Not an urban legend, it's been well publicized, here's a whole congressional hearing on it (warning, it's long): https://www.gpo.gov/fdsys/pkg/CHRG-112shrg72702/pdf/CHRG-112...

Not good enough, here's a few more, but there is plenty else out there: http://www.ibtimes.com/why-pentagon-finding-counterfeit-chin...

http://www.combatcounterfeits.com/gallery.htm