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A Car Salesman, a Macedonian Ex-Minister and a $45 Million Mask Scheme A Car Salesman, a Macedonian Ex-Minister and a $45 Million Mask Scheme
(8 days later)
It is an unlikely cast of characters for a multimillion-dollar municipal procurement drama, even given the chaos generated by the deadly coronavirus pandemic.It is an unlikely cast of characters for a multimillion-dollar municipal procurement drama, even given the chaos generated by the deadly coronavirus pandemic.
There is a used-car salesman from Manalapan, N.J.; the former minister of foreign investment for Macedonia; and the head of a publicly traded company that plans to transform medical waste into energy in Rhode Island. And then there is the holder of a patent on a device designed to detect damaged parcels.There is a used-car salesman from Manalapan, N.J.; the former minister of foreign investment for Macedonia; and the head of a publicly traded company that plans to transform medical waste into energy in Rhode Island. And then there is the holder of a patent on a device designed to detect damaged parcels.
More unlikely still, they seem to have limited experience in municipal contracting, or in obtaining, trading, or shipping what documents and people with knowledge of the matter say they were trying to sell to New York City: millions of 3M-brand N95 respirators that the city desperately needed for health care workers, police, paramedics and others.More unlikely still, they seem to have limited experience in municipal contracting, or in obtaining, trading, or shipping what documents and people with knowledge of the matter say they were trying to sell to New York City: millions of 3M-brand N95 respirators that the city desperately needed for health care workers, police, paramedics and others.
So, it is perhaps not surprising that the deal — like many these days, as federal, state and local governments, along with health care providers, vie for precious protective equipment — ended badly, falling apart before any masks or money changed hands.So, it is perhaps not surprising that the deal — like many these days, as federal, state and local governments, along with health care providers, vie for precious protective equipment — ended badly, falling apart before any masks or money changed hands.
What is surprising, however, is just how badly it ended for the used car dealer, Ronald J. Romano. Mr. Romano, 58, was arrested early on Tuesday morning at his Manalapan home, charged with wire fraud and wire fraud conspiracy in a three-count criminal complaint unsealed in United States District Court in Manhattan.What is surprising, however, is just how badly it ended for the used car dealer, Ronald J. Romano. Mr. Romano, 58, was arrested early on Tuesday morning at his Manalapan home, charged with wire fraud and wire fraud conspiracy in a three-count criminal complaint unsealed in United States District Court in Manhattan.
The complaint accuses him of an audacious $45 million scheme to defraud and price-gouge the city as cases of Covid-19 were skyrocketing.The complaint accuses him of an audacious $45 million scheme to defraud and price-gouge the city as cases of Covid-19 were skyrocketing.
It says he posed as an authorized 3M dealer and offered to sell the city seven million masks at a more than 400 percent markup from their list price. He was also charged with conspiring to violate the Defense Production Act, a misdemeanor.It says he posed as an authorized 3M dealer and offered to sell the city seven million masks at a more than 400 percent markup from their list price. He was also charged with conspiring to violate the Defense Production Act, a misdemeanor.
The charges come as the deadly pandemic has spawned a vast shadowy network of people who traffic in the lifesaving personal protective equipment, or P.P.E., which is sometimes the only thing that stands between health care workers and the deadly virus that causes Covid-19.The charges come as the deadly pandemic has spawned a vast shadowy network of people who traffic in the lifesaving personal protective equipment, or P.P.E., which is sometimes the only thing that stands between health care workers and the deadly virus that causes Covid-19.
With contagion and the death count ballooning worldwide, the number of scammers taking advantage of the frenzied multibillion-dollar market for the gear has also risen.With contagion and the death count ballooning worldwide, the number of scammers taking advantage of the frenzied multibillion-dollar market for the gear has also risen.
Last month, a Georgia man was charged with fraud after attempting to sell 125 million nonexistent respirator masks to the government, and two men in Southern California were charged with trying to sell a phantom stockpile of 3M face masks for $4 million, prosecutors said.Last month, a Georgia man was charged with fraud after attempting to sell 125 million nonexistent respirator masks to the government, and two men in Southern California were charged with trying to sell a phantom stockpile of 3M face masks for $4 million, prosecutors said.
