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| Another Thing to Fear Out There: Coronavirus Scammers | Another Thing to Fear Out There: Coronavirus Scammers |
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| The white banner with images of red crosses had been hastily erected in front of two pop-up tents at a convenience store parking lot in central Louisville, Ky. “Covid-19 testing here,” it read. | The white banner with images of red crosses had been hastily erected in front of two pop-up tents at a convenience store parking lot in central Louisville, Ky. “Covid-19 testing here,” it read. |
| A clutch of workers in white hazmat suits swabbed the mouths of drivers, who had each forked over $240 to learn whether they had been infected with the coronavirus. | A clutch of workers in white hazmat suits swabbed the mouths of drivers, who had each forked over $240 to learn whether they had been infected with the coronavirus. |
| “I have managed hospitals for years,” a man in charge told journalists and skeptical community activists at the scene on Wednesday. “We are doing things the right way.” | “I have managed hospitals for years,” a man in charge told journalists and skeptical community activists at the scene on Wednesday. “We are doing things the right way.” |
| But nothing about the venture was right, from the workers’ failure to change gloves between customers to a bogus claim on a sign that the operation was approved by “HIPPA,” a misspelled acronym for the federal law that restricts how health data can be shared. | But nothing about the venture was right, from the workers’ failure to change gloves between customers to a bogus claim on a sign that the operation was approved by “HIPPA,” a misspelled acronym for the federal law that restricts how health data can be shared. |
| Instead, said David James, the president of the Louisville Metro Council, it was a flagrant attempt to con panicked citizens into handing over their money, along with social security numbers and credit card information that could be used for identity theft. | Instead, said David James, the president of the Louisville Metro Council, it was a flagrant attempt to con panicked citizens into handing over their money, along with social security numbers and credit card information that could be used for identity theft. |
| “It was ridiculous,” Mr. James said. He estimated that more than 100 people were deceived before the leaders of the apparently fake testers threw their supplies into the back of a truck and fled north up the highway. | “It was ridiculous,” Mr. James said. He estimated that more than 100 people were deceived before the leaders of the apparently fake testers threw their supplies into the back of a truck and fled north up the highway. |
| Federal, state and local law enforcement authorities are reporting an explosion of such scams as fraudsters move to capitalize on public panic over the fast-moving pandemic and the flood of federal money making its way to most Americans to help address the economic fallout. | Federal, state and local law enforcement authorities are reporting an explosion of such scams as fraudsters move to capitalize on public panic over the fast-moving pandemic and the flood of federal money making its way to most Americans to help address the economic fallout. |
| “We are seeing fraud across the board, everything from low-tech to very sophisticated schemes,” said G. Zachary Terwilliger, the U.S. attorney for the Eastern District of Virginia. The pandemic has affected so many people in so many different ways, he said, that “it just allows the fraudsters to have their buffet, as it were, to prey upon vulnerable people.” | “We are seeing fraud across the board, everything from low-tech to very sophisticated schemes,” said G. Zachary Terwilliger, the U.S. attorney for the Eastern District of Virginia. The pandemic has affected so many people in so many different ways, he said, that “it just allows the fraudsters to have their buffet, as it were, to prey upon vulnerable people.” |
| Seeking to stay ahead of the curve, the Justice Department has set up a task force to investigate price-gouging and prosecutors have been instructed to prioritize fraud cases. With more than $2 trillion in federal assistance pouring into the economy, the authorities are girding for both lone wolf operations and more complicated schemes akin to those that arose during the 2008 federal program to bail out financial institutions. | Seeking to stay ahead of the curve, the Justice Department has set up a task force to investigate price-gouging and prosecutors have been instructed to prioritize fraud cases. With more than $2 trillion in federal assistance pouring into the economy, the authorities are girding for both lone wolf operations and more complicated schemes akin to those that arose during the 2008 federal program to bail out financial institutions. |
| Other agencies have followed suit. The Food and Drug Administration has issued warning letters to more than 15 companies peddling unproven treatments or diagnostic tests. State attorneys general are fighting the same practices by issuing cease-and-desist orders. | Other agencies have followed suit. The Food and Drug Administration has issued warning letters to more than 15 companies peddling unproven treatments or diagnostic tests. State attorneys general are fighting the same practices by issuing cease-and-desist orders. |
| The Environmental Protection Agency has threatened legal action against retailers that sell unregistered disinfectants and sanitizers that falsely claim to protect against the virus. And the Federal Trade Commission reported Tuesday that the number of coronavirus-related complaints it had received from consumers this year had doubled during the previous week, reaching more than 7,800. | The Environmental Protection Agency has threatened legal action against retailers that sell unregistered disinfectants and sanitizers that falsely claim to protect against the virus. And the Federal Trade Commission reported Tuesday that the number of coronavirus-related complaints it had received from consumers this year had doubled during the previous week, reaching more than 7,800. |
