A Chinese company masquerading as part of Koch Industries in Kansas had its articles of incorporation revoked for abusing corporate powers, the state’s attorney general said.
A Johnson County judge on Monday revoked the incorporation of Kansas-based Koch Membrane Systems Inc. after the state alleged it was affiliated with a Chinese counterfeiter. The company in China also used the Koch name, the attorney general’s office said in a news release.
“According to the lawsuit, Koch Membrane Systems Inc., the Kansas corporation, was formed in 2018 for the sole purpose of using its name and Kansas registered corporate status to masquerade as part of Koch Industries, a well-known Kansas business,” Kansas Attorney General Derek Schmidt said in a statement.
“It used an address in Johnson County but had no physical office there or elsewhere in Kansas. The lawsuit alleges Koch Membrane Systems Inc. in fact has no relationship to Koch Industries and instead appears to exist for the purpose of impersonating a real Koch subsidiary based in Massachusetts by using a nearly identical company name in order to provide false credibility to counterfeiting activities of its affiliate in China.”
The state was awarded a default judgment after Koch Membrane Systems Inc. failed to respond to the lawsuit.
The real Koch Industries is a Wichita-based company that describes itself as the second-largest private company in the United States, with estimated annual revenues of about $110 billion. While it has diverse business interests, it is most known for its work in the oil and gas industry.
A company spokesman confirmed the fake corporation was not a part of Koch Industries, but did not comment on the case.