A baby formula scam, including other items, caused a Miami man and his cronies to be in jail for over 18 years.

The Miami man, identified as Johnny Grobman, was reportedly involved in a massive commercial fraud that involved several products regulated by the U.S. Food and Drug Administration (FDA), including baby formulas and eye care products, according to Miami Herald.

Judge Roy Altman sentenced Grobman to 18 years and four months after he was convicted on charges of conspiracy to commit wire fraud, wire fraud, and money laundering. The Miami man was also convicted on charges of conspiring to obtain pre-retail medical products and smuggling goods from the United States.

Grobman's cronies, Raoul Doekhie and Sherida Nabi, were also vested with the same sentence after their conviction on the same charges as the Miami man. Dookie and Nabi were reportedly from Suriname.

During the trial, prosecutors proved that between 2013 and 2018, the trio received discounted prices for the baby formulas from the U.S. manufacturers, according to Market Watch. The group reportedly claimed that they were purchasing the products for the government of Suriname.

However, it was revealed in the trial that the trio had no such contract with the South American nation's government and was simply selling the said supply of baby formulas and other products in the U.S. at full price.

The Miami man and his cronies were reported to fake shipments to create export documentation and then immediately ship them back to the U.S. even though the products have not yet reached the land.

Prosecutors noted that the trio defrauded baby formula manufacturers out of $100 million.

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Consequences of Baby Formula Scam

Judge Altman also vested other consequences to the Miami man and his cronies aside from their imprisonment.

Judge Altman ordered the trio to forfeit over $200 million in illicit gains. Among these items include a $9 million mansion in Golden Beach, Florida. The said property is 7,700 square feet big with four bedrooms and four bathrooms.

Three units of the Aventura building were also on the list of losses, as well as a 48-foot yacht.

In April, Judge Altman also ordered that Grobman forfeit over $87 million in illicit proceeds and Doekhie and Nabi hand over $115 in fraudulently obtained profits.

"This exorbitant wealth was not earned, it was swindled," federal prosecutors argued in the court documents.

The Suriname natives will also have to give up everything in their joint account, as well as their property in Fort Lauderdale.

Baby Formula Shortage

The sentences against the Miami man and his cronies involved in the baby formula scam were vested as the United States experiences a baby formula shortage.

According to NPR, the closure of Abbott's plant in Michigan, as well as the pandemic-related supply chain, contributed to the ongoing crisis of the said product. It can be recalled that the said plant was closed after four babies who consumed several of the products became sick over bacterial infection.

Abbott CEO Robert Ford on Saturday apologized for the disruption of the supply after they issued the recalls on several of their products.

"We're sorry to every family we've let down since our voluntary recall exacerbated our nation's baby formula shortage," Ford said in an op-ed published in Washington Post.

Ford added that the recall they issued is the right thing to do, contending that they will not take risks when it comes to the health of the children.

Ford then announced that Abbott would establish $5 million in funds to help families with medical and living expenses until the baby formula shortage is alleviated.

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This article is owned by Latin Post.

Written By: Joshua Summers

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