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DoJ investigates Blue Flame Medical (GOP-related) after claims it failed to provide masks to MD, CA
https://www.washingtonpost.com/politics/justice-department-investigates-blue-flame-medical-after-claims-it-failed-to-provide-masks-ventilators-to-maryland-california/2020/05/06/e30b5224-8fa1-11ea-9e23-6914ee410a5f_story.html
By Tom Hamburger and Juliet Eilperin
May 6, 2020 at 11:49 a.m. EDT
The Justice Department has opened a criminal investigation in to Blue Flame Medical, a firm created by two well-connected Republican operatives who started selling covid-19 supplies this spring as the virus spread across the country.
Prosecutors are focused on at least two troubled contracts the firm had signed for medical masks and other equipment with Maryland and California, according to two individuals familiar with the matter who spoke on the condition of anonymity due to the sensitive nature of the matter. Both states ultimately cancelled their contracts with the company.
An attorney for Blue Flame, Ethan Bearman, has said the firm acted in good faith with the states. He declined comment about the DOJ investigation.
This story will be updated. Erin Cox, Alice Crites and Devlin Barrett contributed to this report.
By Tom Hamburger and Juliet Eilperin
May 6, 2020 at 11:49 a.m. EDT
The Justice Department has opened a criminal investigation in to Blue Flame Medical, a firm created by two well-connected Republican operatives who started selling covid-19 supplies this spring as the virus spread across the country.
Prosecutors are focused on at least two troubled contracts the firm had signed for medical masks and other equipment with Maryland and California, according to two individuals familiar with the matter who spoke on the condition of anonymity due to the sensitive nature of the matter. Both states ultimately cancelled their contracts with the company.
An attorney for Blue Flame, Ethan Bearman, has said the firm acted in good faith with the states. He declined comment about the DOJ investigation.
This story will be updated. Erin Cox, Alice Crites and Devlin Barrett contributed to this report.
More:
California wires mask dealer half a billion dollars, then claws it back
On March 26, as the coronavirus pandemic was mounting and governors across America scrambled to secure medical supplies, the state of California wired almost a half-billion dollars to a company that had been in business for just three days.
The recipient: Blue Flame Medical LLC, a Delaware-based company headed by two Republican operatives who jumped into the medical supply business on March 23. The pair — Mike Gula from Washington, D.C., and John Thomas of Southern California — had vowed, in their words, to help “fight Covid-19 with the industry’s broadest product selection from hundreds of suppliers.”
Within hours of the enormous wire transfer, the deal was dead and California was clawing its money back — $456.9 million, nearly half of what the Legislature had allocated for the state’s pandemic response. The payment to Blue Flame and cancellation of the deal six hours later were revealed in copies of checks, wire transfer receipts and emails obtained by CalMatters through a public records request.
It’s unclear why California decided to make such a large purchase for 100 million face masks from a new and untested company. Days ago, Maryland canceled its own order with Blue Flame and asked the state attorney general to investigate the company for its failure so far to deliver the supplies. And California Democratic Rep. Katie Porter also has raised questions about the company’s credibility.
</snip>
On March 26, as the coronavirus pandemic was mounting and governors across America scrambled to secure medical supplies, the state of California wired almost a half-billion dollars to a company that had been in business for just three days.
The recipient: Blue Flame Medical LLC, a Delaware-based company headed by two Republican operatives who jumped into the medical supply business on March 23. The pair — Mike Gula from Washington, D.C., and John Thomas of Southern California — had vowed, in their words, to help “fight Covid-19 with the industry’s broadest product selection from hundreds of suppliers.”
Within hours of the enormous wire transfer, the deal was dead and California was clawing its money back — $456.9 million, nearly half of what the Legislature had allocated for the state’s pandemic response. The payment to Blue Flame and cancellation of the deal six hours later were revealed in copies of checks, wire transfer receipts and emails obtained by CalMatters through a public records request.
