Advertisement

Updated May 29th, 2020 at 11:56 IST

Man charged for $317M sale of virus masks that didn't exist

A Georgia man was charged in federal court Thursday with trying to swindle a foreign government out of $317 million by promising to sell it face masks to protect against the coronavirus with a huge shipment that never existed.

Man charged for $317M sale of virus masks that didn't exist
| Image:self
Advertisement

A Georgia man was charged in federal court Thursday with trying to swindle a foreign government out of $317 million by promising to sell it face masks to protect against the coronavirus with a huge shipment that never existed.

Paul Penn faces up to 20 years in federal prison if convicted of criminal attempt and conspiracy, according to documents filed by prosecutors in U.S. District Court in Savannah.

Prosecutors said Penn and at least two partners negotiated a deal between March and April to sell 50 million N95 respirator masks to a foreign government. Prosecutors did not identity the government involved.

The sellers never had the masks, prosecutors said in a court filing, yet they persuaded the foreign government to wire $317 million to a bank account. Prosecutors said the sales price was five times the market value for the masks.

The U.S. Secret Service stopped the transaction before it could be completed, according to a news release from the office of U.S. Attorney Bobby Christine of the Southern District of Georgia.

“Using a worldwide pandemic as an opportunity to take advantage of those searching for badly needed personal protective equipment is reprehensible," Christine said in a statement. He pledged that federal authorities "will aggressively seek out any fraudsters who exploit this crisis as a way to make a quick buck.”

Court records did not list an attorney for Penn. Prosecutors did not identify the two people they said were Penn's partners in the scheme.

Prosecutors said Penn helped negotiate the sale through his company, Spectrum Global Holdings LLC. Georgia incorporation records show Penn formed the company in 2018 in the Atlanta suburb of Norcross.

(Representative Image)

Advertisement

Published May 29th, 2020 at 11:56 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement

Trending Quicks

Sunita Kejriwal
a few seconds ago
Mastering NDA Preparation: The Importance of Effective Revision Strategies and Organized Study Materials
10 minutes ago
Gautam Gambhir and Virat Kohli
11 minutes ago
Congress Press Conference
12 minutes ago
Virat Kohli's text to RCB owners got WPL team to unbox event
14 minutes ago
Pakistan and the IMF agree on a $1.1 billion disbursement for the debt-ridden economy.
14 minutes ago
Patna Shuklla poster
16 minutes ago
Millet
18 minutes ago
Lok Sabha Elections 2024 LIVE
25 minutes ago
IndiGo direct flight between Mumbai and Ayodhya
28 minutes ago
former dsp shailendra singh revealed criminal activity of Mukhtar Ansari
30 minutes ago
Advertisement
Advertisement
Advertisement
Whatsapp logo