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Houston Men Charged in $317 Million Mask Fraud
HOUSTON – Two Houston-area men are facing federal charges for attempting to pull off a brazen scheme to sell 50 million nonexistent N95 masks to a foreign government, authorities announced Tuesday. The alleged fraud netted the pair a potential $275 million profit, exploiting global demand during the height of the pandemic.
Paschal Ngozi Eleanya, 46, turned himself in to authorities and is scheduled to appear before U.S. Magistrate Judge Sam S. Sheldon today. Arael Doolittle, 55, was taken into custody November 20th and appeared in court yesterday. He is slated for an arraignment and detention hearing November 25th. Both men were indicted by a federal grand jury on November 19th.
The indictment details a scheme where Doolittle and Eleanya negotiated a sales price five times the standard list price set by 3M for the model 1860 N95 respirators. The foreign government, desperate for protective gear, allegedly wired the full $317 million purchase price before the Secret Service intervened, halting the transaction. This wasn’t a simple case of inflated pricing; it was a complete fabrication of available product.
Investigators say the two defendants, along with their brokers, knowingly offered masks they didn’t possess, banking on the urgency of the situation and the willingness of the foreign government to pay a premium. The scheme highlights the dark side of the pandemic, where opportunists preyed on global fear and need. The Department of Justice’s COVID-19 Hoarding and Price Gouging Task Force is actively investigating similar cases nationwide.
If convicted, both Doolittle and Eleanya face up to five years in prison for conspiracy to commit wire fraud. Each of the two counts of wire fraud carries a potential sentence of up to 20 years behind bars, as well as a maximum fine of $250,000 per count. Assistant U.S. Attorney Justin R. Martin is prosecuting the case, with the Secret Service leading the investigation.
The Department of Justice urges the public to report COVID-19 related fraud, hoarding, or price-gouging to the National Center for Disaster Fraud’s (NCDF) National Hotline at (866) 720-5721 or through the NCDF website. Remember, an indictment is merely an accusation, and both men are presumed innocent until proven guilty in a court of law.
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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