It’s unclear why California decided to make such a large purchase for 100 million face masks from a new and untested company. Days ago, Maryland canceled its own order with Blue Flame and asked the state attorney general to investigate the company for its failure so far to deliver the supplies. And California Democratic Rep. Katie Porter also has raised questions about the company’s credibility.
</snip>
...and:
Maryland cancels $12.5M contract for PPEs state says weren't delivered
BALTIMORE —
Maryland canceled a contract over the weekend for $12.5 million worth of personal protective equipment and is seeking a refund.
|| Coronavirus updates | Maryland's latest numbers | Rumor Control ||
State officials said Blue Flame Medical never delivered the PPE the state ordered. According to The Washington Post, Maryland signed a deal April 1 to buy 1.5 million N95 masks and 110 ventilators.
The state agreed to pay $7 million for the masks and $4.5 million for the ventilators, and paid an initial deposit of $6.2 million.
The purchase order lists June 30 as a delivery deadline, but state officials said they agreed on a shipping date of April 14.
Last week, Maryland's director of procurement sent Blue Flame Medical a letter saying the company had yet to deliver any of the items, and he gave the company 48 hours to provide documentation or Maryland would cancel its contract.
</snip>
BALTIMORE —
Maryland canceled a contract over the weekend for $12.5 million worth of personal protective equipment and is seeking a refund.
|| Coronavirus updates | Maryland's latest numbers | Rumor Control ||
State officials said Blue Flame Medical never delivered the PPE the state ordered. According to The Washington Post, Maryland signed a deal April 1 to buy 1.5 million N95 masks and 110 ventilators.
The state agreed to pay $7 million for the masks and $4.5 million for the ventilators, and paid an initial deposit of $6.2 million.
The purchase order lists June 30 as a delivery deadline, but state officials said they agreed on a shipping date of April 14.
Last week, Maryland's director of procurement sent Blue Flame Medical a letter saying the company had yet to deliver any of the items, and he gave the company 48 hours to provide documentation or Maryland would cancel its contract.
</snip>
From March 27:
Republican fundraiser looks to cash in on coronavirus
A longtime Republican fundraiser sent an email to his clients on Thursday abruptly announcing that he would no longer be working for them.
The reason: He saw an opportunity to capitalize on the coronavirus response.
“Over the last 14 days I have built another business outside politics and will be focusing my full attention there,” he wrote in the email, which was obtained by POLITICO.
The fundraiser, Mike Gula, didn’t specify his new line of work in the email. But in an interview, he said he’d started a new company selling medical equipment that’s been in short supply during the coronavirus pandemic.
The company, Blue Flame Medical LLC, was formed Monday in Delaware, according to state records. Its website says it sells coronavirus testing kits, N95 respirator masks, “a wide selection” of personal protective equipment and other “hard to find medical supplies to beat the outbreak.”
Asked how he’d managed to procure such equipment when there are shortages in hospitals across the country, Gula said, “I have relationships with a lot of people.”
</snip>
A longtime Republican fundraiser sent an email to his clients on Thursday abruptly announcing that he would no longer be working for them.
The reason: He saw an opportunity to capitalize on the coronavirus response.
“Over the last 14 days I have built another business outside politics and will be focusing my full attention there,” he wrote in the email, which was obtained by POLITICO.
The fundraiser, Mike Gula, didn’t specify his new line of work in the email. But in an interview, he said he’d started a new company selling medical equipment that’s been in short supply during the coronavirus pandemic.
The company, Blue Flame Medical LLC, was formed Monday in Delaware, according to state records. Its website says it sells coronavirus testing kits, N95 respirator masks, “a wide selection” of personal protective equipment and other “hard to find medical supplies to beat the outbreak.”
Asked how he’d managed to procure such equipment when there are shortages in hospitals across the country, Gula said, “I have relationships with a lot of people.”
</snip>
Any silent partners named Trump or Kushner involved in any of this?
7 replies
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= new reply since forum marked as read
