Brooklyn Prosecutors Say 2 Men Demanded $4 Million for Masks in Coronavirus-Related Fraud Scheme
Investigators were tipped off about the scheme after an associate of the two men contacted a potential investor in the Eastern District in late March, according to the complaint.
April 27, 2020 at 06:26 PM
3 minute read
Two Southern California-based businessmen have been charged with conspiracy to commit wire fraud in connection with the sale of personal protective equipment needed amid a global pandemic, according to a complaint unsealed Monday in the Eastern District of New York.
Donald Allen and Manuel Revolorio falsely claimed they had access to millions of masks, including the Chinese-approved variant of the N95, known as the KN95, according to the complaint. They claimed to have been involved in the personal protective equipment supply business since 2014, even though their company was only incorporated in 2017, investigators found.
"The defendants also falsely claimed that [their company] had contracts and agreements in place to resell millions of masks, and attempted to pressure a potential purchaser to wire more than $4 million to secure those masks," according to a news release from the U.S. Attorney's Office for the Eastern District of New York.
Investigators were tipped off about the scheme after an associate of the two men contacted a potential investor in the Eastern District in late March, according to the complaint. The investor, who was previously convicted of securities fraud and cooperated with the government, reported the incident.
After a back-and-forth involving Allen and Revolorio, unnamed co-conspirators and a pair of investors cooperating with the government, an undercover agent met Allen and Revolorio at a California house they described as their office April 14, according to the complaint.
The agent saw "a large number of cardboard boxes in plain view, some of which were open and contained face masks," and Revolorio offered to sell 40,000 KN95 masks that day. Revolorio then took the agent to two warehouses and showed him more boxes, telling him they contained millions of surgical masks.
Allen then emailed a series of invoices asking for more than $4 million in payment to the offices of one unnamed co-conspirator, an attorney, according to the complaint.
During a search just a few days later, investigators learned that most of the boxes at the house were empty, according to the complaint. At the two warehouses, the agents found masks but other people came forward as the masks' owners, denying that they worked with Allen and Revolorio.
The men were arrested Monday in California. Allen has a prior conviction for mail fraud from 2002, according to the complaint.
Attorneys representing the men in California did not immediately respond to requests for comment. It was not immediately clear when or how the men will be moved to New York.
READ MORE:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrump Picks Personal Criminal Defense Lawyers for Solicitor General, Deputy Attorney General
SEC Under Trump 2.0 Likely to Take More 'Measured' Enforcement Approach, Observers Say
Decision of the Day: Attorney in Social Security Case Awarded Fees, But Must Pay Client Refund Under Equal Access to Justice Act
Trending Stories
- 1'If You Have the Offering, India Is the Shining Star': International Firms on Bolstering Their India Desks
- 2Meet Christopher Benjamin: New Miami-Dade Judge
- 3Are Federal and State Superfund Laws the Best Way to Address Microplastics?
- 4Attorney Can't Invest in Firm With Non-Lawyer Owner?
- 5Former Perkins Coie Partner Moves to Stradley Ronon in Chicago
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250