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The DOJ is investigating a firm run by 2 Republican operatives after claims that it failed to deliver critical COVID-19 supplies to Maryland and California

May 7, 2020, 00:00 IST
Business Insider
REUTERS/Nicholas Pfosi
  • The Justice Department has launched a criminal investigation into a firm created by two Republican operatives that sells medical supplies related to COVID-19, The Washington Post reported.
  • According to The Post, prosecutors began scrutinizing the firm, Blue Flame Medical, after claims that it failed to provide masks and other protective equipment to Maryland and California. Both states canceled their contracts with the firm.
  • A lawyer for Blue Flame Medical told Business Insider in a statement that the firm was "hoping to deliver the shipment of masks and ventilators in April significantly earlier than the agreed upon June date."
  • But the firm alleges that the Chinese government interfered with the ability of its supplier in China to fulfill the shipment, and that Blue Flame has kept Maryland "closely apprised" of the developments.
  • "Pursuant to the agreed upon contract with the state of Maryland, Blue Flame Medical has until June 30, 2020 to fulfill the purchase order. Blue Flame Medical intends to meet that obligation," the statement said.
  • Visit Business Insider's homepage for more stories.
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The Justice Department has opened a criminal investigation into a firm created by two Republican operatives that sells medical supplies related to COVID-19, The Washington Post reported.

According to The Post, prosecutors began scrutinizing the firm, Blue Flame Medical, after claims that it failed to provide protective masks and other equipment to Maryland and California after the states entered into contracts with the company.

Both states have canceled their contracts with the company.

Ethan Berman, a lawyer for Blue Flame, provided the following statement to Business Insider regarding the contracts and delivery of materials:

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"We were hoping to deliver the shipment of masks and ventilators in April, significantly earlier than the agreed upon June date. Because of the actions of the Chinese government, which is completely out of our control, Blue Flame Medical's supplier in China has confirmed that the Chinese government interfered with its ability to fulfil the shipment. Blue Flame Medical has kept the state of Maryland closely apprised as to all of these developments. Pursuant to the agreed upon contract with the state of Maryland, Blue Flame Medical has until June 30, 2020 to fulfill the purchase order. Blue Flame Medical intends to meet that obligation."

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