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Wyoming Logistics Broker Ordered to Pay $9.4M Over Glove Supply Fraud

A Los Angeles County jury found Oak Sourcing & Logistics LLC and managing member Matthew John Sandvig liable for intentional misrepresentation. The jury awarded $9.4 million in damages to Ashtel Studios Inc., a California medical supply distributor, following a dispute over failed glove transactions during the pandemic period. The damages included $6.43 million in out-of-pocket expenditures and nearly $2 million in additional expenses. Sandvig allegedly told Ashtel executives in March 2021 that Oak Sourcing maintained an $800 million personal protective equipment contract and had access to substantial financing. Ashtel subsequently entered two transactions for nitrile examination gloves imported from China. The first shipment of 500,000 boxes arrived in July 2021 through the Port of Long Beach in 14 shipping containers; Oak Sourcing paid three weeks late. A second order for 1 million boxes arrived in 27 containers but Oak Sourcing failed to complete payment or take possession. Oak Sourcing's actual downstream customer proved to be another intermediary rather than an end-user hospital, court documents showed.