Biochemicals Heist: Ringleader and Insider Plead Guilty to $Million Fraud Scheme

Biochemicals Heist: Ringleader and Insider Plead Guilty to $Million Fraud Scheme

WASHINGTON – In a brazen scheme to defraud a Massachusetts biochemical company and divert products to China using falsified export documents, Pen Yu, 51, of Gibsonton, Florida, and Gregory Muñoz, 45, of Minneola, Florida, have each pleaded guilty to one count of wire fraud conspiracy.

According to court documents, the duo’s scheme involved fraudulently procuring deeply discounted products from Sigma-Aldrich Inc., doing business as MilliporeSigma, and exporting them to China using falsified export documents. The scheme, which began in at least July 2016 and continued through at least May 2020, resulted in the diversion of millions of dollars worth of biochemicals.

MilliporeSigma, the biochemical company at the center of the scheme, has been cleared of any wrongdoing after voluntarily self-disclosing the potential criminal activity and cooperating fully with the Justice Department. This marks the first time the National Security Division has declined the prosecution of a company under its voluntary self-disclosure program.

Deputy Attorney General Lisa Monaco praised MilliporeSigma for its prompt disclosure and cooperation, stating, “When a business uncovers criminal wrongdoing within its ranks, the company is far better off reporting the violation than waiting for the Justice Department to discover it.”

Assistant Attorney General Matthew G. Olsen added, “MilliporeSigma’s prompt disclosures led to the uncovering of this multimillion-dollar criminal enterprise, and enabled law enforcement to disrupt the scheme and stop further illegal exports to China.”

U.S. Attorney Roger B. Handberg for the Middle District of Florida noted, “When company and university insiders abuse the trust that their institutions place in them, they will be held accountable. Here, Millipore Sigma’s prompt disclosures led to the uncovering of this scheme.”

The Justice Department’s decision to decline prosecution of MilliporeSigma reflects the company’s exceptional cooperation and timely self-disclosure. This move sends a strong message to businesses that cooperation and transparency can lead to leniency in cases of corporate wrongdoing.