CHICAGO — A Burr Ridge businessman was sentenced Monday after admitting to swindling two hospitals that had sought coveted protective face masks in the early days of the COVID-19 pandemic.
Dennis W. Haggerty, Jr., 46, was sentenced to 57 months in prison after pleading guilty earlier this year to federal wire fraud and money laundering charges.
Haggerty was first charged in a criminal complaint filed in November 2020. Prosecutors said the one-time president of the biotechnology company At Diagnostics Inc. cheated two large university hospitals in Chicago and Iowa City, Iowa.
Court records identified the hospitals as Northwestern Memorial Healthcare and the University of Iowa Medical Center.
Prosecutors said Haggerty’s company agreed to sell 500,000 N95 masks to the University of Iowa Medical Center for $2.495 million and one million N95 masks to Northwestern Memorial Healthcare, respectively.
Instead, the hospitals deposited money to business accounts solely controlled by Haggerty and the orders were never fulfilled. Prosecutors proved that Haggerty did not return the money, opting to spend the funds on personal expenses and benefits.
Haggerty will also have to pay more than $1.9 million in restitution.
The Associated Press contributed to this report.