New York man first charged under Defense Production Act for alleged protective equipment scam

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A New York man has become the first person charged with defrauding personal protective equipment prices under the Defense Production Act (DPA) since the start of the coronavirus epidemic in the United States.

The Justice Department announced Friday that it had filed a criminal complaint against Amardeep Singh, accusing him of violating the 1950 War Law by hoarding Personal Protective Equipment (PPE) in a warehouse in Brentwood, in New York State, and price gouging at their Plainview retail store. , NY

Singh faces up to a year in prison if convicted.

“As charged in the complaint, the fact that Singh amassed essential personal protective equipment during a public health crisis and sold at huge margins puts him squarely in the crosshairs of the forces of the defense order of the Defense Production Act, “said US Attorney Richard Donoghue. “This office works tirelessly in coordination with the COVID-19 working group on hoarding and pricing to prevent a pandemic of greed among profiteers.”

Federal prosecutors said Singh, who runs a sneaker and clothing retail store, has started to accumulate several different types of PPE there and at a nearby warehouse. He also allegedly had a section of his store for “COVID-19 Essentials” which sold N95 respirators, face shields, gloves and more at inflated prices.

He is said to have received 40 shipments to his store and warehouse of goods designated by the federal government as rare. A search warrant was executed on April 14, and authorities seized more than 100,000 face masks, 10,000 surgical gowns, nearly 2,500 full isolation suits and more than 500,000 pairs of disposable gloves.

Court documents have shown that Singh sold face shields for $ 9.99 after purchasing them for $ 3.10. Disposable masks were marked at $ 1 from 7 cents and glove boxes were priced at $ 7.99 after being obtained for $ 2.50.

“The Coronavirus has created difficult times for all Americans, especially those living in the New York metropolitan area,” said Philip Bartlett, inspector in charge of the New York division of the United States Postal Inspection Service. United. “During a crisis of this magnitude, we must unite as a country to fight this common enemy.”

“Unfortunately, Mr. Singh would have chosen to take advantage of this opportunity to earn money by hoarding and abusive prices on PPE. The conduct complained of in the complaint is reprehensible and contrary to our most basic American values, “he added.

President TrumpDonald John TrumpBiden vows to recognize Armenian genocide if President-elect Nadler urges Barr on Trump to use emergency powers during pandemic China sent team to North Korea to advise on Kim Jong Un: PLUS report signed a decree last month invoking the Defense Production Act to force certain industries to manufacture essential tools and PPE. The ordinance made it illegal to obtain medical tools designated by the Secretary of Health and Social Services as rare in order to hoard them or sell them at excessive prices.



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