Newark, New Jersey – Craig Carpenito, United States Attorney, reported that a Thailand citizen was charged on 29th September 2020 for swindling a New Jersey firm in its procurement of COVID-19 PPE (personal protective equipment) meant for preventing the coronavirus.
The accused person, known only through the nickname ‘Dang Chanchai,’ is indicted with 9 charges of wire fraud for swindling the victim firm of about 1.5 million U.S dollars.
As per the charge:
Between March 2020 and May 2020, Dang Chanchai deliberately and purposefully planned a conspiracy to swindle the victim firm by use of materially untrue and deceitful pretenses, creating untrue statements concerning his capability to deliver 3M firm (3M) N95 surgical and masks via an entity Dang Chanchai pinpointed as UTE Group Company Limited.
Dang Chanchai deceitfully claimed UTE Group Company Limited and himself as a supplier of 3M N95 masks. On 17th March 2020, Dang Chanchai issued the victim firm a contract that deceitfully claimed that UTE Group Company Limited could and would distribute ten million N95 masks. The victim firm admitted to buying from Dang Chanchai and UTE Group Company Limited about 1 million 3M N95 masks for ultimate distribution to health care workers in Europe.
Between 20th April 2020 and 30th April 2020, Dang Chanchai issued the victim firm counterfeit documents alleging to be from 3M, inclusive of a counterfeit procurement order from 3M displaying the order by UTE Group Company Limited of the masks bought by the victim firm. The counterfeit documents further comprised untrue statements regarding the status of manufacturing the masks and payment requests to meet the order. According to the counterfeit 3M documents, the firm requested 300,000 more masks. Dang Chanchai supplied the firm with two extra phony 3M statements, authenticating the new order and deceitfully claiming that the newly placed order would be ready for collection on 13th May 2020.
According to Dang Chanchai’s fraudulent claims, the victim firm wired reimbursements amounting to 1,494,306 million U.S. dollars to UTE Group Company Limited. UTE Group Limited Company and Dang Chanchai never supplied a single 3M N95 mask to the firm and stopped communicating with the firm after getting the last reimbursement under the deal.
Every wire fraud charge bears a maximum potential punishment of 240 months in federal prison and a 250,000 U.S. dollars fine, or two times the gross profit or loss from the crime, whichever is more.
Craig Carpenito, United States Attorney, acknowledged special agents of the Federal Bureau of Investigation, under the instructions of Special Agent George M. Crouch Jr. in Charge of the FBI, for their outstanding investigation resulting in this charge.
United States Attorney’s Office Economic Crimes Unit U.S. Assistant Attorney Blake Coppotelli prosecuted the matter on behalf of the American government.
William P. Barr, U.S. Attorney General, formed the COVID-19 Hoarding and Price Gouging Task Force, steered by Craig Carpenito, United States Attorney, who is harmonizing efforts with the Antitrust Division and the United States Attorneys across the nation wherever criminal activity concerning personal protective equipment happens. The Secretary of HHS (Health and Human Services Department) gave out a Notice classifying categories of health and medical supplies that should not be traded or hoarded for unreasonable prices.
The counts and accusations contained in the charge are just allegations, and the accused people remain or are presumed innocent until proven guilty of the charges.
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