Two Houston area men have been arrested after committing wire fraud during the COVID-19 pandemic, announced U.S. Attorney Jennifer B. Lowery on Tuesday.
Caleb Jordan McCreless, 32, of Richmond, and Christopher Luke McGinnis, 39, of Spring, were both arrested on Tuesday and charged with conspiracy to commit wire fraud. Officials said McCreless also faces an additional five counts of wire fraud.
The six-count indictment alleges McCreless purported to have access to medical-grade nitrile gloves during the demand for medical personal protection equipment amidst the COVID-19 pandemic. Medical companies allegedly paid him $39 million to buy the in-demand gloves. However, McCreless did not have any gloves at all and never delivered them to anyone that had made purchases, according to the charges.
McGinnis served as a logistics operator and delayed or stalled the delivery process when companies became concerned about their order of gloves not arriving, according to the charges.
Health care professionals who were on the front lines during the fight against COVID-19 were expected to use gloves, officials said.
As a result of this scheme, one victim allegedly lost over $13 million.
The indictment also includes the forfeiture of McCreless’ residence in Fort Bend County, which is valued at over $2 million. The charges allege the house was purchased with money profited during the scheme.
If convicted, both men face up to 20 years in federal prison and a possible $250,000 maximum fine. The two men are expected to make their first court appearance on Wednesday, Aug. 3, before U.S. Magistrate Judge Yvonne Ho.
The FBI and Harris County Constable’s Office - Precinct 1 conducted the investigation. Assistant U.S. Attorney Thomas H. Carter is prosecuting the case.
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Caleb Jordan McCreless, 32, of Richmond, and Christopher Luke McGinnis, 39, of Spring, were both arrested on Tuesday and charged with conspiracy to commit wire fraud. Officials said McCreless also faces an additional five counts of wire fraud.
The six-count indictment alleges McCreless purported to have access to medical-grade nitrile gloves during the demand for medical personal protection equipment amidst the COVID-19 pandemic. Medical companies allegedly paid him $39 million to buy the in-demand gloves. However, McCreless did not have any gloves at all and never delivered them to anyone that had made purchases, according to the charges.
McGinnis served as a logistics operator and delayed or stalled the delivery process when companies became concerned about their order of gloves not arriving, according to the charges.
Health care professionals who were on the front lines during the fight against COVID-19 were expected to use gloves, officials said.
As a result of this scheme, one victim allegedly lost over $13 million.
The indictment also includes the forfeiture of McCreless’ residence in Fort Bend County, which is valued at over $2 million. The charges allege the house was purchased with money profited during the scheme.
If convicted, both men face up to 20 years in federal prison and a possible $250,000 maximum fine. The two men are expected to make their first court appearance on Wednesday, Aug. 3, before U.S. Magistrate Judge Yvonne Ho.
The FBI and Harris County Constable’s Office - Precinct 1 conducted the investigation. Assistant U.S. Attorney Thomas H. Carter is prosecuting the case.
Continue reading...