SEATTLE – A former Everett man was one of two people convicted Wednesday on charges related to selling stolen medical devices, the U.S. attorney’s office said Friday.
A jury convicted Sess Merke, 38, and Tuyet Nguyen, 44, of Woodinville, of one count each of conspiracy to transport stolen medical devices in interstate commerce.
In addition, Nguyen was found guilty of two counts of interstate transportation of stolen medical devices, three counts of transporting in interstate commerce of misbranded medical devices, and one count of conspiracy to launder money.
Nguyen’s husband, Phu Nguyen, and their company, Columbia Medical Systems of Lynnwood, were also charged in the case.
However, the attorney for Phu Nguyen and the company became ill during the trial, resulting in a mistrial for those two defendants. A new trial date will be scheduled for them, the U.S. attorney’s office said.
The investigation began in September 2000 when Bothell medical equipment manufacturer Philips Medical Systems contacted the Bothell Police Department. Philips, and a company it acquired in 1998, Advance Technologies Laboratories, designs and manufactures ultrasound equipment.
An internal investigation uncovered the theft of ultrasound transducers. In May 2003, the Bothell Police Department contacted the Food and Drug Administration to assist in the investigation. In 2005, the criminal investigation arm of the Internal Revenue Service was brought in to help.
The Nguyens worked for Philips for more than 14 years, leaving the company in 1998 to form Columbia, a company that sells used medical equipment. Merke also worked at Philips for 10 years before leaving the company in September 2000.
For the last several years of his employment, Merke was an inventory manager in charge of several stockrooms of ultrasound equipment, according to evidence.
Merke filled out false inventory paperwork on many ultrasound transducers that were soon sold by Columbia with altered serial numbers, according to evidence.
The testimony at trial included that of another former Philips employee who said he was also recruited to steal ultrasound transducers and sell them to Columbia, with the understanding that the serial numbers would be changed to keep the theft from being discovered.
Columbia sold the transducers to hospitals and clinics, often for more than $8,000 each.
Tuyet Nguyen and Merke face up to five years in prison each on the conspiracy charges. Tuyet Nguyen faces maximum terms totaling more than 40 years on the other charges.
Reporter Jim Haley: 425-339-3447 or haley@heraldnet.com.
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