What is the NYC Ventilators Lawsuit?
After not receiving 130 ventilators from a medical supply company this past spring, New York City was scammed for more than $4 million it has paid for lifesaving equipment.
Due to this, attorneys for New York City have alleged the Florida-based medical supply wholesaler called Global Medical Supply Group LLC and its joint venturer, defendant Frederick Levy. The lawsuit claims that the company made a scheme with a Chinese export company to import the equipment from China.
Unfortunately, the Chinese company has no authority to trade ventilators under Chinese law. Furthermore, the Global Medical Supply Group failed to secure approval from the U.S. Food and Drug Administration (FDA) to import ventilators.
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More About The NYC Ventilators Lawsuit
In this lawsuit, the defendants are the following:
- Global Medical Supply Group LLC;
- Owners and officers, Tyler Gelb and Victoria Conlen, of Boca Raton, Florida;
- Frederick Levy of Highland Beach, Florida;
- Nations Fast Tax & Accounting 2 Inc.;
- Zhejiang Jinrong Trading Co. Ltd.;
- Zhu Yong of Zhejiang, China, owner and officer of Zhejiang Jinrong Trading Co.
The lawsuit alleges that Gelb created Global Medical Supply Group in the middle of March to sell personal protective equipment that was in great demand because of the coronavirus outbreak in the U.S.
Then, Gelb, Conlen, and Levy planned to source ventilators in China through Zhejiang Jinrong Trading Co. A footwear supplier that doesn’t have the authority to trade ventilators.
Upon negotiation, New York City ordered 130 Aeonmed model VG70 ventilators on March 30. The city also paid the full price of the order, $8,261,500.
Unfortunately, the ventilators never came.
“Exploiting the COVID-19 crisis for their own gain, defendants obtained millions of dollars from New York City through false statements about their ability to source the equipment in China, where the market for ventilators was in a state of frenzy due to overwhelming worldwide demand,” lawyers for the city alleged.
By June 10, Global Medical Supply Group only managed to return $3,977,594. Thus, they still have an outstanding balance due to the city of $4,283,905,
The lawsuit claims that the defendants committed the following allegations: breach of contract, unjust enrichment, money had and received, account stated, common law conversion, common law fraud, negligent misrepresentation, as well as several violations of New York’s False Claims Act.
Due to this, the lawsuit demands the following: $4.2 million-plus interest; punitive damages; a $12.8 million fine for violating the New York False Claims Act; a civil penalty of at least $6,000 for each violation of New York state finance law; and attorneys’ fees.
Editor’s note on The NYC Ventilators Lawsuit:
This piece is to inform you about The NYC Ventilators Lawsuit.
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