In a significant legal development, Pen Yu, also known as Ben Yu, 51, of Gibsonton, Florida, and Gregory Muñoz, 45, of Minneola, Florida, have admitted guilt to wire fraud conspiracy.
This follows their involvement in a scheme to unlawfully obtain discounted products from Massachusetts biochemical company Sigma-Aldrich Inc., operating as MilliporeSigma, and unlawfully exporting them to China with falsified export documents.
The Justice Department has disclosed that it will not prosecute MilliporeSigma, despite the criminal actions of Muñoz, after considering the factors outlined in the National Security Division Enforcement Policy for Business Organizations.
This marks the first instance in which such a decision has been made under the policy.
Deputy Attorney General Lisa Monaco emphasized the benefits of companies voluntarily disclosing criminal wrongdoing, citing the proactive approach taken by MilliporeSigma in reporting the misconduct.
She said timely disclosure and cooperation can lead to successful investigations and prosecutions of individuals involved in criminal activity.
The investigation revealed that Yu falsely represented affiliation with a biology research lab at a Florida university to obtain discounted products from MilliporeSigma.
Muñoz, a salesperson at MilliporeSigma, aided Yu in this deception, resulting in over $4.9 million in discounts and benefits for Yu.
The products were subsequently diverted to China, where Yu repackaged and exported them using falsified export documents.
MilliporeSigma’s compliance personnel identified suspicious orders, prompting the company to disclose the misconduct to the National Security Division within a week.
The company’s exceptional cooperation facilitated the identification and prosecution of individuals involved in the scheme, including Yu and Muñoz.
