Chicago area businessman gets nearly 6 1/2 years for embezzling $1.85 million from COVID-19 testing kit company
CHICAGO (CBS) -- The former chief operating officer of a COVID-19 testing kit company has been sentenced to an additional 6 years and 5 months in prison, after he admitted to embezzling more than $1.85 million while already facing charges for a prior fraud scheme.
Dennis Haggerty, 48, of Burr Ridge, pleaded guilty earlier this year to wire fraud, admitting he embezzled the money from his Willowbrook-based company's bank account while a separate federal fraud case against him was still pending.
According to federal prosecutors, Haggerty issued payments from the company's bank account for services and goods provided by either himself or the company's main vendor, a COVID-19 testing kit supplier, when in reality no goods or services had been provided. Rather than sending the money to the company's supplier, it was wired to a bank account Haggerty controlled, and he spent on himself.
On Thursday, U.S. District Judge Robert Blakey sentenced Haggerty to 6 years and 5 months in prison for the embezzlement case.
That sentence must be served after Haggerty completes an earlier sentence of 4 years and 9 months in prison for the fraud case he was already facing when he was indicted in the embezzlement case.
In that earlier case, Haggerty pleaded guilty in 2022 to ripping off hospitals at the beginning of the COVID-19 pandemic, admitting he took millions of dollars from hospitals in exchange for personal protective equipment he never provided.
Federal prosecutors said Haggerty swindled major university hospitals in Chicago and Iowa – taking $2.495 million from one hospital.
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, but never delivered on that promise, all while wiring money from the hospitals into an account to which only he had access.
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.
Along with the fast cars, Haggerty was 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.