Watch CBS News

Coronavirus Task Force Handling Personal Protective Equipment Scam

PITTSBURGH (KDKA) - Healthcare workers and first responders are on the frontlines of fighting the coronavirus pandemic and federal investigators are behind the scenes trying to stop scammers and criminals from profiting off their fight.

The latest scam attempt for the coronavirus task force is a ploy to cash in on millions of N-95 masks.

Over the past few weeks, the need for personal protective equipment (PPE) has triggered an underground element of fraud. In one case, an innocent Pittsburgh businessman found himself caught in the middle, a broker working with a company out of Australia.

"When we approached him, he said he did not have the masks but was engaging with a broker in Australia who was using a warehouse and a company in Kuwait that had 39 million masks," explained United States Attorney Scott Brady. "What this company was trying to do was ask for a 40% upfront payment from Kaiser Permanente and that's where the story and investigation began."

Kaiser Permanente didn't pay and investigators do not believe the Pittsburgh businessman was part of the fraud but they are tracking the people responsible.

"When wire fraud is charged in the midst of a nationally declared emergency, the penalties increase," Brady said. "Wire fraud would normally have a 20-year max penalty, it increases under this provision to 30 years."

Along with the mask fraud, the task force is also working locally with Allegheny Health Network on a case of attempted fraud.

Brady would not elaborate on the details of that investigation.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.