For anyone who found this tale interesting, "Poorly Made in China" is a well-written and eye-opening account of similar antics.

http://www.amazon.com/Poorly-Made-China-Insiders-Production/...

Much like the kickstarter project mentions, this book covers repeatedly broken promises, misleading claims (like the laser etching that turned out to be CNC), continuous reassurances followed by convenient disappearances, completely mythical factory sites and machinery, supposedly mechanical processes that turn out to be skilled hand-labor, and the need for vigilant and cynical quality control. It makes a convincing argument that once you account for the cost of all these shenanigans, export manufacturing is nowhere near as good a deal as it seems.