“These delivery failures have caused multiple states and localities to cancel millions of dollars in orders for desperately needed gear and equipment during an unprecedented public health emergency,” Mr. Pallone said. Connect with friends faster than ever with the new Facebook app. WASHINGTON — The Justice Department has opened a criminal investigation into Blue Flame Medical, a company created by two well-connected Republican operatives who started selling COVID-19 supplies this spring as the virus spread across the country. It shouldn’t be up to the one agency. Justice Department investigates Blue Flame Medical after claims it failed to provide masks to Maryland, California On Monday, state lawmakers in California discussed what went wrong with the Blue Flame contract during an oversight hearing on problems with buying medical supplies in an emergency. A few hours later, the state canceled the contract. This content is currently not available in your region. Justice Department investigates Blue Flame Medical after claims it failed to provide masks to Maryland, California. Some California lawmakers seek probe into coronavirus equipment supplier contracts, including the massive payment — and reversal — to Blue Flame Medical. He declined to comment about the Justice Department investigation. An attorney for Blue Flame, Ethan Bearman, has said the company acted in good faith with the states. We rely on readers like you to uphold a free press. We use cookies and other technologies to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests. By clicking “I agree” below, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platforms. State officials say the supplies were due weeks later. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. State officials said Blue Flame Medical failed to deliver masks and ventilators as promised. The funds were returned the same day. Blue Flame was founded in March by Republican fundraiser Mike Gula and a political consultant in California. Maryland canceled a deal with Blue Flame for 1.5 million masks and more than 100 ventilators after the company failed to deliver on time, The Wall Street Journal reported earlier this month. Blue Flame Medical, a supply company created by two political consultants during the coronavirus pandemic, filed a lawsuit Friday alleging that officials at … See our, Read a limited number of articles each month, You consent to the use of cookies and tracking by us and third parties to provide you with personalized ads, Unlimited access to washingtonpost.com on any device, Unlimited access to all Washington Post apps, No on-site advertising or third-party ad tracking. ‘‘The only solution is that there has to be some oversight. A person familiar with the inquiry said that while the Justice Department is studying the transactions, there has been no indication so far that charges will be filed. The matter was referred to Maryland Attorney General Brian Frosh, a Democrat, last week for review. Blue Flame Medical LLC is a Delaware Limited-Liability Company filed on March 23, 2020. There should be a cross-section of folks, from the minority business community, the local business community, the medical community.’’, ‘‘I understand we need to act quickly. Show full articles without "Continue Reading" button for {0} hours. Carter noted that many minority businesses and small companies have reached out to the Maryland Emergency Management Agency about possibly supplying the state with tests, protective equipment, or testing materials, but have not heard back. That contract, which was first reported Wednesday by the California news website CalMatters, was then abruptly canceled, and the state scrambled to get its $457 million deposit back. Thomas recently worked as a strategist and fund-raiser for Republican Don Sedgwick, who sought to run against California Democratic Representative Katie Porter, but lost in the March primary. California had separately hired the company to provide 100 million face masks, according to two people familiar with the transaction. Asked what law enforcement officials are seeking, Ricci replied, ‘‘Federal investigators have asked us not to disclose that information.’’. Blue Flame Medical’s attorney Ethan Bearman said in a Tuesday statement that the company “is devoted to getting masks and ventilators” to Maryland. Days after the company was started, Blue Flame signed a $600 million contract with California officials to supply masks. ‘‘My question was always, what is the process for vetting companies and determining who would be used?’’ Carter said, adding that it is clear that at least one of the companies selected could not perform. The pair planned to use their connections to government officials and makers of medical supplies in China to sell masks, gloves, gowns, ventilators and other items to state governments, hospitals and first responders. ‘‘After directing Maryland’s attorney general to investigate this company last week, Governor Hogan is encouraged to hear that there is an ongoing federal investigation as well,’’ Ricci said. Prosecutors are focused on at least two contracts that the company signed for medical masks and other equipment with Maryland and California, according to two people familiar with the matter who spoke on the condition of anonymity because of the sensitive nature of the matter. Mr. Pallone and fellow Democratic lawmakers plan to send a letter to Blue Flame officials requesting answers to questions about the company’s canceled contracts. A letter sent to the firm on April 30 by Danny Mays, Maryland’s director of procurement, revealed deep frustration. Blue Flame Medical was founded just weeks ago by Mike Gula, a former Republican Party fundraiser and consultant whose resume shows no experience in the medical … “We are the largest global network of COVID-19 medical suppliers providing healthcare logistics and hard to find medical supplies to beat the outbreak,” Blue Flame boasts. His firm has raised campaign money for Senators Patrick Toomey of Pennsylvania, Steve Daines of Montana, Ron Johnson of Wisconsin, and dozens of other influential Republicans. “[Blue Flame] purports to be ‘one of the largest global network [sic] of COVID-19 medical suppliers’ and reportedly supplies ventilators, respirators, COVID-19 test kits, surgical masks, and other hard to find types of PPE. The company's filing status is listed as Active and its File Number is 7911342. You also agree to our Terms of Service. When California tried to send the company a down payment for roughly $450 million, the state’s bank flagged the wire transfer as suspicious because Blue Flame bank’s account had been opened days earlier. A congressional oversight panel said it would conduct a probe of a Blue Flame Medical after several states canceled contracts with the coronavirus-supply company founded by a former GOP fundraiser. Blue Flame was started in late March by Michael Gula, a Republican fund-raising and lobbying consultant in Washington, and John Thomas, a California political consultant. 87990cbe856818d5eddac44c7b1cdeb8, Appeared in the May 13, 2020, print edition as '. Both states ultimately canceled those contracts. We’re not getting the supplies.’’. By clicking “I agree” below, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platforms. “We are deeply concerned by the numerous reports regarding Blue Flame Medical LLC’s failure to deliver on contracts with state and local governments to provide critical medical supplies,” the chairman of the committee, Rep. Frank Pallone (D., N.J.) said in a press release announcing the probe. The two Republican consultants incorporated their company in Delaware on March 23 and a week later received the contract from Maryland. Bearman acknowledged that delays have occurred in filling the order, but he said such problems have become commonplace this spring during the chaotic rush to locate masks and other PPE. The new European data protection law requires us to inform you of the following before you use our website: We use cookies and other technologies to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests. ‘‘As Blue Flame Medical LLC has failed to honor its delivery commitment under the terms and conditions, [the Department of General Services] is now formally requiring Blue Flame Medical to cure this deficiency.’’. The company ‘‘fully intends to honor that contract’’ to supply 1.5 million masks and 110 ventilators by June 30, Bearman said. The House Energy and Commerce Committee said it has launched an investigation into Blue Flame Medical LLC after several states canceled contracts with the company. The company previously has said it has done nothing wrong and would cooperate with any investigations. Maryland officials signed a $12 million contract on April 1 and Blue Flame received a down payment of $6 million. A Blue Flame lawyer didn’t immediately respond to a request for comment. Write to Brody Mullins at brody.mullins@wsj.com and Susan Pulliam at susan.pulliam@wsj.com, Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. The agreed-upon shipping date for the masks and ventilators was April 14, according to a Blue Flame invoice obtained by the Post. https://www.wsj.com/articles/congress-to-investigate-protective-gear-supplier-blue-flame-11589299028. Maryland officials grew suspicious and canceled the order on May 1 and referred the matter to the state attorney general office for review. Blue Flame received a down payment of nearly $6.3 million from Maryland in early April — after promising to provide, within a few weeks, desperately needed PPE for front-line medical personnel dealing with the novel coronavirus. A Justice Department spokesman declined to comment Wednesday. WASHINGTON—A congressional oversight committee said it would conduct a probe of a coronavirus-supply company founded by a former prominent Republican fundraiser. In a phone interview Wednesday, Maryland state Senator Jill Carter, a Baltimore Democrat, said the incident highlights a need for greater oversight over purchases that state officials are making to curb the pandemic’s spread. He startled some longtime clients in March when he announced he was quitting the fund-raising world during an election year to start the medical supply business with Thomas. The investigation will be led by the committee’s investigative subcommittee, which is run by Rep. Diana DeGette, a Democrat from Colorado. Bearman said in a statement Tuesday that the complaints from Maryland were puzzling.

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