| “Scams follow the headlines, and that’s certainly the case with this,” said Monica Vaca, a consumer protection lawyer for the agency. | “Scams follow the headlines, and that’s certainly the case with this,” said Monica Vaca, a consumer protection lawyer for the agency. |
| Last month, Dr. Alexander G. Salerno, an internist in East Orange, N.J., was desperately searching for personal protective equipment for his fellow medical workers. “It is like trying to find spare change in your couch,” he said. | Last month, Dr. Alexander G. Salerno, an internist in East Orange, N.J., was desperately searching for personal protective equipment for his fellow medical workers. “It is like trying to find spare change in your couch,” he said. |
| His regular suppliers were out, but through similarly hard-pressed medical providers commiserating in a WhatsApp group chat, he was able to contact several sellers. A man who never revealed his name to Dr. Salerno — and who the authorities later said was operating out of an auto body shop — agreed to sell him 3,000 surgical masks and 2,800 sterile gowns for $12,000, a markup of about 700 percent. Dr. Salerno wired the money to a bank account. | His regular suppliers were out, but through similarly hard-pressed medical providers commiserating in a WhatsApp group chat, he was able to contact several sellers. A man who never revealed his name to Dr. Salerno — and who the authorities later said was operating out of an auto body shop — agreed to sell him 3,000 surgical masks and 2,800 sterile gowns for $12,000, a markup of about 700 percent. Dr. Salerno wired the money to a bank account. |
| When he went to pick up some of the supplies on March 18, he said, the man led him to a warehouse packed with enough medical equipment to outfit an entire hospital. | When he went to pick up some of the supplies on March 18, he said, the man led him to a warehouse packed with enough medical equipment to outfit an entire hospital. |
| Inside, he saw pallet upon pallet of N95 protective masks, surgical gowns, Clorox wipes and hand sanitizers. “He had everything, right from the factory, certified real stuff,” Dr. Salerno said. | Inside, he saw pallet upon pallet of N95 protective masks, surgical gowns, Clorox wipes and hand sanitizers. “He had everything, right from the factory, certified real stuff,” Dr. Salerno said. |
| The doctor said he tried and failed to alert the state attorney general’s office. But the morning after a local television station aired a story about his experience, F.B.I. agents appeared at his office. | The doctor said he tried and failed to alert the state attorney general’s office. But the morning after a local television station aired a story about his experience, F.B.I. agents appeared at his office. |
| “We jumped all over it,” said Craig Carpenito, the U.S. attorney for the District of New Jersey who leads the task force from Newark. “It’s outrageous. If I was married to, or if I was a health care professional, I would be horrified right now that I can’t get the simple equipment I need for protection.” | “We jumped all over it,” said Craig Carpenito, the U.S. attorney for the District of New Jersey who leads the task force from Newark. “It’s outrageous. If I was married to, or if I was a health care professional, I would be horrified right now that I can’t get the simple equipment I need for protection.” |
| The seller, Baruch Feldheim of Brooklyn, ran a company called “Solo Supplies” that had compiled a vast stockpile on the open market, including from a source in Canada, of 192,000 N95 masks, 598,000 pairs of surgical gloves and 130,000 other items like surgical masks, the authorities said. | The seller, Baruch Feldheim of Brooklyn, ran a company called “Solo Supplies” that had compiled a vast stockpile on the open market, including from a source in Canada, of 192,000 N95 masks, 598,000 pairs of surgical gloves and 130,000 other items like surgical masks, the authorities said. |
| Mr. Feldheim was arrested on Monday and charged with false statements and — because agents said he deliberately coughed in their direction and said he was sick with the virus — assaulting a federal officer. Asked why he was not charged with the crime of hoarding essential materials, authorities said that the investigation was continuing. | Mr. Feldheim was arrested on Monday and charged with false statements and — because agents said he deliberately coughed in their direction and said he was sick with the virus — assaulting a federal officer. Asked why he was not charged with the crime of hoarding essential materials, authorities said that the investigation was continuing. |
| Using its authority under the Defense Production Act, the federal government bought Mr. Feldheim’s entire inventory — at standard prices — and shipped it to hard-pressed medical workers in New York and New Jersey. | Using its authority under the Defense Production Act, the federal government bought Mr. Feldheim’s entire inventory — at standard prices — and shipped it to hard-pressed medical workers in New York and New Jersey. |
| Updated June 22, 2020 | |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “It’s just about the most un-American thing that I have encountered in my life,” Mr. Carpenito said. “People are out there looking to profit, despicably, from the greatest national crisis we have seen since World War II.” | “It’s just about the most un-American thing that I have encountered in my life,” Mr. Carpenito said. “People are out there looking to profit, despicably, from the greatest national crisis we have seen since World War II.” |
| The Newark case is one of a handful that federal prosecutors have brought over the past few weeks. In Austin, Texas, the F.B.I. shut down a website that promised consumers access to World Health Organization “vaccine kits” in exchange for a shipping charge of $4.95, payable by credit card. No vaccine for the virus exists. | The Newark case is one of a handful that federal prosecutors have brought over the past few weeks. In Austin, Texas, the F.B.I. shut down a website that promised consumers access to World Health Organization “vaccine kits” in exchange for a shipping charge of $4.95, payable by credit card. No vaccine for the virus exists. |
