East Michigan News

U.S. Attorney's Office for the Eastern District of Michigan issued the following announcement on March 31.

In response to the Coronavirus (COVID-19) pandemic, the United States Attorney’s Office for the Eastern District of Michigan is providing this Coronavirus Prosecution Guide to Michigan’s state and local law enforcement.  The purpose of the Guide is to help law enforcement identify cases for possible federal civil action or criminal prosecution. The Guide provides a brief description of the type of conduct being seen around the country to take advantage of the opportunity created by the pandemic.  Law enforcement officers who believe they may have a case for federal civil enforcement or criminal prosecution should contact the COVID-19 Fraud Coordinator, Assistant United States Attorney John Neal, at 313-226-9644.

This Guide is a supplement to – and not a replacement of – state and local prosecutions.  “The Michigan Attorney General and our 83 County Prosecuting Attorneys are on the front lines with us, battling back against criminals who are profiting off of the Coronavirus pandemic,” said United States Attorney Matthew Schneider.  “Together with our state and local partners, we use every weapon in our arsenals to fight criminals who use this pandemic to take advantage of the people of Michigan.”

In addition to investigating and prosecuting criminal offenses, the United States Attorney’s Office will utilize the Antifraud Injunction Act (18 U.S.C. § 1345), which allows the United States to commence a civil action to enjoin a violation of the federal mail fraud, wire fraud, health care fraud, or fraud conspiracy statutes.

To date, the U.S. Attorney’s Offices across the country have received reports of individuals and businesses engaging in a wide range of fraudulent and criminal behavior, including:

• Robocalls making fraudulent offers to sell respirator masks with no intent of delivery;
• Fake COVID-19-related apps and websites that install malware or ransomware;
• Phishing emails asking for money or presenting malware;
• Social media scams fraudulently seeking donations or claiming to provide stimulus funds if the recipient enters his or her bank account number; 
• Sales of fake testing kits, cures, “immunity” pills, and protective equipment;
• Fraudulent offers for free COVID-19 testing in order to obtain Medicare beneficiary information that is used to submit false medical claims for unrelated, unnecessary, or fictitious testing or services;
• Prescription drug schemes involving the submission of medical claims for unnecessary antiretroviral treatments or other drugs that are marketed as purported cures for COVID- 19;
• Robberies of patients departing from hospitals or doctor offices;
• Threats of violence against mayors and other public officials;
• Threats to intentionally infect other people; and
• Hate crimes against people with Asian heritage.

Conduct	Federal Charge or Cause of Action	Explanation
FRAUD
Offering fraudulent tests, preventatives, cures for the COVID‑19 epidemic.	Sale of Fake drugs/cures 15 U.S.C. § 1263 Distribution of non-conforming consumer goods 15 U.S.C. § 2068	For example, online marketer advertising a supplement as a preventive remedy against the COVID-19 virus
Scam charities such as soliciting donations to provide PPE to those who need it to protect against the COVID-19 epidemic.	Email Fraud 18 U.S.C. § 1037 Mail Fraud 18 U.S.C. § 1341 Wire Fraud 18 U.S.C. § 1343	Such scams are likely to involve the use of the wires, telephone, internet, mail and/or a financial institution.
Providers who bill health care benefits program for excessive testing for COVID-19.	Health Care Fraud 18 U.S.C. § 1347	Medical providers conducting medically unnecessary testing or treatment.
Email phishing for benefit checks issued in response to the COVID-19 epidemic.	Email Fraud 18 U.S.C. § 1037	Criminalizes sending multiple, materially false, commercial emails, such as emails that are sent through an unauthorized computer, sent through a protected computer with the intent of hiding their origin, that contain a false header, or are sent from accounts with false registration information.
Fraudulent COVID-19 information websites that install ransomware when you click on them.	Computer Fraud 18 U.S.C. § 1030	A website that encourages users to click for COVID-19 virus information that then launches malware that infests consumer’s computer.

