A medical device company based in Mokena, Illinois, has agreed to pay a $1 million fine following a federal criminal investigation into allegations of selling misbranded products imported from abroad. Advanced Inventory Management, Inc. (AIM) admitted to importing medical products at lower prices from international distributors compared to U.S. sources.
According to a Statement of Facts filed in the U.S. District Court in Chicago, AIM employees, under the direction of CEO Anthony Iaderosa, removed labels with hair dryers that indicated the products were only for sale outside the United States. The company then sold these products domestically at marked-up prices, achieving profit margins between 35% and 50%. This tactic reportedly earned AIM approximately $500,000.
The resolution involves deferred prosecution agreements where both AIM and Iaderosa acknowledged that their actions resulted in the products being misbranded under U.S. law. They also admitted to concealing these practices from the FDA and submitting false statements to customs agents.
The U.S. Attorney’s Office charged AIM and Iaderosa with misbranding a medical device with intent to defraud. Under the deferred prosecution agreements, prosecution will be deferred for three years against AIM and one year against Iaderosa if they comply with specific conditions. These include paying a $1 million fine to the Department of Justice and implementing a compliance program aimed at preventing future violations of federal laws.
Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, announced the charges alongside Ronne Malham, Special Agent-in-Charge of the Chicago Field Office of the FDA's Office of Criminal Investigations. Assistant U.S. Attorney Jared Hasten is representing the government in this matter.
