AdventHealth wins $1.5M in PPE fraud settlement

A Florida judge ruled May 12 that AdventHealth can collect $1.5 million after an asset management firm defaulted on a settlement agreement over a failed deal for personal protective agreement, according to Law360

AdventHealth claimed in a May 2020 complaint that Tomax Capital Management, a California-based firm, failed to deliver on a contract to provide the health system with 10 million N95 masks made by 3M. The parties later reached a settlement over the deal, but Tomax defaulted when it failed to make the first payment of $300,000 due April 12, Law360 reported. 

AdventHealth also alleges that Tomax, along with California attorney Michael Weiss, conspired to keep a portion of the $57.5 million for the PPE in escrow funds, the Orlando Sentinel reported. The health system alleged that the two parties refused to refund $2 million of the escrow funds, despite the fact the system was never delivered the N95 masks. 

U.S. District Judge Paul Byron ruled that Altamonte Springs, Fla.-based AdventHealth can recover $1.5 million plus $10,573 in interest. 

Representatives of AdventHealth and Tomax didn't respond to Law360's requests for comment. 

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