A suburban Chicago medical device company has agreed to pay a $1 million fine to resolve a federal criminal investigation into the alleged selling of misbranded products imported from overseas. Mokena, Ill.-based Advanced Inventory Management, Inc. (AIM) admitted in a Statement of Facts filed in US District Court in Chicago that the company imported medical products from international distributors at cheaper prices than what it would have paid to US distributors. Once the products arrived in the US, company employees—under the direction of its sole owner and Chief Executive Officer, Anthony Iaderosa, 52, of Mokena, Illinois—used a hair dryer to remove labels that had cautioned the products were only available for resale in a specified country and not in the United States. The company then re-sold the products to customers in the US at a substantial markup, resulting in profit margins of 35% to 50%. In total, AIM admitted that it made profits of approximately $500,000 by employing this tactic.
