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Michigan Man Indicted for Multi-Million Dollar N95 Mask Fraud
A Michigan man has been charged with wire fraud, mail fraud, and money laundering for his operation of an e-commerce site that claimed to have N95 masks for sale during the current COVID-19 epidemic. Rodney L. Stevenson II, 38, of Michigan, was previously arrested and charged via criminal complaint on April 22, 2020.
According to the indictment, Stevenson operated EM General, a Michigan limited liability company created in September 2019, which purported to sell N95 masks with N99 filters. At the onset of the COVID-19 pandemic in February 2020, EM General and its website, controlled by Stevenson, advertised that it had N95 masks ‘in stock’ and available for shipping. EM General sold many of these masks for as much as $24.95 each.
The indictment alleges that, as the pandemic worsened and demand for N95 masks increased dramatically, EM General’s sales skyrocketed. EM General’s total sales from approximately on or about February 11, 2020, to approximately on or about March 8, 2020, were approximately $3,500,000 involving over 25,000 customers, the vast majority of which were sales of N95 masks that were never delivered to customers. This amount included over $900,000 in sales on February 28, 2020, alone.
Stevenson is charged with nine counts of wire fraud, in violation of 21 U.S.C. § 1343; one count of mail fraud, in violation of 18 U.S.C. § 1341; five count of laundering of monetary instruments, in violation of 18 U.S.C. § 1956(a)(1)(A)(i); and one count of money laundering, in violation of 18 U.S.C. § 1957. If convicted, the defendant faces a maximum sentence of 20 years of prison, 5 years of probation, and a fine of $250,000 for each count of wire fraud or mail fraud, and a maximum sentence of 10 years of prison, 3 years of probation, and a fine of $250,000 for each count of laundering of monetary instruments or money laundering.
Stevenson is currently scheduled for arraignment on the indictment on January 15, 2021, before Alex Tse, U.S. Magistrate in San Francisco, California. An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. An investigation by the U.S. Postal Inspection Service and the Federal Bureau of Investigation led to the charges.
Mandatory Facts: Defendant: Rodney L. Stevenson II, Crime: Wire Fraud, Mail Fraud, Money Laundering, State: California, Year: 2020, Sentence: Pending, Fine: $250,000, Other: $3,500,000 in sales, 25,000 customers affected.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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