Two Californian men were arrested for allegedly setting up a fake company to scam investors who were attempting to buy personal protective equipment during the coronavirus pandemic.
Donald Allen, 62, and Manuel Revolorio, 37, allegedly created a fraudulent company called the International Commerce and Investment Group, which claimed to have access to millions of face masks. Prosecutors in New York claimed the pair used photographs of mask shipments to try to trick investors into sending funds.
Federal authorities said they were tipped off on the scam by an investor who became suspicious of the company after being asked to wire $4 million to pay for a shipment of masks. The investor worked with the FBI as he continued through the purchasing process, giving authorities more evidence, which led to the Monday arrests.
Masks have been in short supply since the coronavirus outbreak began in the United States. The Department of Justice vowed to crack down on price gougers and scammers shortly after the shortages started. COVID-19 hoarding and price gouging task force chief Craig Carpenito explained the case.
“The defendants in this case allegedly created an elaborate scam to defraud their victim, going as far as to wrap and label empty boxes and try to pass them off as containing actual personal protective equipment,” Carpenter said.
“The alleged behavior here is nothing short of a betrayal of fellow citizens — both those serving on the front lines and the communities who need those essential workers able to safely serve,” FBI Assistant Director William Sweeney said.
Richard Donoghue, U.S. Attorney for the Eastern District of New York, agreed, adding, “As alleged in the complaint, the defendants sought to take advantage of the urgent national need for life-saving personal protective equipment through a fraudulent scheme designed to line their own pockets.”
Both men face charges of wire fraud.
