A New York woman admitted she took more than $8 million that was supposed to buy roughly 12 million masks during the earliest months of the COVID-19 pandemic, and prosecutors say the money was routed away instead of used to deliver critical supplies.
Julie Dotton, 53, of Orchard Park, New York, pleaded guilty to wire fraud after an investigation found she misrepresented her ability to obtain personal protective equipment. Court records place the scheme between March 2020 and October 2020, when demand for masks and other PPE was at its peak.
Prosecutors say Dotton used a nominal business she controlled to contract with a Canadian company that had been an authorized supplier to two provinces. That company agreed to pay about $8.2 million for approximately 12 million face masks based on Dotton’s assurances she could deliver the goods.
According to the filings, the Canadian company wired the $8.2 million to what it was told was a third-party escrow account tied to the transaction. Instead of channeling the funds into procurement and shipment, Dotton is accused of directing payments to various third parties for her own benefit.
When the buyer pressed for delivery or a refund, the documents say Dotton offered excuses and delays while the money continued to be disbursed. Investigators describe a pattern of superficial attempts to buy PPE that never translated into the promised bulk deliveries to the Canadian provinces.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, announced the guilty plea. “The defendant took advantage of a provider’s need for life-saving personal protective equipment to line her own pockets,” stated United States Attorney Nocella. “Our Office will continue to vigorously prosecute defendants who shamefully seek to profit from global health emergencies and crises like the COVID-19 pandemic.”
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The case proceeded before United States District Judge Gary R. Brown. When sentenced, Dotton faces a maximum sentence of 20 years’ imprisonment as well as restitution of at least $8.2 million in addition to $8.2 million in criminal forfeiture.
Investigators say Dotton made only a nominal effort to secure inventory and instead arranged transfers that benefited herself and associates. The indictment describes multiple disbursements away from legitimate procurement channels and into accounts controlled or directed by Dotton’s associates.
Prosecutors laid out steps in which the money moved from the purchaser to the supposed escrow and then on to third parties, rather than to manufacturers or verified suppliers. The Canadian buyer repeatedly requested performance or a return of funds and received delays and false reassurances while the promised PPE did not materialize.
“Julie Dotton deprived a personal protective equipment provider of critical supplies during a global pandemic, stealing more than $8 million for her own benefit. The FBI continues to track down those who exploited the COVID-19 crisis and ensure they face the consequences for their selfish greed,” stated FBI Assistant Director in Charge Barnacle.
The Office’s Business and Securities Fraud Section is handling the government’s case. Assistant United States Attorneys Adam R. Toporovsky and Joshua Dugan are prosecuting, with assistance from Paralegal Specialist Timothy Migliaro.
Beyond the criminal counts, the filings demand financial remedies aimed at returning funds and stripping ill-gotten gains, including criminal forfeiture tied to the $8.2 million transaction. If the court imposes the statutory maximums and financial orders, the restitution and forfeiture totals would match the principal the company paid for the promised masks.
The case underscores how some actors allegedly exploited early pandemic shortages by misrepresenting access to scarce supplies. Authorities say law enforcement will continue to pursue individuals who used the crisis to enrich themselves at the expense of public health and provider organizations.
