A Monsey trading company that saw an opportunity to pay $3 million for medical gloves worth more than $6 million ended up with neither gloves nor money.
BRM Trades LLC is trying to get back both from a shipping company, All-Ways Forwarding Intl., according to an Aug. 24 lawsuit filed in U.S. District Court, White Plains.
“All-Ways did a bait and switch,” the complaint states, with “intentional misrepresentations and deceit … to deprive BRM of its property.”
All-Ways, of Elizabeth, New Jersey, did not immediately provide a response to the allegations.
Originally, DRE Health Corp. of Overland Park, Kansas, hired All-Ways to ship 68 containers of medical gloves from China to the U.S. But when the shipment arrived, according to the complaint, DRE Health had run into financial difficulties.
On July 30, BRM Trades made a deal with DRE Health to buy the gloves, but All-Ways and a Chinese company that made the gloves were not willing to release the goods until they were paid.
BRM said it agreed to pay more than $2 million to the manufacturer and $1 million to DRE Health that would be used to pay off invoices to All-Ways.
The Chinese manufacturer issued a release when it was paid, according to the complaint. But All-Ways allegedly accepted only a portion of the $1 million from DRE and decided instead to sell the gloves to another company.
BRM claims it has a valid title to the gloves but All-Ways has refused to release the goods.
The Monsey company accused the shipper of breach of contract and fraud. It is demanding immediate turnover of the gloves, the $3 million it paid for the shipment and lost profits of at least $3 million.
BRM Trades is represented by Washington, D.C., attorney Brendan Collins.
