Jesse Chung Wu, sales representative for Severn Trent Services, which is operating in Torrance, California, was charged in the U.S. District Court for the NMI.
Wu is residing at Alhambra, California, according to court documents.
Severn Trent Services, according to its website, is a supplier of water and wastewater treatment solutions.
The complaint, filed by Special Agent Haejun Park, stated that the crime happened beginning in or about July 2002 and continuing through on or about March 8, 2006.
Wu “did knowingly transmit a certification which he knew contained materially false information in furtherance of his scheme to defraud the CHC and that the transmission was performed electronically, in interstate commerce, from Alhambra, California to Saipan,” the complaint stated.
A contract for work at CHC was awarded to prime contractor AIC Marianas,Inc. which then subcontracted a portion of the work which included the furnishing of two reverse osmosis units to Saipan Ice & Water Co.
Two RO units were procured by the Saipan Ice and Water from Severn Trent Services through Wu.
The FBI said one of the RO units was to be used as the first pass in purifying water for use in CHC. Another RO unit was to be used as the second pass in purifying the water for use in the hemodialysis process.
That second RO unit, according to the complaint, was required to be listed as an approved medical device meeting certain Food and Drug Administration standards known as FDA 510(K).
The RO units supplied by Wu “did not meet such standards,” the complaint said.
Wu represented to AIC and Saipan Ice that at least one of the RO units met such standards, the complaint added.
Wu electronically transmitted on March 8, 2006 via fax from his residence in Alhambra, California, a letter in which he certified the subject RO unit met such standards, the complaint said.
Wu earned a $2,100 commission from the sale of the subject RO unit, the complaint added.
Based on Park’s investigation, Severn Trent Services management never manufactured RO units that had the FDA 510 (K) listing or certification.
Use of such RO unit would have put patients at risk and subjected CHC to liability, the complaint added.
On July 9, 2009, Wu was interviewed at his residence in Alambra, California.
Wu said that he did not prepare the letter and explained that although he stated in his letter that the RO unit supplied by STS complied with FDA 510 (K) requirements, he knew that it was not true, Park stated.
