Maryland cancels $12.5m N95 mask order from Republican donor who suddenly closed his fundraising business and switched to selling face coverings

  • A one-time Republican donor suddenly began offering states and organizations personal protective equipment and ventilators for the coronavirus
  • Mike Gula raised tens of millions of dollars for GOP candidates in last 10 years
  • He suddenly closed his fundraising charity and began taking orders from states
  • Maryland placed $4m order for 110 ventilators and $8.5m for N95 masks 
  • After 30 days there appeared to be no movement in the order so it was cancelled
  • Many of the players in this new marketplace weren’t in the medical-supply business at the beginning of March
  • Here’s how to help people impacted by Covid-19

By James Gordon For Dailymail.com

Published: 00:32 BST, 3 May 2020 | Updated: 01:08 BST, 3 May 2020

The state of Maryland has canceled an order for $12.5 million worth of masks and ventilators from a company that was politically connected.

The order was so contentious that the state has referred the matter to the Attorney General’s Office.   

Officials with the state in charge of procuring the person protective equipment (PPE) ended up involving law enforcement officials after 30 days had passed since the order was placed with Blue Flame Medical LLC and still nothing had been delivered. 

Mike Gula, a one-time Republican fundraiser, suddenly began offering states and organizations personal protective equipment and ventilators for the coronavirus

Mike Gula, a one-time Republican fundraiser, suddenly began offering states and organizations personal protective equipment and ventilators for the coronavirus

Gula suddenly closed his fundraising charity and opened Blue Flame, taking orders from states

Gula suddenly closed his fundraising charity and opened Blue Flame, taking orders from states

Gula suddenly closed his fundraising charity and opened Blue Flame, taking orders from states

The company was launched just a few weeks ago by a former fundraiser for the Republican party, Mike Gula, who told The Wall Street Journal that the 1.5 million N95 masks were seized by government officials in China, where they were made.   

Gula claims he was then forced to look for a new supplier with which he still plans to make good on the delivery.  

The order would have seen Blue Flame purchase 1,550,000 N95 masks for $4.52 each. The state of Maryland also bought 110 ventilators for $40,000 each.

The order totaled $12,542,000 with $1 million for shipping charges.

Maryland placed a $4M order for 110 ventilators and $8.5M for N95 masks

Maryland placed a $4M order for 110 ventilators and $8.5M for N95 masks

Maryland placed a $4M order for 110 ventilators and $8.5M for N95 masks

Rep Katie Porter of California has written to the Inspector General to demand an investigation over possible fraudulent activity committed by so-called 'medical supply companies'

Rep Katie Porter of California has written to the Inspector General to demand an investigation over possible fraudulent activity committed by so-called 'medical supply companies'

Rep Katie Porter of California has written to the Inspector General to demand an investigation over possible fraudulent activity committed by so-called ‘medical supply companies’

The State of Maryland paid Gula a 50 per cent down payment of $6,271,000, according to the purchase order see by the Journal with shipment due by the end of June. 

The purchase order says the shipment was due by June 30 – but after no movement was made on the order, the state decided to cancel altogether. 

‘We have determined that since it has been one month since the order was placed with no confirmation of shipment, we are in the process of cancelling the order and have referred this matter to the Attorney General,’ a spokesman for the Maryland Department of General Services said to the Journal. 

Gula says about half of the ventilators will arrive shortly and the other half will be delivered at a later date. 

Gula had raised tens of millions of dollars for GOP candidates over the last decade, but as the coronavirus began to spread he decided to quit fundraising and try his hand at selling protective medical supplies to firefighters, police officers, hospitals and governments.    

Porter accused BlueFlame of hiking up the cost of supplies to make money during the crisis

Porter accused BlueFlame of hiking up the cost of supplies to make money during the crisis

Porter accused BlueFlame of hiking up the cost of supplies to make money during the crisis

Days after quitting fundraising he quickly launched his new website for Blue Flame Medical. 

‘We are the largest global network of COVID-19 medical suppliers,’ the company stated on its website. ‘Only the highest quality product delivered with the fastest service.’ 

But the sudden move to close his fundraising firm shocked many in Republican circles with many wondering about his intentions and how he was able to move so quickly, Politico said. 

‘Over the last 14 days I have built another business outside politics and will be focusing my full attention there,’ Mike Gura said in an email. ‘After this email, I will be unreachable. I wish you the best of luck in politics and life.’ 

But it appears Gula was struggling to complete orders in a suddenly crowded marketplace. 

He lost a deal in Henrico County, Virginia, near Richmond after attempting to charge $300,000 in shipping – which was the same cost as the order itself.  

Henrico County found another vendor to procure the supplies with far lower shipping costs. 

Another contract was signed with the state of Alabama but on this order too the deposit was refunded and the order cancelled.   

Gula’s new company were hoping to secure contracts with sporting leagues and provide hand sanitizers, disinfectant wipes and face masks to fans entering stadiums.     

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