HOLLAND (WHTC-AM/FM) — Muskegon resident Rodney L. Stevenson II, 24, is in hot water with federal authorities.
Stevenson, arrested over the weekend, faces wire fraud charges on suspicion of selling online N95 masks, which he never had, to victims in California’s Bay area.
U.S. Department of Justice authorities say Stevenson charged up to $450 for orders of between four and 15 masks.
In a joint statement. the United States Attorney’s Office for the Northern District of California and Grand Rapids, U.S. Postal Inspection Service in San Francisco and Detroit Division, and the FBI announced Stevenson faces charges of wire fraud for allegedly operatiing an e-commerce site that allegedly scammed several customers into paying for N95 masks that they never received.
“Hospitals, healthcare providers and everyday people are understandably anxious to obtainN95 masks, N99 filters and other PPE,” said U.S. Attorney Anderson. “The criminal element is always ready to prey on fear and uncertainty, and it is all too easy to lie over the internet. While sheltering in place, Americans are shopping on the internet like never before. The complaint alleges a consumer’s nightmare of fake webpages and false promises.”After preliminary hearings here in West Michigan, Stevenson will got to Califonia to face charges there.
“One of the core tenets of the U.S. Postal Inspection Service’s mission is to support andprotect customers of the U.S. Postal Service. Not only does that mean investigating and taking action against such exploitative behavior as alleged in this case, but also educating consumers how to be proactive in protecting themselves”, said AIC Felicia George. “We urge citizens to do their due diligence when dealing with an unknown business or entity online, and if they believe they have been a victim of fraud, report it to us immediately at www.uspis.gov so that we can take the appropriate action.”
FBI officials called Stevenson’s alleged behavior “reprehensible,” adding that it is never proper to over-inflate prices, espcially for much-needed safety equipment.
According to the complaint, Stevenson controlled EM General, a Michigan limited-liability company created in September, 2019. EM General operated a website that purported to sell an available inventory of “Anti-Viral N95” respirator masks. An N95 respirator mask is a particulate-filtering facepiece respirator that meets the U.S. National Institute for Occupational Safety and Health N95 standard of air filtration. N95 masks cover the user’s nose and mouth and are required to filter at least 95% of airborne particles.
The complaint further alleges EM General, through its website, falsely claimed to have N95 respirator masks “in stock” and available for sale and shipment during the shortage caused by the COVID-19 pandemic. Based on these and other representations, customers bought masks from the website, sometimes paying EM General more than $40 or more per mask. Stevenson is alleged to have taken several steps to fraudulently make EM General appear to be a legitimate company.
Evidence indicates Stevenson invented a fictional Chief Executive Officer, “Mike Thomas,” from whom fraudulent emails were sent, as well as several other fake officers or employees of the company. He also allegedly used stock photographs from the internet to create a page depicting the fake professional management staff. After customers made their first purchase, the defendant offered additional masks to those customers at discounted prices.
The complaint describes how four victims paid for, but did not receive, N95-compliantmasks. Three of the four victims live in the San Francisco Bay Area, including one hospitalemployee. The complaintincludes follow-up emails from EM General to customersin which false excuses about supply and shipping issues were made. Three of the four customers in the complaint never received the products at all despite multiple clailms that the masks had been shipped. The fourth customer paid more-than $400 on March 2, 2020, for N95 masks represented to be “in stock,” and, after raising several complaints, on March 27, 2020, received cheaply made fabric masks. The masks, delivered in a white envelope with no return address, did not comply with the N95 standard that EM General purportedly sold.
Stevenson is charged with wire fraud. If convicted, he faces up to 30 years in prison,followed by five years of court supervision, and a fine of up to $1 million.
Stevenson was arrested at his home in Muskegon, and has appeared before the U.S. District Court for the Western District of Michigan in Grand Rapids. His next court date has not yet been scheduled.
