Man charged in PPE-selling scheme that left Bay Area victims without masks amid COVID-19
SAN FRANCISCO (KTVU) - A Michigan man was indicted on wife fraud charges for allegedly operating an e-commerce website to scam customers into purchasing N95 face maks that they never received, according to a criminal complaint from the Department of Justice.
Rodney L. Stevenson II, of Muskegon, Michigan, ran EM General, a limited liability company created in September 2019, officials said. EM General operated a website that purported to sell an available inventory of “Anti-Viral N95” respirator masks.
The federal complaint alleges that EM General, through its website, falsely claimed to have N95 respirator masks “in stock” and available for sale and shipment during the shortage caused by the COVID-19 pandemic.
"Hospitals, healthcare providers and everyday people are understandably anxious to obtain N95 masks, N99 filters and other PPE,” said U.S. Attorney Anderson. “The criminal element is always ready to prey on fear and uncertainty, and it is all too easy to lie over the internet."
Authorities said customers bought masks from the website, sometimes paying more than $40 for the masks through EM General.
Federal investigators said Stevenson tried to make EM General appear to be a legitimate company. For example, Stevenson invented a fictional Chief Executive Officer, “Mike Thomas,” from whom fraudulent emails were sent, as well as several other fake officers or employees of the company. He also used stock photographs from the internet to create a page depicting this team of fake professional management staff.
Once customers placed their order, the defendant then offered additional masks to those customers at discounted prices.
According to charging documents, three of the four victims are Bay Area residents, including one hospital employee.
Also described in the complaint are follow-up emails from EM General to customers inquiring about their orders in which Steven made false excuses about supply and shipping issues resulting in the delays, officials said.
Most of the customers in the complaint never received the promised products at all despite multiple representations that the masks had been shipped.
One victim paid over $400 on March 2 for N95 masks through the EM General and after raising several complaints, on March 27 received cheaply made fabric masks. The masks, delivered in a white envelope with no return address, did not comply with the N95 standard that EM General claimed to sell, investigators said.
Stevenson was arrested at his home Michigan and later released on supervised bond.
If convicted, the defendant faces a maximum sentence of 30 years in prison, 5 years of probation, and a fine of $1,000,000.