A suburban Chicago businessman is facing up to 20 years in prison for an alleged multimillion-dollar PPE fraud in which he stands accused of swindling two large university hospitals and then using the money to buy a Maserati, Land Rover and more.

Dennis W. Haggerty Jr. is accused of wire fraud in connection with an alleged PPE swindle.

Federal prosecutors charged Dennis W. Haggerty Jr., 44, of Burr Ridge, IL, with one count of wire fraud in U.S. District in Chicago on Tuesday, Nov. 10.

Haggerty’s LinkedIn page describes him as the current president of AT Media, a firm that provides digital marketing services that range from banner ad marketing and retargeting to pay-per-click campaigns and more. From 2002 to 2007, his LinkedIn indicates he was the chief financial officer of an organization in the graphics/printing field, ARC, with which he no longer is affiliated.

According to authorities, Haggerty and two business partners formed a spinoff company, AT Diagnostics, in March 2020 to sell personal protective equipment (PPE). Subsequently, a large university hospital in Chicago that employs more than 7,000 people and another big university hospital in Iowa that employs more than 10,000 people ordered about 1 million N95 masks from AT Diagnostics.

As a deposit on the masks, the hospitals paid more than $3 million into a bank account that Haggerty falsely represented as an AT Diagnostics account, but which was totally controlled by Haggerty, according to a criminal complaint. Furthermore, the complaint alleges that Haggerty spent part of the hospitals’ funds for his own personal benefit, including purchasing two Maserati automobiles and a Land Rover SUV.

After the cash came into his account, Haggerty in early April also allegedly used the funds to pay $60,690 to three credit card companies; transferred $50,000 into a checking account for “Car Dealer Benefits Inc.,” an account controlled by Haggerty and his spouse and a company for which Haggerty lists himself as CEO; paid a check of $20,000 to a woman identified as Haggerty’s girlfriend; spent $5,809 with Home Depot; and withdrew $6,000 via a check written to cash. 

The hospitals wanted their PPE, though. When AT Diagnostics failed to deliver the N95 masks, they sought refunds. Haggerty partially refunded one of the hospitals some of its money, but as of this writing approximately $2.6 million that the healthcare institutions paid has not been returned, authorities allege.

Additionally, investigators maintain, Haggerty falsely claimed to one hospital that his bank had no record of a payment being received. “After his business partners confronted Haggerty about the whereabouts of the money, Haggerty altered a bank statement to make it appear as if the funds had never been received,” authorities said.

Haggerty’s arrest again highlights the focus federal investigators are devoting to stopping PPE fraud amid the ongoing COVID-19 pandemic.

In 2020, many in the promotional products industry have turned to selling PPE to keep business moving and to meet society’s demand for the protective equipment. According to authorities, however, not every PPE player in promo has acted ethically.

Promo distributor John Anthony Taylor, owner of Wasatch Promotional Products and other companies, is charged with wire fraud over allegedly claiming to have access to millions of N95 respirator masks from 3M when he did not have the masks or such access, according to the Federal Bureau of Investigation.

Not an authorized 3M dealer, Taylor made false representations, including emailing a fake purchase order from 3M, and attempting to execute a bogus mask sale with an undercover agent, authorities say.

Taylor has denied any wrongdoing, saying it’s all a misunderstanding. His case was scheduled for trial in federal court in Utah on Nov. 23, but it has since been continued to May 24, 2021, according to court documents.