The 45-year-old Chicago businessman admits to cheating hospitals with more than $ 3 Million for PPE, which he never delivered during the pandemic shortage – and squandered the money on luxury cars
- Dennis Hagarty Jr. pleaded guilty to defrauding two university hospitals of millions in exchange for PPE, but never provided them with a single mask.
- In March 2020, his company struck a deal with the University of Iowa Medical Center to purchase 500,000 N95 respirators for $ 2.455 million.
- Hagarty, without telling his business partners, transfers the money to a different business controlled by him alone.
- Another hospital placed a second order for 500,000 N95 masks and inadvertently transferred $ 933,825 to Hagarty’s account in June 2020.
- Instead of returning the money, Hagarty used the money to return $ 250,000 to the first hospital in Iowa
A Chicago the businessman admitted to defrauding hospitals of more than $ 3 million at the start of the PPE pandemic – after failing to deliver a single mask.
Dennis Hagarty Jr., 45, pleaded guilty Tuesday in U.S. District Court to fraud at Northwestern Memorial Healthcare in Chicago and the University of Chicago. Iowa Iowa City Medical Center.
Hagarty then used his ill-fated profits to spend money on luxury cars such as Maserati and Land Rovers.
According to plea agreementin March 2020, Hagerty and two business partners formed a company called At Diagnostics Inc. to sell personal protective equipment in the midst of a pandemic shortage, when hospitals and medical staff ran out and desperately looking for more masks, gloves and other PPE.
Dennis Hagarty Jr. (pictured) pleaded guilty to defrauding two university hospitals of millions in exchange for PPE, but never provided them with a single mask.
Hagarty (pictured) pleaded guilty to wire fraud and money laundering and faces nearly three years in prison and an order ordering him to pay more than $ 2.5 million in restitution.
In March 2020, his company struck a deal with the University of Iowa Medical Center to purchase 500,000 N95 respirators for $ 2.455 million.
That same month, the company struck a deal with the University of Iowa Medical Center to purchase 500,000 N95 respirators for $ 2.455 million, but Hagarty, without telling his business partners, transferred the money to a different business controlled by him.
Hagarty admitted to withdrawing $ 147,750 in cash from the account, as well as paying credit card companies $ 190,000 in cash and giving his friend $ 20,000, according to the plea agreement.
He also bought a number of luxury vehicles with stolen money – including two Maserati – a 2013 Maserati GranTurismo, which sells for approximately $ 130.00, and a 2017 Maserati Ghibli, worth $ 73,000 – as well as a Land Rover Range Rover from 2015, valued at $ 84, valued at $ 00. said in the plea agreement.
When the Iowa hospital asked for the money back because it did not receive any masks, Hagarty lied and said his bank had no bank transfer details.
He even sent a modified bank statement after his partners asked him about the money, according to the plea agreement.
Hagerty admitted to withdrawing $ 147,750 in cash from the account and purchasing a number of luxury vehicles, including a 2015 Land Rover Range Rover.
He also bought a number of luxury vehicles with stolen money – including two Maserati – a 2013 Maserati GranTurismo and a 2017 Maserati Ghibli.
After the order for one million masks failed at Northwestern Memorial Healthcare, the hospital placed a second order for 500,000 N95 masks and inadvertently transferred $ 933,825 to Hagarty’s account in June 2020, the plea agreement said.
Instead of returning the money, Hagarty used the money to return $ 250,000 to the first hospital in Iowa.
Hagarty pleaded guilty to telegraph fraud and money laundering and faces nearly three years in prison and an order ordering him to pay more than $ 2.5 million in restitution.
His sentence is scheduled for May 25.
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