In New York City, Mr. Romano was not the only man charged on Tuesday. Federal authorities also accused Richard Schirripa, a pharmacist who once owned a drugstore on Madison Avenue, of selling thousands of N95 masks to doctors and funeral directors at a 50 percent markup, often out of the trunk of his car. “This stuff is like gold right now,” a criminal complaint quoted Mr. Schirripa saying to an undercover agent.In New York City, Mr. Romano was not the only man charged on Tuesday. Federal authorities also accused Richard Schirripa, a pharmacist who once owned a drugstore on Madison Avenue, of selling thousands of N95 masks to doctors and funeral directors at a 50 percent markup, often out of the trunk of his car. “This stuff is like gold right now,” a criminal complaint quoted Mr. Schirripa saying to an undercover agent.
The charges against Mr. Romano were announced by Geoffrey S. Berman, the United States attorney for the Southern District of New York, and Margaret Garnett, the city’s Department of Investigation commissioner.The charges against Mr. Romano were announced by Geoffrey S. Berman, the United States attorney for the Southern District of New York, and Margaret Garnett, the city’s Department of Investigation commissioner.
A lawyer for Mr. Romano, Mark A. Macron, said he was still reviewing the complaint and was not yet prepared to comment.A lawyer for Mr. Romano, Mark A. Macron, said he was still reviewing the complaint and was not yet prepared to comment.
Late Tuesday afternoon, Mr. Romano appeared by video teleconference before United States Magistrate Judge Ona T. Wang and was released on a $200,000 bond.Late Tuesday afternoon, Mr. Romano appeared by video teleconference before United States Magistrate Judge Ona T. Wang and was released on a $200,000 bond.
The investigation started last month after 3M filed a federal lawsuit against Mr. Romano’s company, Performance Supply LLC, accusing it, among other things, of falsely claiming to be an authorized distributor of the highly sought-after 3M masks.The investigation started last month after 3M filed a federal lawsuit against Mr. Romano’s company, Performance Supply LLC, accusing it, among other things, of falsely claiming to be an authorized distributor of the highly sought-after 3M masks.
A few days later, federal agents showed up at Mr. Romano’s home with a search warrant to seize his phone, according to people with knowledge of the matter.A few days later, federal agents showed up at Mr. Romano’s home with a search warrant to seize his phone, according to people with knowledge of the matter.
The 25-page criminal complaint against Mr. Romano refers to several co-conspirators and “brokers” involved in P.P.E. deals. The document does not identify them by name, but it does provide details that make their identities clear, and those were confirmed by a person with knowledge of the case.The 25-page criminal complaint against Mr. Romano refers to several co-conspirators and “brokers” involved in P.P.E. deals. The document does not identify them by name, but it does provide details that make their identities clear, and those were confirmed by a person with knowledge of the case.
No one else had been charged on Tuesday or had been accused of any wrongdoing. The investigation is continuing, law enforcement officials said.No one else had been charged on Tuesday or had been accused of any wrongdoing. The investigation is continuing, law enforcement officials said.
The complaint, however, paints a damning picture of Mr. Romano’s efforts to procure and sell equipment he was not authorized to sell, with the help of his co-conspirators and the brokers.The complaint, however, paints a damning picture of Mr. Romano’s efforts to procure and sell equipment he was not authorized to sell, with the help of his co-conspirators and the brokers.
On March 22, while listening to a White House news conference, Mr. Romano exchanged text messages with one of his co-conspirators, writing that the government’s crackdown on people hoarding supplies was “not promising for us.”On March 22, while listening to a White House news conference, Mr. Romano exchanged text messages with one of his co-conspirators, writing that the government’s crackdown on people hoarding supplies was “not promising for us.”
“Going after brokers,” Mr. Romano wrote in a text that misspelled some words. “If your hoarding medical supplies come forward with fair price and they will pay. If not we will get you.”“Going after brokers,” Mr. Romano wrote in a text that misspelled some words. “If your hoarding medical supplies come forward with fair price and they will pay. If not we will get you.”
Updated June 24, 2020 Updated June 30, 2020
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.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
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.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.
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.
The co-conspirator wrote back: “We are not hoarding we are producing and selling as produced.”The co-conspirator wrote back: “We are not hoarding we are producing and selling as produced.”
Some aspects of the roles others played in the scheme have been pieced together through details from the complaint, interviews with people with knowledge of the events leading up to the failed deal and emails about it and other proposed transactions that were reviewed by The New York Times.Some aspects of the roles others played in the scheme have been pieced together through details from the complaint, interviews with people with knowledge of the events leading up to the failed deal and emails about it and other proposed transactions that were reviewed by The New York Times.
