A New York business owner accused of hoarding and price-gouging medical supplies has been charged under the Defense Production Act, becoming the first-ever case of such prosecution, CNN reported.
45-year-old Amardeep Singh allegedly hoarded several tons of essential personal protective equipment, which he then in turn sold at his store for huge markups.
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Court documents detail Singh’s stockpiling scheme which began back in the middle of March.
As the criminal complaint states, prior to the ongoing coronavirus pandemic, Singh’s store, “NY Tent Sale” in Plainview, New York, sold mostly clothing and shoes to its customers.
However, that all changed once the crisis began.
Between March 15 and April 8, Singh began collecting and selling essential supplies that were quickly becoming scarce throughout the country.
Federal prosecutors in the Eastern District of New York accuse him of filling his Long Island warehouse and store with N95 respirators, face masks, surgical masks, face shields, gloves, coveralls, medical gowns, and clinical grade disinfectant products
After collecting a sufficient supply, Singh reportedly devoted an entire section of his store to “Covid-19 Essentials,” where he profited off the current shortage of these products and sold them at inflated prices.
On March 18, President Trump signed an executive order invoking the Defense Production Act, which makes it illegal to acquire essential products with intent on hoarding and/or reselling them at inflated prices.
“The criminal complaint describes a defendant who allegedly saw the devastating COVID-19 pandemic as an opportunity to make illegal profits on needed personal protective equipment,” Craig Carpenito, who leads the Justice Department’s COVID-19 price gouging task force, said of Singh’s scheme in a press release .
“The Department of Justice and its partners will intervene whenever profiteers and scammers break the law by capitalizing on the public’s fear to enrich themselves.”
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When Singh’s business was raided on April 14, federal agents confiscated an incredible number of essential supplies that had been hoarded.
Among those collected were 21,267 KN95 respirator face masks, 75,000 surgical masks, and 176,104 disposable latex gloves.
The masks, which usually retail for 7 cents each, were being sold at Singh’s store for $1, making for a markup of about 1,328%.
In total, he stands accused of receiving shipments of more than 1.6 tons of face masks, 1.8 tons of hand sanitizer, and multiple shipments of surgical gowns weighing over 2.2 tons.
“Singh’s amassing of critical personal protective equipment during a public health crisis and reselling at huge markups places him squarely in the cross-hairs of law enforcement armed with the Defense Production Act,” United States Attorney Richard Donoghue said .
Brad Gerstman, Singh’s lawyer, says his client claims he is innocent.
“Given the set of circumstances we’re all living in with coronavirus, everyone trying to still make a living, for the federal government to start targeting private business and people seems unconscionable to me,” he told CNN .
Gerstman also said Singh was trying to support his wife and three children during this time of financial hardship.
Singh reportedly sold the overpriced items to vulnerable organizations in need of such supplies.
As the complaint claims, these include the Association to Benefit Children, the New York Foundation for Senior Citizens, and and Rewarding Environments for Adult Living.
If convicted, Singh could face up to a year in prison. He’s expected to turn himself into authorities sometime next week.
h/t: CNN , United States District Court, Eastern District Of New York
