3M stops N95 scheme in Indiana, resolving fraud lawsuit
July 09 2020 - 9:45AM
Business Wire
The resolution of this suit permanently stops a fraudulent
N95 scheme and requires cooperation from Defendants with law
enforcement.
3M has resolved a case in federal court in Indiana against
ZeroAqua, halting a fraudulent N95 scheme involving the promise of
billions of nonexistent N95 respirators.
The claims against Defendants have been resolved through the
entry of a consent judgment, a court-entered permanent injunction,
and a payment to 3M for donation to a COVID-19 related charity.
“The resolution of this case has permanently stopped a scam that
used 3M’s name and the promise of nonexistent N95 respirators to
target emergency officials and profiteer during the pandemic,” said
William Childs, 3M Senior Counsel. “We will continue our global
fight against fraud and work with law enforcement to help punish
bad actors.”
As part of the settlement Defendant Zachary Puznak issued this
apology:
“I would like to apologize to the State of
Indiana, Luke Bosso, and the people of 3M. If I understood then
what I understand now, I never would have gotten involved in this
scheme. I have testified under oath that the people who contacted
me were attempting to take advantage of my best intentions and use
me as a vehicle for their attempt to commit fraud on the State of
Indiana. Public officials and healthcare workers are heroes in this
important fight. I have done and am going to do what is necessary
to make this right. I am cooperating and have turned over all my
communications with the architects of this scheme to 3M, who will
share them with law enforcement. I have also sat for a deposition
to tell my story on the record to help educate the public
officials, health care administrators, and the general public to
ensure they do not fall victim to a similar scheme in the future. I
am committed to assisting 3M and law enforcement to see justice
served.”
As part of the lawsuit, Puznak testified under oath -- and
produced documents consistent with his testimony – that he was
himself deceived by those he called the “architects” of the scheme
to defraud Indiana officials. Puznak testified that he was a mere
conduit through which the “architects” tried to defraud Indiana
officials out of $14.25 billion for non-existent N95 respirators.
3M intends to pursue additional court action against the additional
bad actors identified in its investigation of the matter and in
Puznak’s testimony. 3M appreciates Defendants’ cooperation and
assistance, including sitting for a deposition, with 3M’s and law
enforcement’s efforts to reduce fraud and price gouging.
3M has not, and will not, increase the prices of its respirators
as a result of the pandemic. 3M has filed 17 lawsuits in the U.S.
and Canada to combat fraud. The damages 3M seeks in these
enforcement efforts are for the harm these bad actors cause and to
punish wrongdoers, and any damages recovered are donated to
COVID-19 relief efforts at nonprofit organizations, including
Direct Relief.
3M is represented by law firm Faegre Drinker Biddle & Reath
in this matter.
Resources to fight fraud
3M has launched a website that provides more information on
these and other 3M efforts to fight respirator fraud,
counterfeiting, and price gouging. This website includes details of
3M’s enforcement activities, tips on how to spot fraudulent product
offers, counterfeits, and price gouging, expectations of 3M’s
authorized distributors, and information on different types of 3M
respiratory products. It also contains 3M’s hotline phone numbers
around the world and a place to report suspected fraud to 3M.
About 3M
At 3M, we apply science in collaborative ways to improve lives
daily. With $32 billion in sales, our 96,000 employees connect with
customers all around the world. Learn more about 3M’s creative
solutions to the world’s problems at www.3M.com or on Twitter @3M
or @3MNews.
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version on businesswire.com: https://www.businesswire.com/news/home/20200709005625/en/
3M Contact: Jennifer Ehrlich 651-736-9430
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