Executive Summary
- Pensacola-based ServisMed, LLC, pleaded guilty and was sentenced for conspiring to distribute an unregistered pesticide falsely marketed to combat COVID-19 during the 2020 pandemic.
- The company distributed the unregistered product to a local law enforcement agency and attempted to export over $250,000 worth to Jordan and Saudi Arabia, which were intercepted.
- ServisMed, LLC, was ordered to pay $13,330 in restitution, a $40,000 fine, forfeit over $250,000 in seized products, and is required to dissolve as a company.
Laws and Precedent
- ServisMed, LLC, pleaded guilty to conspiring to violate federal environmental laws, specifically the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), which mandates the registration and proper labeling of pesticide products for distribution and export, including those marketed for human use. This legal framework aims to ensure product safety and integrity, holding companies accountable for distributing unregistered and potentially harmful substances, particularly when attempting to exploit public health crises.
Pensacola-based ServisMed, LLC, pleaded guilty and was sentenced for conspiring to violate federal environmental laws by distributing an unregistered pesticide, falsely marketed to combat COVID-19, during the 2020 pandemic. The company’s actions, which included distribution to a local law enforcement agency and attempted international exports, exploited public fears for financial gain.
Details of the Conspiracy
Court documents reveal that ServisMed, LLC, located on South Palafox Street in Pensacola, operated as a distribution company for products including disinfectant pesticides. Between March and December 2020, the company conspired with others to distribute a pesticide product without the required registration from the Environmental Protection Agency (EPA), falsely claiming its efficacy against COVID-19.
This scheme involved ServisMed, LLC, distributing the unregistered product to a local law enforcement agency. Additionally, the company attempted to export over $250,000 worth of the product to the foreign countries of Jordan and Saudi Arabia, but these exports were intercepted by law enforcement.
Federal regulations under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) mandate the registration and proper labeling of pesticide products, especially those intended for human use. These requirements are crucial for protecting U.S. citizens from potential harm during use and ensuring safety during the distribution process, including for foreign export.
Official Statements and Accountability
U.S. Attorney John P. Heekin for the Northern District of Florida stated, “This company broke the law by exploiting the COVID-19 pandemic to enrich itself through the deceptive distribution of a chemical agent that had not been registered or approved for use on humans.” Heekin emphasized that the conviction and sentence hold the company accountable for its “corporate criminal conduct” and serve as a deterrent against future schemes that could endanger the community.
Assistant Special Agent in Charge Kristopher Martel of EPA’s Criminal Investigation Division added, “The defendant in this case sold unregistered pesticides in the midst of a global pandemic and sought to profit from people’s fears of contracting the coronavirus.” Martel underscored that the sentencing demonstrates that “corporations will be held criminally responsible for placing the public at risk by failing to ensure the integrity and safety of their products.”
Sentencing and Penalties
As part of its guilty plea, ServisMed, LLC, has been ordered to pay $13,330 in restitution to the local law enforcement agency that received the unregistered product. The company must also pay a $40,000 fine and forfeit the foreign export products valued at over $250,000 that were seized by authorities.
In addition to the financial penalties, ServisMed, LLC, is required to dissolve as a company, concluding its operations after this conviction.
The sentencing of ServisMed, LLC, highlights the U.S. Department of Justice’s commitment to prosecuting companies that exploit public health crises for illicit financial gain. This case serves as a stern warning against the distribution of unregistered and potentially harmful products, reinforcing the importance of federal regulations designed to protect public safety and maintain market integrity.
