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Texas men charged in multimillion-dollar fraud scheme against medical companies during pandemic

Posted at 10:00 PM, Aug 13, 2022
and last updated 2022-08-13 23:00:14-04

HOUSTON — Two Houston-area men were charged with conspiracy to commit and committing wire fraud in a scheme totaling nearly $40 million in losses to various medical companies, officials said.

Caleb Jordan McCreless of Richmond, 32, and Christopher Luke McGinnis of Spring, 39, are accused of defrauding medical companies claiming they were in possession of essential medical equipment during the COVID-19 pandemic. The pair were taken into custody on August 2.

The FBI and Harris County Constable's Office said in their investigation McCreless would claim to have access to medical-grade nitrile gloves when they were high in demand and low in supply. Companies paid a total of $39 million- one victim $13 million alone- for the gloves but never received them since McCreless did not actually have said gloves.

McGinnis would then serve as the logistics operator and delay or stall the deliveries when companies reached out concerned with their order, officials said.

Officials said the allegedly defrauded healthcare professionals expected and planned to use the promised products to combat the pandemic.

McCreless was additionally charged with five counts of wire fraud and forfeited his Fort Bend residence valued at $2 million and bought with the fraudulent money, according to officials.

Authorities said the two face up to 20 years in prison and a possible fine up to $250,000.