State, federal prosecutors announce fraud crackdowns amid coronovirus crisis

Federal and state prosecutors are cracking down to stop those trying to use schemes to fraudulently profit from the coronavirus outbreak.

U.S. Attorney Scott W. Brady named Assistant U.S. Attorney Shaun Sweeney, a senior litigation counsel, the covid-19 fraud coordinator.

Sweeney will lead the prosecution of scammers who may be trying to profit from the crisis, Brady said in a statement.

Brady’s move was made at the urging of Attorney General William Barr who asked all federal prosecutors to be on alert to detect, investigate and prosecute those trying to profit from the pandemic who are breaking laws.

“The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated,” Barr said in a statement.

A number of scams have surfaced including those using email phishing schemes that claim to be legitimate health organizations, others that are advertising counterfeit virus test kits, and others who are seeking donations for charities that don’t exist, Brady said.

The U.S. Attorney’s Office’s website now contains a front page button to make it easier to report fraud to the office and the FBI.

Pennsylvania Attorney General Josh Shapiro is also cracking down on fraud and price-gouging during the pandemic.

Shapiro’s office has a dedicated price-gouging email that has received more than 1,000 reports of price hikes in Pennsylvania, Shapiro said in a statement.

The email is pricegouging@attorneygeneral.gov.

“During these uncertain times, taking advantage of consumers in need of cleaning supplies and paper products is not only outrageous, it’s illegal,” Shapiro said in a statement.

As of Tuesday, Shapiro’s office has received 1,171 reports, Of them 45 complaints have been verified and 34 cease-and-desist letters have been sent, according to Shapiro’s office.

Among the things reported to the office were a suburban Philadelphia store that was selling a $2 bottle of hand sanitizer for $19, Shapiro said.

The store was issued a cease and desist letter from the office’s Bureau of Consumer Protection.