Lake Forest Man Sentenced to More Than Seven Years in Prison for Defrauding Buyers of Medical-Grade Gloves During COVID-19 Pandemic
Summary
A press release of the U.S. Attorney's Office for the Central District of California dated Friday, August 23, 2024, announcing that Christopher John Badsey, 63, of Lake Forest, was sentenced by United States District Judge Josephine L. Staton to 87 months in federal prison and ordered to pay $1,938,990 in restitution. It states that he pleaded guilty in April 2023 to four counts of wire fraud over companies that in mid-2020 paid more than $3 million for COVID-related medical protective equipment that was never delivered. According to the release, in June and July of 2020 he told three companies he had access to millions of boxes of nitrile gloves through his Irvine-based company, First Defense International Security Services Corp., and required deposits of upwards of $1 million before they could inspect the gloves.
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Press Release Lake Forest Man Sentenced to More Than Seven Years in Prison for Defrauding Buyers of Medical-Grade Gloves During COVID-19 Pandemic Friday, August 23, 2024 For Immediate Release U.S. Attorney's Office, Central District of California LOS ANGELES – An Orange County man was sentenced today to 87 months in federal prison for defrauding companies who in mid-2020 paid more than $3 million for COVID-related medical protective equipment that was never delivered. Christopher John Badsey, 63, of Lake Forest, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $1,938,990 in restitution. Badsey pleaded guilty in April 2023 to four counts of wire fraud. 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 he told the companies’ representatives that before they could inspect the gloves, which he claimed were stored in a Los Angeles warehouse, 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. “[Badsey]…used the deposit money to make expensive purchases, all while stringing would-be purchasers along with false stories, including absurd claims that government agents were blocking access to his warehouse of gloves,” prosecutors argued in a sentencing memorandum. He has forfeited 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. The FBI investigated this matter. Assistant United States Attorneys Kristin N. Spencer and Melissa S. Rabbani of the Santa Ana Branch Office prosecuted this case. Contact Ciaran McEvoy Public Information Officer ciaran.mcevoy@usdoj.gov (213) 894-4465 Updated August 23, 2024 Topics Coronavirus Financial Fraud Component USAO - California, Central Press Release Number: 24-207 Related Content Press Release Irvine Man Pleads Guilty to Scheming to Steal and Resell High-End Violins and to Robbing Irvine Bank Branch Earlier This Year An Orange County man pleaded guilty today to federal criminal charges for orchestrating a scheme to steal high-value violins and robbing a bank in Irvine. September 16, 2024 Press Release Rancho Cucamonga Man and Woman Found Guilty of Federal Criminal Charges in Connection with ‘Birth Tourism’ Scheme Two San Bernardino County residents were found guilty by a jury today of operating a “birth tourism” scheme that charged Chinese clients tens of thousands of dollars to help them... September 13, 2024 Press Release Los Angeles Businessman and His Companies Settle Claims Related to Improper COVID-19 Business-Relief Loans Yosef Y. Manela, a Los Angeles-based businessman who owns and operates an accounting firm, law firm and consulting company, has paid $802,341 to the United States to resolve allegations that... September 12, 2024
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