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CHICAGO (CBS) — A businessman pleaded guilty Tuesday to a scheme that ripped off hospitals at the beginning of the COVID-19 pandemic – when the world desperately needed masks.
As CBS 2’s Charlie De Mar reported, Dennis Haggerty Jr., 45, of Burr Ridge, admitted in U.S. District Court Tuesday to taking millions of dollars from hospitals in exchange for personal protective equipment – but never issuing a single mask.
The U.S. Attorney’s office said Haggerty swindled major university hospitals in Chicago and Iowa – taking $2.495 million from one hospital.
Prosecutors said Haggerty spent part of the money on luxury for himself – including two flashy Maseratis – a 2013 Maserati Granturismo and a 2017 Maserati Ghibli – as well as and a 2015 Range Rover sport-utility vehicle.
On Tuesday, Haggerty pleaded guilty to wire fraud and money laundering – preying on health care providers’ desperate search for PPE at the start of the pandemic.
Haggerty operated At Diagnostics from an office park in southwest suburban Willowbrook, where he promised to deliver more than 1 million N95 respirator masks to two different hospitals, the money was wired into an account to which only Haggerty had access. And as you may already have guessed, those masks were never delivered.
Online, Haggerty bills himself as an entrepreneur with a thirst for more – and says his next chapter has yet to be written. But federal prosecutors say his next venture most likely will be in prison.
Along with the fast cars, Haggerty is accused of paying credit card companies $190,000, withdrawing $147,000 in cash, and giving a friend $2,000 — all money Haggerty fooled hospitals into giving him.
We stopped by Haggerty’s sprawling Burr Ridge home. Somebody was noticeably there, but didn’t open the door.
We spoke with Neighbor Ron Bell.
“He’s taking advantage of a situation. There needs to be consequences for that crime, and there needs to be a penalty associated,” Bell said. “God knows where that money is at, I mean – which is kind of ironic, right? Because where is the money?”
Wire fraud is punishable up 20 years in prison, and money laundering comes with a possible sentence of 10 years. Haggerty will be sentenced in May.
Source: ChicagoCBS
