Kim’s Ailing Firm Gets New Owner : Investors: Legislator’s son-in-law will head engineering company. Man who bought firm is ousted.

Rep. Jay Kim (R-Diamond Bar) has found a new owner for his financially troubled engineering firm--an investment group headed by a close relative. The investors have named the congressman’s son-in-law as the company’s chief financial officer.

The change in ownership at JayKim Engineers, occurred while the company’s records have been subpoenaed by the FBI and employees have been summoned before a federal grand jury.

The federal investigation was sparked by a Times report last month that Kim had secretly used hundreds of thousands of dollars from his corporation to pay some of his campaign expenses in 1992. Federal law prohibits corporations from donating to federal campaigns. The Federal Elections Commission is also investigating the matter.

In selling the company, Kim ousted Sung Woo Min, who had bought the company from Kim in May with no money down.

Kim and Min were not available for comment. But the head of the new investment group, Jaycee Kim, said the congressman recently rescinded the prior sale of his company to Min because Min could not meet its operating expenses.

Jaycee Kim said his investment group has pledged to pump $1.5 million into the company by Sept. 15 so the company can pay vendors and make good on a defaulted $1-million bank loan, for which Rep. Kim is personally liable.

Jaycee Kim said the investors will pay the congressman $10,000 a month, and more if the company flourishes.

Jaycee Kim, an Encino electronics equipment exporter, said his company, JDP Inc., does $10 million to $20 million a year in business. His son, David, 32, is married to the congressman’s daughter, Kathy.

After his election in the 41st Congressional District in November, Kim promised to sell his corporation to avoid any conflict of interest involving the company’s numerous government contracts. Kim said that when he sold the company in April to Min, he decided to keep part of it, but later sold the rest.

In May, the company defaulted on a $1-million bank loan from Sunwest Bank. A Superior Court judge appointed a receiver as a financial watchdog over the company. The judge barred any further payments by the company to Kim, including $10,000 monthly checks as part of his purchase agreement with Min.

Jaycee Kim said he owns 40% of the company’s stock and his friend Ho Cha owns 20%. He said that the congressman’s attorney, David Christianson, and Min each have been offered 20% of the company’s stock, in return for an investment of $600,000.

Christianson, who briefly served on the company’s board, said he would like to invest if he can raise the money by Sept. 15. Min’s attorney declined to comment.

Jaycee Kim, a longtime acquaintance of Rep. Kim, said he invested in the company because it will open opportunities for him to do environmental engineering work in Korea and China. “I thought this is a very good opportunity here,� he said.