Julie Dotton pleaded guilty today in federal court in Central Islip to wire fraud, admitting to a scheme that defrauded a Canadian company seeking to purchase personal protective equipment (PPE) at the onset of the COVID-19 pandemic. Dotton received $8.2 million but never provided the promised surgical masks.
According to court filings, between March and October 2020, Dotton, 53, of Orchard Park, New York, misrepresented her ability to obtain PPE to a Canadian company that supplied two Canadian provinces. She used a nominal entity she controlled to contract for approximately 12 million face masks for $8.2 million. Dotton then directed the company to wire the payment to a purported third-party escrow agent's bank account.
Instead of procuring the PPE, Dotton caused the funds to be disbursed to various third parties for her benefit. When the company demanded delivery or a refund, Dotton offered excuses for several months while continuing to divert the money.
United States Attorney Joseph Nocella, Jr. said, "The defendant took advantage of a provider’s need for life-saving personal protective equipment to line her own pockets." James C. Barnacle, Jr., FBI Assistant Director in Charge, added, "The FBI continues to track down those who exploited the COVID-19 crisis and ensure they face the consequences for their selfish greed."
Dotton faces a maximum sentence of 20 years’ imprisonment, along with restitution of at least $8.2 million and $8.2 million in criminal forfeiture when sentenced by United States District Judge Gary R. Brown.