Company That California Canceled Large PPE Deal With Being Sued By State Of Maryland
A company that was paid to provide Californians and several other states with personal protection equipment is being investigated by the Department of Justice and the attorney general of Maryland.
California canceled its $600 million order with Blue Flame Medical, LLC, a firm that agreed to sell the state 100 million N95 masks, a person close to the matter told the Wall Street Journal. The firm was created by Republican fundraiser Mike Gula just days before March 26 when the deal was made.
Maryland Attorney General Brian Frosh alleges Blue Flame Medical failed to perform and misrepresented itself when it didn't deliver on the state's order of equipment.
According to Post reporting, June 30 was set to be Maryland's delivery deadline for the equipment, but only because June 30 is the end of the fiscal year. According to a Blue Flame invoice obtained by the Post, the agreed-upon shipping date for masks and ventilators was April 14.
An attorney for Blue Flame, Ethan Bearman, has said to the Washington Post that the firm acted in good faith with the states. He declined to comment about the Justice Department investigation.