Lake Forest Man Pleads Guilty to Defrauding Buyers of Medical-Grade Gloves Out of $3.2 Million During COVID-19 Pandemic Shortage
Summary
A press release of the U.S. Attorney's Office for the Central District of California dated Wednesday, April 12, 2023, announcing that Christopher John Badsey, 62, of Lake Forest pleaded guilty to four counts of wire fraud for defrauding companies that in mid-2020 paid for COVID-related medical protective equipment that was never delivered, causing more than $3 million in losses. According to his plea agreement, in June and July of 2020 he lied to three victim companies by claiming access to millions of boxes of nitrile gloves through his Irvine-based company. The release number is 23-076.
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Press Release Lake Forest Man Pleads Guilty to Defrauding Buyers of Medical-Grade Gloves Out of $3.2 Million During COVID-19 Pandemic Shortage Wednesday, April 12, 2023 For Immediate Release U.S. Attorney's Office, Central District of California LOS ANGELES – An Orange County man pleaded guilty today to defrauding companies who in mid-2020 paid for COVID-related medical protective equipment that was never delivered, causing more than $3 million in losses. Christopher John Badsey, 62, of Lake Forest, pleaded guilty to four counts of wire fraud. According to his plea agreement, in June and July of 2020, Badsey lied to three victim companies when he told them he had access to millions of boxes of nitrile gloves through his Irvine-based company, First Defense International Security Services Corp. (FDI). This type of personal protective equipment was in high demand and short supply during the early months of the COVID-19 pandemic. Badsey agreed by contract to sell millions of boxes of gloves to each of the three companies. But Badsey told the companies’ representatives that before they could inspect the gloves, which he claimed were stored in a warehouse in Los Angeles, the companies would be required to pay deposits of upwards of $1 million to FDI. In fact, Badsey did not have any gloves stored in any warehouse. Badsey instructed the companies to wire the deposits to accounts controlled by himself, FDI or a co-schemer. Relying on Badsey’s false statements, the companies wired a total of $3,231,990 to these accounts. As part of his plea agreement, Badsey has agreed to forfeit all title and interest in money or items derived from his crimes, including a yacht, a pontoon boat, two Mercedes-Benz automobiles, two Ford pickup trucks, an RV, a tractor, three ATVs, miscellaneous fishing equipment, and $58,923 in cash. United States District Judge Josephine L. Staton scheduled a September 15 sentencing hearing, at which time Badsey will face a statutory maximum sentence of 20 years in federal prison for each wire fraud count. The FBI investigated this matter. Assistant United States Attorneys Melissa S. Rabbani and Kristin N. Spencer of the Santa Ana Branch Office are prosecuting this case. Contact Ciaran McEvoy Public Information Officer ciaran.mcevoy@usdoj.gov (213) 894-4465 Updated April 12, 2023 Topics Coronavirus Financial Fraud Component USAO - California, Central Press Release Number: 23-076 Related Content Press Release Corona Customs Broker Pleads Guilty to Defrauding Clients Out of More Than $5 Million and Evading More Than $1 Million in Taxes A customs broker pleaded guilty today to defrauding his clients – businesses who ship goods into the United States from foreign countries – out of more than $5 million, including... February 7, 2025 Press Release Former Interpreter Sentenced to Nearly 5 Years in Prison for Illegally Transferring Nearly $17 Million from Baseball Star’s Bank Account A former Japanese-language interpreter was sentenced today to 57 months in federal prison for illegally – and without authorization – transferring nearly $17 million from the bank account of Major... February 6, 2025 Press Release 5 Arrested in Law Enforcement Operation Targeting Fraudulent Withdrawal of Benefits Designated for Low-Income Families A multi-agency law enforcement operation has resulted in the arrest of five illegal aliens who allegedly used information from “skimmed” electronic benefit transfer cards to “clone” counterfeit cards and steal... February 5, 2025
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