| In Georgia, F.B.I. agents arrested a 49-year-old man on charges of collecting kickbacks for Covid-19 tests and screenings for other respiratory illnesses in a scheme that aimed to submit $1.1 million in fraudulent Medicare claims. According to court documents, the man was upfront about his motives. | In Georgia, F.B.I. agents arrested a 49-year-old man on charges of collecting kickbacks for Covid-19 tests and screenings for other respiratory illnesses in a scheme that aimed to submit $1.1 million in fraudulent Medicare claims. According to court documents, the man was upfront about his motives. |
| “Everybody has been chasing the Covid dollar bird,” he said in a telephone conversation, according to court papers. “While there are people going through what they are going through, you can either go bankrupt or you can prosper.” | “Everybody has been chasing the Covid dollar bird,” he said in a telephone conversation, according to court papers. “While there are people going through what they are going through, you can either go bankrupt or you can prosper.” |
| That was apparently the view of another operator who promised a California union of nearly 100,000 health care workers that he could provide them 39 million N95 masks. But when health care providers like Kaiser Permanente sought to verify and inspect the man’s supply chain, he proved more and more elusive. | That was apparently the view of another operator who promised a California union of nearly 100,000 health care workers that he could provide them 39 million N95 masks. But when health care providers like Kaiser Permanente sought to verify and inspect the man’s supply chain, he proved more and more elusive. |
| Last week, a federal prosecutor contacted the union, the Service Employees International Union-United Healthcare Workers West, for details about the seller. “As far as we know, no money changed hands,” said Steve Trossman, a spokesman for the union, which was trying to serve as an intermediary to hospitals. “The really bad thing was, the masks were desperately needed.” | Last week, a federal prosecutor contacted the union, the Service Employees International Union-United Healthcare Workers West, for details about the seller. “As far as we know, no money changed hands,” said Steve Trossman, a spokesman for the union, which was trying to serve as an intermediary to hospitals. “The really bad thing was, the masks were desperately needed.” |
| In Southern California, agents arrested a 53-year-old, small-time actor for seeking investments in a nonexistent company that he claimed was just days away from marketing pills that would ward off the virus and injections that would cure Covid-19. The authorities said his YouTube and Instagram videos, in which he displayed a syringe of clear liquid or nondescript white pills, had been viewed more than two million times. | In Southern California, agents arrested a 53-year-old, small-time actor for seeking investments in a nonexistent company that he claimed was just days away from marketing pills that would ward off the virus and injections that would cure Covid-19. The authorities said his YouTube and Instagram videos, in which he displayed a syringe of clear liquid or nondescript white pills, had been viewed more than two million times. |
| A self-described genius entrepreneur, the man claimed in a text to a cooperating witness that a Los Angeles patient stricken by Covid-19 rose from a sickbed and “walked out 51 hours after my injection,” the authorities said. He claimed he knew a doctor with White House ties who was on his way to President Trump’s Mar-a-Lago resort in Florida for an emergency order authorizing his drugs and promised a $300,000 investment in his company would yield a $30 million return. | A self-described genius entrepreneur, the man claimed in a text to a cooperating witness that a Los Angeles patient stricken by Covid-19 rose from a sickbed and “walked out 51 hours after my injection,” the authorities said. He claimed he knew a doctor with White House ties who was on his way to President Trump’s Mar-a-Lago resort in Florida for an emergency order authorizing his drugs and promised a $300,000 investment in his company would yield a $30 million return. |
| Law enforcement officials are warning consumers to be especially wary of cyberscams, including sophisticated emails claiming to be from the Centers for Disease Control and Prevention, the Red Cross or other health organizations. One study suggested 3 percent of coronavirus-related domain names registered since January were malicious, while another 5 percent were suspicious. State attorneys general, like Letitia James of New York, have been warning companies that register domain names to be more vigilant. | Law enforcement officials are warning consumers to be especially wary of cyberscams, including sophisticated emails claiming to be from the Centers for Disease Control and Prevention, the Red Cross or other health organizations. One study suggested 3 percent of coronavirus-related domain names registered since January were malicious, while another 5 percent were suspicious. State attorneys general, like Letitia James of New York, have been warning companies that register domain names to be more vigilant. |
| Such frauds are only expected to multiply as the federal government doles out financial aid to individuals and businesses as part of the $2.2 trillion stimulus package. | Such frauds are only expected to multiply as the federal government doles out financial aid to individuals and businesses as part of the $2.2 trillion stimulus package. |
| Twelve years later, federal investigators are still pursuing bad actors who misused the $475 billion federal program intended to bail out banks and financial institutions after the subprime mortgage crisis in 2008. More than 400 people have been prosecuted, including 76 bankers who went to prison. | Twelve years later, federal investigators are still pursuing bad actors who misused the $475 billion federal program intended to bail out banks and financial institutions after the subprime mortgage crisis in 2008. More than 400 people have been prosecuted, including 76 bankers who went to prison. |