Stockbridge, Georgia businessman Milton Ayimadu, a/k/a Don Milton, 22, has been arraigned on federal charges for hoarding and price gouging more than 200,000 face masks during the peak of the COVID-19 pandemic, in direct violation of the Defense Production Act of 1950. Prosecutors say Ayimadu turned public desperation into profit, jacking prices on critical protective gear when hospitals and everyday Americans were scrambling to find supplies.
According to criminal information filed in Atlanta, Ayimadu purchased the masks from a foreign supplier at approximately $2.50 each and resold them through his website, BabyPuuPu.com, for $5.00 apiece—a 100 percent markup. Between early March and May 2020, he processed over 22,000 transactions, exploiting the nationwide shortage while manufacturers of authentic N95 masks continued selling at pre-pandemic prices under $2.00 each.
The Defense Production Act was activated on March 18, 2020, when the President invoked emergency powers to prevent hoarding of scarce materials. By March 25, the Department of Health and Human Services had specifically designated face masks as protected critical supplies. Despite this, Ayimadu allegedly continued to stockpile and inflate prices on massive quantities of masks, directly contravening federal law.
“Ayimadu allegedly saw the unprecedented COVID-19 global pandemic as an opportunity to make a profit,” said U.S. Attorney Byung J. ‘BJay’ Pak. “Desperate to find personal protective equipment during the pandemic, thousands of customers unfortunately paid his inflated prices.”
Federal agencies, including the FBI, IRS Criminal Investigation, Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service, launched a coordinated crackdown. “When the nation needed facemasks the most, Ayimadu decided to turn our fears into dollars,” said acting Special Agent in Charge Robert Hammer of HSI. “We’re coming after criminals who exploit crises for cash.”
Ayimadu was arraigned on August 6, 2020, before U.S. Magistrate Judge Russell G. Vineyard. The criminal information contains only charges; the defendant is presumed innocent until proven guilty. The case underscores a broader federal push to prosecute pandemic profiteers who weaponized fear and scarcity for financial gain.
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Key Facts
- State: Georgia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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