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Three Charged with COVID-Related Price Gouging in New York

VOA News

   Twomen have been chargedin federal courtwithprice gouging for allegedly
   looking to resell1millionfacemasksthatprotect against the
   coronavirusforat least twicewhat they are worth.

   Suspects Kent Bulloch and William Young, Sr.were
   indictedTuesdayintheEastern District of New York
   inBrooklynchargedwithconspiringto violate
   theDefenseProtectionAct.PresidentDonaldTrumpissuedanexecutive
   orderMarch 18 invoking the act,makingit illegal toacquirewhat has
   beendesignated as scarce medical suppliesandhoard or resellthemat
   hugely inflatedprices.

   "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 saidTuesday. "When theattorneygeneral
   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."

   Accordingtheindictment,Bulloch and Younglooked for investors in ascheme
   tobuyrespiratormasks intended for medicalworkersand sell them for
   double or triple theprice. They allegedly tried to hide their huge
   price markup bydrawing up an agreementpledgingthat the selling price
   would notexceed10%.One of thewould-beinvestors was anundercoverFBI
   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
   DefenseProductionAct.

   Amardeep Singh ofLongIsland hasbeen accused ofhoardingtons of masks,
   surgicalgowns, and handsanitizerin awarehouseso he can sellthemin his
   store athighlyinflated prices.

   Thecomplaintalleges Singh sold face masksfor $1 apiece that
   he'dboughtfor7cents each. He also allegedlychargedcustomers$25 for
   bottles of handsanitizer, nearly 200% more than what hepaid for them.

   One of Singh's lawyerscallsthe charges "mostly fiction" and says his
   clientwould beguilty at most of a misdemeanor.

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