Three Charged with COVID-Related Price Gouging in New York

Two men have been charged in federal court with price gouging for allegedly looking to resell 1 million face masks that protect against the coronavirus for at least twice what they are worth. Suspects Kent Bulloch and William Young, Sr. were indicted Tuesday in the Eastern District of New York in Brooklyn charged with conspiring to violate the Defense Protection Act. President Donald Trump issued an executive order March 18 invoking the act, making it illegal to acquire what has been designated as scarce medical supplies and hoard or resell them at hugely inflated prices. “As alleged, the defendants conspired to turn a huge profit from the urgent need for surgical masks in New York during the pandemic,” stated U.S. Attorney Richard Donoghue said Tuesday. “When the attorney general said that those engaged in price gouging should expect a knock on the door, he meant it – and when we knock with one hand, we usually have a warrant in the other.” According the indictment, Bulloch and Young looked for investors in a scheme to buy respirator masks intended for medical workers and sell them for double or triple the price. They allegedly tried to hide their huge price markup by drawing up an agreement pledging that the selling price would not exceed 10%. One of the would-be investors was an undercover FBI agent.  “It’s hard to believe anyone could take advantage of a situation like this, but this case clearly proves that theory wrong,” FBI Assistant Director-in-Charge William F. Sweeney said. “The FBI is proud to work with all of our partners as we confront the threats posed by those who are looking to game the system in this current environment.”   Another New Yorker is also facing federal charges of violating the Defense Production Act. Amardeep Singh of Long Island has been accused of hoarding tons of masks, surgical gowns, and hand sanitizer in a warehouse so he can sell them in his store at highly inflated prices. The complaint alleges Singh sold face masks for $1 apiece that he’d bought for 7 cents each. He also allegedly charged customers $25 for bottles of hand sanitizer, nearly 200% more than what he paid for them. One of Singh’s lawyers calls the charges “mostly fiction” and says his client would be guilty at most of a misdemeanor.  
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