Two Arrested for $8.2 Million PPE Fraud Against Canadian Healthcare Provider

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By Staff Writer | iSkyCreations - News & Media (ISC News & Media)
Published May 2nd, 2024

CENTRAL ISLIP, NY — Jonathan Cannon, 58, of Miller Place, New York, and Julie Dotton, 51, of Orchard Park, New York, were arrested today on charges of wire fraud for allegedly defrauding a Canadian company out of $8.2 million during the early stages of the COVID-19 pandemic. The charges relate to a scheme where the defendants promised, but failed to deliver, personal protective equipment (PPE) essential for combating the virus.

United States Attorney for the Eastern District of New York, Breon Peace, and James Smith, FBI Assistant Director-in-Charge of the New York Field Office, announced the arrests following the unsealing of the criminal complaint in the federal courthouse in Central Islip.

According to authorities, Cannon and Dotton exploited the urgent need for PPE by a Canadian healthcare company that was designated as an official provider for two provinces in Canada. Court filings allege that under the guise of a company controlled by Dotton, the duo entered into a contract to supply about 12 million face masks for a total of $8.2 million. The Canadian company wired the funds to what was believed to be a third-party escrow account, which was, in fact, controlled by the defendants. Instead of procuring the masks, the funds were allegedly transferred to personal accounts and used for unrelated expenses.

The lack of delivery prompted repeated requests from the Canadian company for either the promised goods or a refund, to which Cannon and Dotton reportedly responded with a series of delays and excuses.

“As alleged in the complaint, the defendants sought to take advantage of a provider’s need for life-saving personal protective equipment through a fraudulent scheme that was designed in reality to line their own pockets,” stated United States Attorney Peace. “This Office will continue to work diligently to ensure that fraudsters who sought to capitalize on the worldwide pandemic will be brought to justice. There is no free pass for Covid-19 fraud.”

“Jonathan Cannon and Julie Dotton allegedly defrauded a healthcare company of approximately $8.2 million under the false pretense of selling personal protective equipment. The defendants’ alleged failure to provide these critical garments, especially during the onset of a global pandemic, selfishly deprived potential consumers and patients in need. Today’s arrests highlights the FBI’s steadfast pursuit of those who jeopardize the health of others for personal financial gain,” stated FBI Assistant Director-in-Charge Smith.

The prosecution is being managed by the Business and Securities Fraud Section of the Eastern District of New York, with Assistant United States Attorneys Drew G. Rolle, John O. Enright, and Adam Toporovsky leading the efforts.

As the legal proceedings advance, it is important to note that all charges mentioned are merely allegations, and the defendants are presumed innocent unless proven guilty. Cannon was released on a $500,000 bond, while Dotton awaits her initial court appearance in the Western District of New York.

For Immediate Release: U.S. Attorney's Office, Eastern District of New York

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