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Texas men charged with trying to sell 50 million bogus masks to Australian state
Source: Reuters
U.S. Legal News
November 24, 2020 2:25 PM Updated 15 hours ago
Texas men charged with trying to sell 50 million bogus masks to Australian state
(Reuters) - Two Houston-area men have been criminally charged with trying to fraudulently sell 50 million N95 respirator masks they did not have to the government of New South Wales in Australia at an inflated $317.6 million price, U.S. prosecutors said on Tuesday.
Paschal Eleanya, 46, and Arael Doolittle, 55, were charged in a three-count indictment with wire fraud and conspiracy for trying to sell the 3M-branded masks at five times the list price to an unnamed foreign government.
Prosecutors said Eleanya and Doolittle expected to collect as much as $275 million, with the remaining money going to their “broker” and the government’s own representatives.
The U.S. Secret Service broke up the transaction before it could be completed, according to the Nov. 19 indictment, which includes text messages from both defendants.
New South Wales was identified as the foreign government at a court hearing on Tuesday, according to the office of U.S. Attorney Ryan Patrick.
-snip-
November 24, 2020 2:25 PM Updated 15 hours ago
Texas men charged with trying to sell 50 million bogus masks to Australian state
(Reuters) - Two Houston-area men have been criminally charged with trying to fraudulently sell 50 million N95 respirator masks they did not have to the government of New South Wales in Australia at an inflated $317.6 million price, U.S. prosecutors said on Tuesday.
Paschal Eleanya, 46, and Arael Doolittle, 55, were charged in a three-count indictment with wire fraud and conspiracy for trying to sell the 3M-branded masks at five times the list price to an unnamed foreign government.
Prosecutors said Eleanya and Doolittle expected to collect as much as $275 million, with the remaining money going to their “broker” and the government’s own representatives.
The U.S. Secret Service broke up the transaction before it could be completed, according to the Nov. 19 indictment, which includes text messages from both defendants.
New South Wales was identified as the foreign government at a court hearing on Tuesday, according to the office of U.S. Attorney Ryan Patrick.
-snip-
Read more: https://www.reuters.com/article/health-coronavirus-masks-charges/texas-men-charged-with-trying-to-sell-50-million-bogus-masks-to-australian-state-idUSKBN2842U6
______________________________________________________________________
Source: U.S. Attorney's Office - Southern District of Texas
FOR IMMEDIATE RELEASE
Tuesday, November 24, 2020
Two Houston men charged with attempting to fraudulently sell 50 million masks
HOUSTON – Two Houston area men have been charged for attempting to fraudulently sell 50 million non-existent N95 facemasks to a foreign government, announced U.S. Attorney Ryan K. Patrick.
Paschal Ngozi Eleanya, 46, turned himself in to authorities today and is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon at 2 p.m. Authorities took Arael Doolittle, 55, into custody Nov. 20. He made his initial appearance yesterday and is set for an arraignment and detention hearing Nov. 25 at 10 a.m.
A federal grand jury returned the three-count indictment Nov. 19. Both are charged for their role in a scheme to sell 50 million 3M model 1860 N95 respirator masks to a foreign government they did not actually possess. The indictment also alleges they defrauded a foreign government out of more than $317 million - the total purchase price of the masks
According to the indictment, Doolittle, Eleanya and their brokers negotiated a sales price for the masks that was five times the public list price that 3M had set. The two expected to personally obtain up to $275 million as a result of the fraudulent scheme, according to the charges. Based on their representations, the foreign government allegedly wired the funds to complete the purchase.
Authorities disrupted the transaction before it could be completed.
If convicted, both Doolittle and Eleanya face up to five years in prison for conspiracy and up to 20 years in prison for each of the two counts of wire fraud. Each of these charges also carry a possible $250,000 maximum fine.
-snip-
Tuesday, November 24, 2020
Two Houston men charged with attempting to fraudulently sell 50 million masks
HOUSTON – Two Houston area men have been charged for attempting to fraudulently sell 50 million non-existent N95 facemasks to a foreign government, announced U.S. Attorney Ryan K. Patrick.
Paschal Ngozi Eleanya, 46, turned himself in to authorities today and is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon at 2 p.m. Authorities took Arael Doolittle, 55, into custody Nov. 20. He made his initial appearance yesterday and is set for an arraignment and detention hearing Nov. 25 at 10 a.m.
A federal grand jury returned the three-count indictment Nov. 19. Both are charged for their role in a scheme to sell 50 million 3M model 1860 N95 respirator masks to a foreign government they did not actually possess. The indictment also alleges they defrauded a foreign government out of more than $317 million - the total purchase price of the masks
According to the indictment, Doolittle, Eleanya and their brokers negotiated a sales price for the masks that was five times the public list price that 3M had set. The two expected to personally obtain up to $275 million as a result of the fraudulent scheme, according to the charges. Based on their representations, the foreign government allegedly wired the funds to complete the purchase.
Authorities disrupted the transaction before it could be completed.
If convicted, both Doolittle and Eleanya face up to five years in prison for conspiracy and up to 20 years in prison for each of the two counts of wire fraud. Each of these charges also carry a possible $250,000 maximum fine.
-snip-
Read more: https://www.justice.gov/usao-sdtx/pr/two-houston-men-charged-attempting-fraudulently-sell-50-million-masks