One person identified as a co-conspirator in the complaint, based on the details provided, is Gligor Tashkovich, the former minister of foreign investment for Macedonia who has worked in the financial services industry and is currently with a company called D.A. International Group., according to his LinkedIn profile.One person identified as a co-conspirator in the complaint, based on the details provided, is Gligor Tashkovich, the former minister of foreign investment for Macedonia who has worked in the financial services industry and is currently with a company called D.A. International Group., according to his LinkedIn profile.
Mr. Tashkovich was involved in discussions with Mr. Romano about selling masks to the city, documents and the people familiar with the case say.Mr. Tashkovich was involved in discussions with Mr. Romano about selling masks to the city, documents and the people familiar with the case say.
On March 24, for instance, Mr. Tashkovich sent an email to Mr. Romano under the subject line “thoughts on New York City order” and referred to “the fact that this expected incoming purchase order is from the City of New York” and said “I think this will be the secret sauce that could get them to prioritize this.”On March 24, for instance, Mr. Tashkovich sent an email to Mr. Romano under the subject line “thoughts on New York City order” and referred to “the fact that this expected incoming purchase order is from the City of New York” and said “I think this will be the secret sauce that could get them to prioritize this.”
Adam S. Kaufmann, a lawyer for Mr. Tashkovich, said his client was not part of any fraudulent scheme and had cooperated with the government’s investigation, voluntarily providing information and materials.Adam S. Kaufmann, a lawyer for Mr. Tashkovich, said his client was not part of any fraudulent scheme and had cooperated with the government’s investigation, voluntarily providing information and materials.
“Mr. Tashkovich trusted an unscrupulous supplier to whom he was introduced by a close friend,” Mr. Kaufmann said. “Ultimately, Mr. Tashkovich walked away from the deal before any funds changed hands when the supplier refused to provide the information requested.”“Mr. Tashkovich trusted an unscrupulous supplier to whom he was introduced by a close friend,” Mr. Kaufmann said. “Ultimately, Mr. Tashkovich walked away from the deal before any funds changed hands when the supplier refused to provide the information requested.”
Another man identified as a “broker” in the complaint, based on the details provided, is Auguste Jacques, the head of 3BP, Inc., a company that holds the patent for technology to determine whether a package has been damaged in shipping.Another man identified as a “broker” in the complaint, based on the details provided, is Auguste Jacques, the head of 3BP, Inc., a company that holds the patent for technology to determine whether a package has been damaged in shipping.
Mr. Jacques, who did not return telephones calls from a reporter, also contacted the city during the negotiations over the mask deal, documents show. On March 24, according to the emails, Mr. Jacques wrote to the same city procurement official that Mr. Romano had contacted when he falsely claimed to be a authorized dealer.Mr. Jacques, who did not return telephones calls from a reporter, also contacted the city during the negotiations over the mask deal, documents show. On March 24, according to the emails, Mr. Jacques wrote to the same city procurement official that Mr. Romano had contacted when he falsely claimed to be a authorized dealer.
The characters described in the complaint also appear to include Nicholas B. Campanella, a New Jersey businessman who is the chief executive officer of Sun Pacific Holdings Corp., the company whose subsidiary plans to convert medical waste to energy, people familiar with the matter said.The characters described in the complaint also appear to include Nicholas B. Campanella, a New Jersey businessman who is the chief executive officer of Sun Pacific Holdings Corp., the company whose subsidiary plans to convert medical waste to energy, people familiar with the matter said.
A person who based on the details provided is Mr. Campanella sought to obtain masks from several sources and helped Mr. Romano create a document on the letterhead of one of Mr. Campanella’s companies, falsely claiming Performance Supply was authorized to sell 3M products, the complaint said.A person who based on the details provided is Mr. Campanella sought to obtain masks from several sources and helped Mr. Romano create a document on the letterhead of one of Mr. Campanella’s companies, falsely claiming Performance Supply was authorized to sell 3M products, the complaint said.
Mr. Campanella denied any role in the procurement deal on Monday, saying he had only put Mr. Romano in touch with a hedge fund that had masks. “I did not make any offerings or any documentation to offer anything to New York City,” he said. He did not respond to telephone messages on Tuesday after the criminal complaint was made public.Mr. Campanella denied any role in the procurement deal on Monday, saying he had only put Mr. Romano in touch with a hedge fund that had masks. “I did not make any offerings or any documentation to offer anything to New York City,” he said. He did not respond to telephone messages on Tuesday after the criminal complaint was made public.
“It was a lot of innuendo and accusations for something that never actually happened or transpired,” he said on Monday.“It was a lot of innuendo and accusations for something that never actually happened or transpired,” he said on Monday.
Alan Feuer contributed reporting.Alan Feuer contributed reporting.