A suburban Chicago company is shelling out a hefty sum to settle a federal fraud probe. Advanced Inventory Management, Inc. (AIM), based in Mokena, has agreed to a $1 million fine over allegations that it was essentially peddling misbranded medical gear that was imported under false pretenses, as outlined in a U.S. Department of Justice release.
Under the leadership of CEO Anthony Iaderosa, AIM's employees were directed to heat-gun their way through labels warning that their products were not for resale in the U.S. These products were then sold stateside with a generous markup that saw the company’s profits soar between 35% and 50%, despite admitting to pocketing approximately $500,000 of this gambit. By employing this tactic, admitted by AIM in the court documents, products were misbranded as per the U.S. Food, Drug, and Cosmetic Act.
AIM and Iaderosa have a period—three years for the company, one for Iaderosa—to comply with a few conditions or face prosecution. These terms include the $1 million payment and instating a new compliance and ethics program to avoid future violations. If AIM or Iaderosa skips out on any of their obligations, the U.S. Attorney's Office won’t hesitate to go ahead with prosecution for the charges.
Watching closely will be Morris Pasqual, Acting United States Attorney, and Ronne Malham, Special Agent-in-Charge of the FDA’s Chicago Field Office of Criminal Investigations.
