Investigation Follows Failure to Provide Promised PPE to Multiple States
The Washington Post reports today that the Department of Justice “has opened a criminal investigation into Blue Flame Medical” – a PPE firm started by former Republican fundraiser Mike Gula – after the firm failed to deliver medical masks and other equipment to multiple states.
Both the York Dispatch and Pennsylvania Capital-Star have reported on Perry’s connection to Gula, who “set the Republican operative world ablaze” after leaving his fundraising firm to “capitalize on the coronavirus response,” noting the campaign paid Gula roughly $175,000 since 2014, with more than $11,000 in 2020 alone.
So far Perry has remained silent on the allegations surrounding his former consultant and has yet to denounce them. He also has yet to return the money Gula raised for him.
“The Justice Department has opened a criminal investigation into Blue Flame Medical, a firm created by two well-connected Republican operatives who started selling covid-19 supplies this spring as the virus spread across the country.
Prosecutors are focused on at least two contracts that the firm signed for medical masks and other equipment with Maryland and California, according to two people familiar with the matter who spoke on the condition of anonymity because of the sensitive nature of the matter. Both states ultimately canceled those contracts.
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California had separately hired the firm to provide 100 million face masks, according to two people familiar with the transaction. That contract, which was first reported Wednesday by the California news website CalMatters, was then abruptly canceled, and the state scrambled to get its $457 million deposit back.”
Washington Post: Maryland cancels $12.5 million PPE contract with firm started by GOP operatives
“The state of Maryland on Saturday terminated a $12.5 million contract for personal protective equipment with a firm started this spring by two well-connected Republican operatives.
State officials said the company, Blue Flame Medical, failed to deliver masks and ventilators as promised and that the matter has been referred to Maryland Attorney General Brian E. Frosh (D) for review.
Blue Flame received a down payment of nearly $6.3 million from Maryland in early April — after promising to provide within weeks desperately needed PPE for front-line medical personnel dealing with the novel coronavirus.
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The price Blue Flame was charging at the time for N95 masks — $4.52 each — was much higher than the list price provided by manufacturers.”
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