The seller from new York is accused by Federal prosecutors of inflating the prices and the accumulation of vital medical equipment, believed to be the first such prosecution under the Law on defence production in 1950.
Amardip Singh (45 years) is shown as obvineniy in the act, compiled in Central Islip, new York on Friday. It is assumed that the accumulated Amardip masks, medical clothing and antibacterial substances in quantities exceeding necessary for the management of shops selling clothes and sports goods.
Price Gouging Under Trump’s Defense Production Act Order Responding To The Coronavirus. Amardeep Singh, 45, had been hoarding face masks, face shields, surgical gowns, and disinfecting products at a Long Island warehouse and selling them at inflated prices https://t.co/UsLwlJMl8w
— Reformed Bully (@ReformedBully) April 25, 2020
Lawyer Singh Brandy Gerstmann vehemently denies the charges, including the nuances of application of law is rather blurred, which can penalize the sellers. In his opinion, is contrary to the Constitution.
If Singh is found guilty, he will be likely fine in the amount of $10 thousand and a term in Federal prison up to one year.
The law on the defence industry of 1950 is the law since the Korean war that allows the government to control the production, distribution and use of materials that are considered scarce in the case of force majeure.
The act considers as a crime the accumulation of «more than can be considered reasonable for business the number of» materials that are scarce, for example, personal protective equipment. The same law also prohibits the sale of scarce goods at a price «above the prevailing market value.»
Craig Carpenito from the Ministry of justice said: «the Indictment describes the defendant who allegedly saw the devastating pandemic COVID-19 as the possibility of obtaining illegal profits on the necessary personal protection equipment. The U.S. Department of justice and its partners will intervene whenever would illegally profit from the speculators and the crooks tried to break the law, profiting from public fear.»
