Scottsdale CEO charged in $16.5M COVID-19 mask scheme to defraud Texas Robert Anglen, Arizona Republic
The head of a Scottsdale supply company orchestrated a scheme to bilk the state of Texas out of millions of dollars for COVID-19 masks it couldn t deliver, federal authorities said Friday.
Dale Hipes, 39, CEO of BRI Supply, Inc., was charged with wire fraud and money laundering, according to a complaint filed by the Arizona U.S. Attorney s Office.
Hipes falsely told Texas officials he was a distributor of 3M masks and promised he could deliver 9 million within three days, the complaint alleged.
After Texas officials wired $16.65 million earlier this year, Hipes cut off communications and went on a personal spending spree, authorities said.