Guam – Kwong Yau Lam was sentenced to one year of probation and ordered to pay a $39,690 criminal fine after being convicted of defrauding consumers with false claims of virus protection, according to court documents unsealed this week. The case, investigated by the Environmental Protection Agency’s Criminal Investigation Division (CID) and Homeland Security Investigations (HSI), highlights the growing threat of unapproved products marketed during public health crises.
Beginning in March 2020, Lam sold products branded as “Virus Shut Out Cards” – small cards intended to be worn on lanyards – with the explicit, yet unsubstantiated, claim that they protected wearers from viruses, including COVID-19. The EPA determined the cards were not registered, nor authorized, for use as a disinfectant or sanitizer. This lack of registration is a direct violation of federal law, as any product claiming to kill or repel viruses must undergo rigorous testing and approval processes to ensure safety and efficacy.
The scheme involved the sale of approximately 100 cards to three merchants on Guam. Lam then attempted to import a larger quantity – 900 cards – from a relative in Hong Kong. However, U.S. Customs and Border Protection agents in Honolulu, Hawaii, intercepted two boxes of the shipment. Following the seizure, investigators with HSI interviewed Lam. During the interview, Lam allegedly made false statements, claiming he had not sold any cards in Guam and that he had not sought any government approval for importing the devices. Evidence quickly surfaced proving these statements to be untrue.
The EPA’s CID agents worked in conjunction with HSI to build the case, demonstrating the agency’s commitment to prosecuting individuals who exploit public fear for financial gain. “The EPA is committed to protecting public health by ensuring that claims of antimicrobial efficacy are truthful and supported by scientific evidence,” stated an EPA official familiar with the case, who requested anonymity. “Those who attempt to circumvent the law and profit from false promises will be held accountable.”
Key Facts
- Defendant: Kwong Yau Lam
- Crime: Sale of unregistered and falsely advertised virus protection cards.
- Location: Guam
- Year: 2022
- Sentencing: One year of probation and a $39,690 criminal fine.
- Products: “Virus Shut Out Cards” – claimed to protect against viruses, including COVID-19.
Legal Violations & Penalties
Lam was convicted on multiple federal charges, including:
- 18 U.S.C. 371 – Conspiracy to Defraud the United States: This charge carries a maximum penalty of 5 years in prison and a fine.
- 7 U.S.C. 136j(a)(1)(A) – Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) Violation: Selling an unregistered pesticide (in this case, a product claiming to kill or repel viruses) is a misdemeanor with a maximum penalty of one year in prison and a $5,000 fine.
- 18 U.S.C. 1001 – False Statements: Knowingly making false statements to a federal investigator is a felony, carrying a maximum penalty of 5 years in prison and a fine.
- 7 U.S.C. 136l(b)(1)(B) – FIFRA Violation: Distribution of an unregistered pesticide is a misdemeanor, with penalties similar to 7 U.S.C. 136j(a)(1)(A).
The case serves as a stark reminder to consumers to be wary of unverified health claims, especially during times of public health emergencies. The EPA encourages anyone suspecting the sale of illegal or falsely advertised pesticides to report it to their local EPA office or through the agency’s website.
Source: EPA ECHO Enforcement Case Database
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