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HOUSTON: Two Houston-area men have been charged with attempting to fraudulently sell 50 million N95 respirators they did not have to the New South Wales government in Australia at an inflated price of $ 317.6 million, they said. US prosecutors on Tuesday (Nov. 24). .
Paschal Eleanya, 46, and Arael Doolittle, 55, were charged in a three-count indictment of wire fraud and conspiracy for attempting to sell 3M-branded masks at five times the list price to a non-foreign government. identified.
Prosecutors said Eleanya and Doolittle hoped to raise as much as $ 275 million, with the remaining money going to their “broker” and to the government officials themselves.
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 in a court hearing on Tuesday, according to the office of US Attorney Ryan Patrick.
READ: Australia opens more borders in boosting domestic travel, targets COVID-19 vaccine
Each of the two wire fraud charges carries a maximum prison sentence of 20 years.
An attorney for Doolittle did not immediately respond to requests for comment. Eleanya’s attorney could not be immediately identified.
Doolittle was separately charged last month with attempting to defraud 21 investors out of $ 1.2 million in oil and gas transactions. He has pleaded not guilty in that case.
3M, the world’s largest manufacturer of N95 masks, has filed at least 19 civil lawsuits to stop price increases, counterfeiting and other inappropriate selling practices of its masks.
Most of 3M’s N95 masks cost less than $ 2, and the St Paul, Minnesota-based company has vowed not to raise prices due to the coronavirus pandemic.
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