 

 

Securities fraud where the price of a stock is pumped with a false claim of a test, preventative, or cure for the COVID-19 virus.	Securities Fraud 15 U.S.C. § 78j(b) Securities and Commodities Fraud 18 U.S.C. § 1348	Criminalizes fraud in connection with registered securities.
Fraudulently obtaining benefits issued in response to the COVID-19 epidemic.	Fraud against the United States 18 U.S.C. § 1031 Emergency Benefit Fraud 18 U.S.C. § 1040	Criminalizes fraud in any federal assistance program responsive to the COVID-19 epidemic.   The benefit must be issued in connection with a federally declared disaster. The President has declared the COVID-19 epidemic a Stafford Act disaster.
Disseminating false information about use of the COVID-19 virus as a biological weapon	Hoaxes about the use of biologic weapons 18 U.S.C. § 1038	Criminalizes credible hoaxes about using the COVID-19 virus as a biologic weapon.
Persons lying to obtain medication referenced during the COVID-19 epidemic.	False Statements Relating to Health Care 18 U.S.C. § 1035	For example, a person presenting with fake symptoms to obtain hydroxychloroquine.
Fraud schemes based on the COVID-19 epidemic that make use of an access device, a financial institution, the mail or wires.	Access Device Fraud 18 U.S.C. § 1029     Mail Fraud 18 U.S.C. § 1341 Wire Fraud 18 U.S.C. § 1343 Bank Fraud 18 U.S.C. § 1344	If offender used, produced or trafficked in counterfeit or unauthorized devices (credit cards, passwords, etc.).   If offender used the U.S. Mail or a private/commercial carrier to send anything in furtherance of a fraud scheme.   If offender used a wire communication (phone call, fax, email, etc.) to transmit anything in furtherance of a fraud scheme.   If offender executed a scheme to defraud a financial institution or to fraudulently obtain money from a financial institution.
HOARDING, COUNTERFEIT GOODS, THEFT, AND SCAMS
Hoarding and/or price gouging items designated essential for combatting the COVID-19 epidemic.	Hoarding/Price Gouging of Designated Scarce Materials 50 U.S.C. §§ 4512, 4513	Makes it a crime to accumulate designated essential items in excess of reasonable needs, or for the purpose of selling in excess of prevailing market rates.
Selling stolen health supplies.	Sale/Interstate Transportation of Stolen Goods 18 U.S.C. § 2314/2315	For example, selling protective items that were stolen in another state or country.
Using someone else’s identity to obtain a benefit issued in connection with the COVID-19 epidemic.	Identity Theft 18 U.S.C. § 1028(a)(7) Aggravated Identity Theft 18 U.S.C. § 1028A	If offender used another person’s identity during a violation of federal law or a state felony.   If offender used another person’s identity during the course of an enumerated felony (18 U.S.C. § 1028A(c)).
Offering counterfeit goods, services or drugs to combat the COVID-19 virus.	Trafficking in counterfeit goods or services 18 U.S.C. § 2320	For example, merchant selling N-95 masks purporting them to be manufactured by 3M when they are not authentic N-95 masks.
Introduction of fake cure/adulterated drug/unsafe dietary supplement to address the COVID-19 epidemic.	Food, Drug, and Cosmetic Act 21 U.S.C. § 331	The Food, Drug, and Cosmetic Act contains numerous restrictions/prohibitions on the sale of misbranded or adulterated food, drugs, or devices, and bans the introduction of unsafe supplements.
VIOLENT CRIME
Acts of violence against persons of Asian descent	Hate Crime Acts 18 U.S.C. § 249	Criminalizes injuring or using a weapon against a person because of their actual or perceived race or national origin.
Purposefully infecting people with the COVID-19 virus	Transfer of a Biological Weapon 18 U.S.C. § 175   Use of Weapons of Mass Destruction 18 U.S.C. § 2332a	Criminalizes the transfer of a biologic agent for use as a weapon.     Includes use of a weapon involving a biological agent.
Threats against public officials on account of their stance regarding the COVID-19 virus.	Threatening or Assaulting a Federal Official 18 U.S.C. § 115 Interstate Threatening Communications 18 U.S.C. § 875   Mailing threatening communications 18 U.S.C. § 876	Applies only to threats against federal officials. For example, a person threatens a federal government employee because they do not like a mandated shelter-in-place order.   Applies to threats made in interstate commerce, i.e., from one state to another. Could apply to internet threats made from one Michigan individual to another, because of how internet traffic is routed.   Applies to threats made using the U.S. mail, even those that are wholly within the State of Michigan.
Threats to infect people with the COVID-19 virus.	Interstate Threatening Communications 18 U.S.C. § 875   Threatening to Use a Weapon of Mass Destruction 18 U.S.C. § 2332a	Applies to threats made in interstate commerce, i.e., from one state to another. Could apply to internet threats made from one Michigan individual to another, because of how internet traffic is routed.   Includes threats to use a weapon involving a biological agent.

Original source can be found here.