Ex San Jose Man Pleads Guilty In Stolen Computer Parts Ring

SAN JOSE, CA -- A former resident of San Jose pleaded guilty Monday to money laundering and witness tampering in connection with a scheme to sell stolen computer parts, U.S. Attorney David L. Anderson announced alongside Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Kareem Carter.

The plea was accepted by the U.S. District Court judge.

According to the plea agreement, Kenneth Tam, 59, admitted that while he was an employee of a San Francisco Bay Area manufacturer of computer parts up to the end of 2010, Tam knowingly obtained stolen merchandise from his company and sold it to his co-conspirator, Cuong Cao Dang.

Dang owned a company that was a front to Tam's operation. Tam would take cash from Dang as payment for delivery of stolen computer parts before depositing the proceeds from the stolen equipment into accounts owned by a foreign national who had given Tam power-of-attorney over the accounts.

Tam’s plea agreement describes various aspects of the money-laundering scheme. He also admitted to tampering with witnesses in which in at least one circumstance he provided the foreign national with a false cover story to use if she was contacted by law enforcement agents investigating the accounts.

A federal grand jury handed down a superseding indictment in October of 2017, charging Tam with two counts of witness tampering, one count each of conspiracy to commit mail fraud, money laundering, making a false statement to government agents and contempt. The South Bay man pleaded guilty to one count of money laundering and one count of witness tampering. The remaining counts will be dismissed at sentencing if Tam complies with the terms of the plea agreement.

Tam’s sentencing is scheduled for May 6. He faces a maximum sentence of 20 years in prison and fines including $500,000 for money laundering up to $250,000 for witness tampering.

Dang pleaded guilty in December of 2015 for his role in the scheme. On October 31, 2017, he was sentenced to 90 months in prison to be followed by three years of supervised release.

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