The chief commercial officer (CCO) of a Kentucky company specializing in antique wood reclamation was sentenced on September 12, 2023, to 10 months in prison for selling misbranded N95 respirator masks during the COVID-19 pandemic.
In the fall of 2020, the CCO, along with the chief executive officer (CEO), directed the company to begin importing and selling medical-grade 3M™ N95 masks. The company purchased more than 100,000 alleged 3M N95 masks from a company in China, and resold them to customers throughout the United States.
In his plea agreement, the CCO acknowledged that by March 2021, information from multiple sources, including 3M’s COVID-19 Fraud and Counterfeit Product Response Team, alerted him to the high probability that the masks he imported from China were counterfeit. He deliberately ignored these concerns and directed his company to continue selling the masks, misleading customers as to their authenticity. Between March 3, 2021, and April 9, 2021, the company sold 57,460 misbranded masks for a total of $129,353.
Upon the CCO’s release from prison, he will be under the supervision of the US Probation Office for one year. He was also ordered to pay $129,353 in restitution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
Compliance Perspective
Issue
It is critical that healthcare workers are provided with personal protective equipment (PPE) that gives them effective protection. The purchasing department must ensure that all PPE is purchased from a reputable company. Staff that utilize PPE should be aware of what they can do if they suspect any PPE is counterfeit or does not provide effective protection.
Discussion Points
- Review policies and procedures that guide the purchasing of PPE to ensure they stipulate that PPE will only be purchased from reputable companies. Update as needed.
- Train purchasing department personnel so that they are able to identify and purchase reputable supplies of PPE. Educate staff on the proper way to wear and remove PPE for maximum protection. Train healthcare workers on the steps that they should take if they suspect that PPE may be counterfeit or ineffective in anyway.
- Periodically audit the inventory of PPE to ensure that it fits properly and provides effective protection. Determine that all PPE and other essential supplies are only purchased from reputable companies.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
