Dennis W. Haggerty Jr., who swindled more than $2.5 million from hospitals in Chicago and Iowa, was sentenced to 57 months in prison Monday.
According to federal court documents, both hospitals agreed to buy more than $3 million worth of N95 face masks from Haggerty’s newly formed medical supply company in March 2020 during the pandemic. Two years later, the former Burr Ridge businessman admitted to transferring the money to personal accounts and spending the stolen funds on Maseratis and other personal expenses.
Haggerty was charged with wire fraud and money laundering. He is now expected to pay nearly $2 million in restitution to Northwestern Memorial Healthcare and University of Iowa Medical Center, along with a $1.6 million forfeiture judgment, the court documents said.
In Haggerty’s defense statement, his attorney wrote that Haggerty is offering to sell his house, which is worth more than $800,000, to help pay his debts to both hospitals.
Additionally, Haggerty said he had no intention of committing fraud when the first hospital placed an order for face masks.
Haggerty said he learned the N95 masks ordered by the first hospital were not going to be delivered as promised from a manufacturing company. And when the hospital requested a refund for the missing masks, Haggerty then paid the hospital $250,000 with funds…
