Sounds pretty tame so far. Counterfeits just seem to be a common hazard nowadays. In this case, some business got saved the inconvenience of sub-par parts. Except that the brothers weren't going to sell them to a business. "The two brothers had a contract to sell these parts to the Department of Defense and other government agencies."
The article sums it all up nicely;
But with the Department of Defense installing counterfeit computer components, it becomes a national security issue. There's also the fear that the Chinese, or some other hostile nation, might get their hands on real computer components, and replace some of the chips with modified ones that will make government networks easier to hack. Yes, it just gets worse.
Yep, it does.
Hat tip to Instapundit.
On a slight tangent, The Elephant and the Dragon has been added to the Coast Guard Reading List.