A promotional products distributor from Utah is set to stand trial in federal court on charges of wire fraud in connection with an alleged scheme tied to personal protective equipment (PPE) during the height of the coronavirus pandemic.

John Anthony Taylor, 46, of Park City, UT, claimed to have access to millions of N95 respirator masks from 3M when he did not have the masks or such access, according to the Federal Bureau of Investigation.

Not an authorized 3M dealer, Taylor made false representations, including emailing a fake purchase order from 3M, and attempting to execute a bogus mask sale with an undercover FBI agent, authorities allege.

“Rooting out pandemic-related fraud is one of the highest priorities for the Department of Justice and my office,” said U.S. Attorney John W. Huber. “Experienced investigators and prosecutors are dedicated to holding accountable those who would use this challenging environment to pad their own pockets.”

John Anthony Taylor is accused of wire fraud.

Federal authorities identified Taylor as the owner of Positive Marketing, LLC and Wasatch Promotional Products. Positive Marketing is not an ASI-listed distributor, records indicate. Wasatch was ASI-listed, but was terminated prior to any of the allegations, a records search shows. Taylor’s LinkedIn profile also identifies him as the owner of BindersNow.com. That company is not ASI-listed, according to a review of ASI records.

During an arraignment on Tuesday, Sept. 15, Taylor pleaded not guilty to the charge of wire fraud. He is free on supervised release. A three-day trial is set for Nov. 23, 2020, before U.S. District Judge David Sam. If convicted, the potential maximum penalty for the charge in the indictment is 20 years in federal prison.

Contacted by Counselor, Taylor affirmed his not guilty plea, saying that he had done nothing illegal. “It’s a complete misunderstanding,” he said. “There was no fraud intended.”

According to court documents, the FBI in Houston, TX, was contacted by an attorney representing a medical company concerned about an entity purporting to have access to 1 billion 3M N95 masks. At the time, publicly available information indicated the global production numbers of N95 masks were well below a billion a month.

The FBI opened an investigation that ultimately resulted in an introduction to Taylor in Utah. According to charging documents, an undercover agent made contact with Taylor and asked for documents proving Taylor actually had the masks. Authorities maintain that Taylor then sent an email with a fake purchase order from 3M, which is the Minnesota-headquartered parent company of Top 40 promotional products supplier 3M/Promotional Markets (asi/91240). The FBI says 3M has confirmed it has no relationship with Taylor.

To advance his alleged scheme, Taylor made other false representations, investigators assert. Those allegations include:

• Taylor said he was a representative for the 3M company and was authorized to sell its 1860 N95 masks.
• Because of the COVID-19 pandemic, he had recently started to focus on selling masks through his business, Wasatch Promotional Products.
• He had contracts for “a million, 30 million, 60 million [masks] for a couple different state government(s).”
• He had completed several shipments of 3M 8210 masks.
• He could broker a deal for 3 million 1860 N95 masks for $5.49 per mask.
• He would receive “lot numbers” and show “proof of life” to prove that the order was legitimate.
• He had successfully brokered deals with 3M previously.

3M has been cracking down on fraud in connection with its N95 masks, which have been in high demand during the COVID-19 pandemic. For instance, the corporation says it recently stopped a $14 billion N95 fraud.