A Florida company, JDM Supply LLC, along with two affiliated individuals, has entered a guilty plea on charges of attempting to defraud a hospital by selling non-compliant N95 masks as the COVID-19 pandemic unfolded. Daniel Motha and Jeffrey Motha also admitted guilt in charges related to price gouging, according to a recent report by the U.S. Attorney's Office. The case revealed how the company conspired to distribute the misbranded masks, exploiting a critical shortage during the public health crisis.
In 2020, JDM and another company, referred to only as "Company 1," cooperated to misleadingly label and sell masks as NIOSH-approved N95 respirators. These masks were to then knowingly be sold to a hospital, which paid for hundreds of thousands of these masks, operating under what the U.S Attorney's office calls a misguided belief. One of the samples tested by a NIOSH lab demonstrated filter efficiency rates between 83.94% and 93.24%, failing to meet the required standards for N95 masks. Sentencing for the Motha brothers is set for March 4, 2025, with JDM’s sentencing to follow on March 25.
The charges against JDM and the Mothas include conspiracy to introduce misbranded devices into interstate commerce with the intent to defraud or mislead, a violation punishable by significant fines and potential probation. Acts of price gouging under the Defense Production Act could lead to imprisonment and further fines. A third individual connected to the scheme, Jason Colantuoni, had already pleaded guilty to conspiracy to commit price gouging back in August 2023.
The fraudulent activities were unveiled as part of the Department of Justice's COVID-19 Fraud Enforcement Task Force's ongoing efforts. This task force was established to combat and prevent pandemic-related fraud. "The charge of conspiracy to commit price gouging in violation of the Defense Production Act provides for a sentence of up to one year in prison; up to one year of supervised release; and a fine of up to $10,000," according to a press reelase from the U.S Attorney's office.
Acting U.S. Attorney Joshua S. Levy, along with inspectors and special agents from several federal agencies including the U.S. Postal Inspection Service, FDA Office of Criminal Investigations, and the FBI, played roles in announcing the case outcomes. Individuals with information about similar fraud cases are encouraged to report them to the Department of Justice’s National Center for Disaster Fraud Hotline.
