L.A. and drove the money to Detroit, the place the provider picked it up and gave it to So at a resort in Troy, Mich., it says.

After a competitor submitted a decrease bid, the provider who paid the bribe revised its proposal, and So then really useful that GM executives award the contract to the corporate that paid the kickback, in line with the indictment.

Per week later, it says, the provider’s confederate collected one other $2.45 million in money from Los Angeles cash brokers and drove it to Detroit, the place the provider once more picked up the cash and delivered it to So, this time exterior a restaurant in Detroit.

The provider was prosecuted in South Korea, in line with the U.S. Legal professional’s Workplace in Los Angeles.

Kookje Shinmun, a newspaper in Busan, South Korea, reported that an unnamed auto components provider was arrested and indicted in 2017 on fees of paying a $3.45-million “rebate” on a $35-million sale of automobile tools to GM, however the last consequence of the case was unclear.

Instances Workers Author Jeong Park contributed to this report.