A Pensacola-based company has been ordered to dissolve and pay more than $300,000 in fines and penalties after pleading guilty to distributing an unregistered pesticide falsely marketed as capable of fighting COVID-19, federal authorities announced August 18.

ServisMed LLC, a distribution company located on South Palafox Street in Pensacola, admitted to engaging in a conspiracy to violate the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), according to John P. Heekin, United States attorney for the Northern District of Florida.

“This company broke the law by exploiting the COVID-19 pandemic to enrich itself through the deceptive distribution of a chemical agent that had not been registered or approved for use on humans,” Heekin said in a statement. “This conviction and sentence holds this company accountable for its corporate criminal conduct, and should serve as a deterrent against future criminal schemes that endanger our community.”

Court documents indicate that ServisMed, which was licensed to market and sell disinfectant pesticides, engaged in deceptive practices during the height of the COVID-19 pandemic. Between March and December 2020, the company conspired with others to distribute a pesticide product under the false pretense that it could combat the coronavirus.

The unregistered pesticide was distributed to a local law enforcement agency in Pensacola, and the company also attempted to export the product to foreign countries, including Jordan and Saudi Arabia. Authorities stopped the foreign exports, which were valued at more than $250,000.

The federal government requires that all pesticides intended for use on humans be registered with the Environmental Protection Agency (EPA). Registration ensures that products meet standards for safety, efficacy, and proper labeling. Without such oversight, citizens face potential health risks from untested chemical agents, and unregulated products pose risks during transport and distribution both domestically and internationally.

According to the US Attorney’s Office, proper registration and labeling protect not only the public but also the integrity of the supply chain, particularly when products are exported to foreign markets.

Under the terms of the guilty plea, ServisMed will pay restitution of $13,330 to the local law enforcement agency that received the unregistered pesticide. The company also faces a $40,000 fine, and authorities will seize foreign export products valued at more than $250,000. In addition to these financial penalties, ServisMed will be dissolved as a corporate entity.

“The defendant in this case sold unregistered pesticides in the midst of a global pandemic and sought to profit from people’s fears of contracting the coronavirus,” said Kristopher Martel, assistant special agent in charge of the EPA’s Criminal Investigation Division. “The sentencing demonstrates that corporations will be held criminally responsible for placing the public at risk by failing to ensure the integrity and safety of their products.”

The investigation into ServisMed’s activities was conducted jointly by multiple federal agencies, including the Environmental Protection Agency – Criminal Investigation Division, the Department of Commerce – Bureau of Industry and Security Office of Export Enforcement, and the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys David L. Goldberg and Justin M. Keen.

The case highlights a broader concern about corporate misconduct during the COVID-19 pandemic. As public fear of infection surged, several companies sought to profit from the crisis by marketing products with unverified claims of preventing or curing COVID-19. Federal authorities have increasingly scrutinized such activities, emphasizing that misleading claims about health-related products can pose serious public health risks.

Pesticides, in particular, are subject to strict regulatory oversight due to the potential dangers they pose when misused. When applied to humans without proper testing and registration, such products can cause serious injury, chemical burns, respiratory problems, and other health complications. Experts note that the sale of unregistered pesticides under false pretenses not only violates federal law but undermines public trust in chemical safety regulations.

The ServisMed case also underscores the importance of monitoring the export of potentially hazardous materials. Unauthorized export of unregistered chemicals could have exposed foreign recipients to unknown health risks and potentially violated international trade regulations. By seizing the attempted exports, federal authorities prevented a wider spread of these dangerous products.

“This prosecution reflects the commitment of federal law enforcement to hold companies accountable for criminal misconduct, especially during a public health crisis,” said Heekin. “Exploiting fear for financial gain is unacceptable, and corporate entities must be reminded that they cannot circumvent federal laws with impunity.”

Legal analysts say that cases like ServisMed’s serve as a warning to other companies considering the sale of unapproved products. The financial and reputational consequences can be severe, particularly when violations occur in high-profile situations such as a global pandemic.

The sentencing also brings attention to the role of regulatory oversight and inter-agency cooperation. The successful investigation involved coordination among the EPA, FBI, and Department of Commerce, demonstrating the federal government’s ability to enforce compliance across multiple jurisdictions and agencies.

In recent years, the federal government has increased its enforcement efforts against companies making fraudulent health claims. The COVID-19 pandemic created a fertile environment for scams, and authorities have emphasized that deception in health and safety products will be met with serious consequences, including criminal charges, fines, and company dissolution.

For local communities, the ServisMed case provides reassurance that regulatory and law enforcement agencies are actively protecting public health. Authorities stressed that vigilance and cooperation between agencies are key to preventing similar schemes in the future, particularly those exploiting emergencies like the COVID-19 pandemic.

With the company now dissolved and the penalties imposed, ServisMed LLC will no longer operate, marking the end of its fraudulent activity. Federal officials say the case is part of an ongoing effort to safeguard citizens from dangerous and unapproved chemical products, ensure compliance with federal law, and uphold the integrity of public safety standards.

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