The California-based lawyer arrested last week and charged with conspiracy to violate the Defense Production Act pleaded not guilty before a magistrate judge in the Eastern District of New York Monday.

Kent Bulloch, 56, of Santa Rosa, California, is accused of attempting to inflate the price of masks needed amid the coronavirus pandemic, according to a complaint filed against him and 64-year-old William Young Sr. of Arizona on April 27.

Bulloch and Young participated in their initial appearances before U.S. Magistrate Judge Vera Scanlon Monday by conference call. Scanlon approved the release of both men on bond.

Young, who is described as a businessman in court documents, did not enter a plea.

Bulloch's role as an attorney was part of the alleged price-gouging scheme, according to the complaint. He is accused of agreeing to create fake documents to hide the price gouging and acting as "paymaster" to hold money in a trust account.

With the falsified documents, Bulloch tried to convince an undercover FBI agent that he wasn't earning more than 10% on the resale of masks, according to the complaint.

Prosecutors in the Eastern District also charged two Southern California-based businessmen with conspiracy to commit wire fraud in connection with the scheme.

Bulloch's lawyer, Jeremy Gutman, a Manhattan-based criminal defense attorney, said his client has an "unstained record."

"He's pleaded not guilty to the misdemeanor charge, and he intends to vigorously defend against the charge," Gutman said. "He's confident he will be fully vindicated."

President Donald Trump invoked the Defense Production Act of 1950 in an executive order March 18, ordering that scarce and critical items cannot be hoarded or resold above the "prevailing market price." Those items include ventilators and personal protective equipment such as masks, according to Trump's order.

Attorney General William Barr created the COVID-19 Hoarding and Price Gouging Task Force to handle enforcement of the Defense Production Act and related offenses. U.S. Attorney Craig Carpenito of the District of New Jersey is leading the task force, and U.S. attorney's offices in several states were involved with the arrests of Bulloch and Young, according to a news release.

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