n95 respirators
(Photo: REUTERS/Nicholas Pfosi/File Photo)



The Federal Bureau of Investigation recently discovered an international COVID-19 fraud scheme. The agency investigated a lucrative deal after more than 39 million masks promised to California did not arrive. 

A powerful California labor union representing healthcare workers got entangled with an elaborate scam after claiming they have millions of masks for front liners in their stockpile. 

Investigators uncovered the scheme while they were planning to intercept the shipment for the Federal Emergency Management Agency, or FEMA, under the recently imposed Defense Production Act. 

Federal officials have been quietly scouring the country for much-needed medical supplies amid the coronavirus pandemic. However, they were shocked to find no warehouse and no masks to seize in this case. 



Securing the deal

Service employees International Union-United Healthcare Workers, also known as SEIU-UHW, revealed it identified a potential distributor overseas claiming they had 39 million N95 respirators ready to ship on March 26. 

The labor union said they closed the deal after 48 hours, calling leads and manufacturers in a bid to provide US medical professionals with personal protective equipment. They also discovered one company claiming it can produce 20 million masks in a week, and another supplier who offered millions of face shields. 

An unnamed businessman was reportedly helping SEIU-UHW contact people in Australia and in the Middle East to secure the deal. 

US Attorney Scott Brady, who works at the Western District of Pennsylvania, said he believes they stopped a potentially devastating fraud. He warned individuals and organizations to take caution as strained resources may lead to more COVID-19 schemes. 

Several major media outlets reported the promise of 39 million masks. News outlets listed numerous hospitals and government agencies as buyers. Kaiser Permanente planned on buying 6 million masks. 

The deal fell through after the seller "failed to provide reliable information" where buyers could inspect the products. At one point, the Pittsburg businessman claimed there were already 2 million masks at a warehouse in Georgia. He also said an undisclosed certification company inspected all masks. 

Fraud Schemes

Experts in the global supply chain said the COVID-19 outbreak led to dubious brokers and suppliers flooding the market with suspicious offers in hopes of finding an unsuspecting buyer. 

The recent scams have created an atmosphere of confusion and distrust among medical care workers and facilities. 

US authorities said the arrangement seemed unlikely to be true after discovering the seller was advertising masks from known manufacturer 3M. The company, however, said they had only manufactured 20 million masks the previous year. 

Steve Trossman, the spokesman for SEIU-UHW, said that the fraudulent deal involved no exchange of money. He also noted that the labor union was only trying to find medical equipment for its members and had no financial interest in any of its transactions. 

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