A California company has been charged with tricking health care providers by selling misbranded N95 masks during the early months of the COVID-19 crisis. Advoque Safeguard LLC (ASG), alongside individuals Jason Azevedo, Paul Shrater, and Andrew Stack, who are connected to the company's management, are set to plead guilty to related charges. A statement from the U.S. Attorney's Office outlines the conspiracy, which involved the distribution of the inapt safety equipment across states with the intent to defraud.
In a related case, JDM Supply LLC and two individuals were also charged and agreed to plead guilty as part of a broader investigation by the Justice Department's COVID-19 Fraud Enforcement Task Force. Documents reveal, ASG and JDM fooled at least one hospital—referred to as "HOSPITAL 1"—into purchasing and paying for facemasks purported to be NIOSH-approved N95 respirators. Although these masks were not used by HOSPITAL 1, and eventually returned, the officials stated in the press release.
The charges are severe, with conspiracy to introduce or deliver into interstate commerce a misbranded device with intent to defraud potentially drawing a $500,000 fine—or double the profit from the crime—and a maximum of five years of probation. Those simply introducing such misbranded devices risk up to a year in prison, in addition to supervised release and $100,000 fines.
Authorities including Acting U.S. Attorney Joshua S. Levy, several Inspector Generals, and FBI and Homeland Security officials have made announcements regarding the charges. They were prosecuted by Assistant U.S. Attorneys Bill Brady and Howard Locker, with the detailed range of charges and penalties. The masks in question, upon testing by NIOSH, showed filtration efficiency levels below the standard for N95 respirators.
The Justice Department has emphasized the role of the public in identifying fraudulent schemes related to COVID-19. Information can be reported to the Department of Justice’s National Center for Disaster Fraud Hotline or via the NCDF Web Complaint Form. While the charges laid out are severe allegations, the accused parties remain presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
