U.S. Atty. Scott Brady of the Western District of Pennsylvania said FBI agents and prosecutors stumbled onto the arrangement while looking into whether they could intercept the masks for the Federal Emergency Management Agency under the Defense Production Act.
The federal government has been quietly seizing supplies across the country, taking the orders placed by hospitals and clinics and not publicly reporting where the products are being routed.
But in this case, there was no warehouse, and there were no masks to seize.
Brady said investigators tracked the tip back to a Pittsburgh businessman, who said he had been working with the union to secure millions of masks, some of which were purported to be sitting in a Georgia warehouse. Brady said the businessman had been using WhatsApp to connect with a broker in Australia and a supplier in Kuwait, who are both now the target of a federal investigation.
Brady, the federal prosecutor, said the Pittsburgh businessman told investigators he was buying the masks at $3.50 each and turning a "slight profit" in the SEIU-led deal. The union said the masks were being purchased for $5 and that SEIU was not making any money.
How about anyone affiliated with SEIU?
It’s unclear whether the Pittsburgh middleman intended to pocket the entire $9 million profit.
Well, my goodness. Why am I thinking "60/40"?
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