The head of a suburban biotechnology company formed as the pandemic hit has been charged with swindling more than $2.6 million from two hospitals that ordered personal protective equipment.
Dennis Haggerty, 44, was arrested Tuesday morning and charged with wire fraud. Federal officials also searched the offices of his company, At Diagnostics in Willowbrook, which was formed in March.
Haggerty is accused of stealing money from a large university hospital in Chicago and another in Iowa City, Iowa, and using some of it for personal benefit, including two Maserati cars. The hospitals are not named in the complaint.
The hospitals ordered 1 million N95 masks from At Diagnostics and, combined, paid more than $3 million for them, according to the complaint. The hospitals deposited the money into a bank account that was supposedly the company’s but was controlled only by Haggerty.
After the masks were not delivered on time, Haggerty told one hospital his bank had no record of the money being deposited, the complaint states. Confronted by his two business partners, Haggerty allegedly altered a bank statement to make it appear the money was never received.
Haggerty spent some of the money on two Maserati cars and a Land Rover SUV, according to the complaint, which says he failed to return more than $2.6 million to the hospitals.
Haggerty was formally read the charges against him Tuesday afternoon in U.S. District Court and is due back in court at 1 p.m. Nov. 19 for a pretrial hearing. He faces up to 20 years in prison.
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