Fraud Conviction: COVID-19 Relief Funds Misappropriate by O.C. Man
Fraud Conviction: COVID-19 Relief Funds Misappropriate by O.C. Man
An Orange County man was sentenced to more than seven years in federal prison Friday after admitting he duped three companies out of $3 million for protective gloves that were promised but never delivered during the onset of the COVID-19 pandemic. In addition to the 87-month sentence, Christopher John Badsey, 63, of Lake Forest was ordered to pay $1.94 million in restitution after pleading guilty to four counts of wire fraud.
Details of the Fraud
In June and July 2020, when personal protective equipment such as masks, gloves, and hand sanitizer were in short supply, Badsey claimed his Irvine-based company, First Defense International Security Services Corp., could provide millions of boxes of nitrile gloves.
- Badsey entered into contracts to sell gloves to three companies.
- Each company was required to deposit around $1 million before inspecting the goods.
- A total of $3.2 million was wired to accounts controlled by Badsey and his unnamed accomplice.
However, prosecutors stated that Badsey didn’t possess the gloves and created elaborate excuses for the delays in delivery.
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