HOUSTON — Two Houston-area men have been charged with conspiracy to commit and committing wire fraud in a $39 million personal protection equipment fraud scheme, according to the US Department of Justice.
Caleb Jordan McCreless, 32, from Richmond, Texas was allegedly paid $39 million by medical companies for medical-grade nitrile gloves he had claimed to have access to. According to the charges, McCreless did not actually have any gloves nor did they deliver any gloves to the companies who purchased them.
McCreless faces a charge of conspiracy to commit wire fraud and five additional charges of wire fraud.
Christopher Luke McGinnis, 39, from Spring, Texas, allegedly served as a logistics operator. According to the DOJ, McGinnis reportedly stalled the delivery process when the involved companies grew concerned that their order had not been delivered.
McGinnis faces a charge of conspiracy to commit wire fraud.
According to the DOJ, one of their clients allegedly lost more than $13 million.
The indictment calls for the forfeiture of McCreless' house in Ft. Bend County, which he allegedly bought with money gained from the scheme. The DOJ said the house is valued at more than $2 million.
The two are expected to go before a judge on Wednesday.
If convicted, the two could face up to 20 years in federal prison and up to a $250,000 fine.