Georgia man arrested for allegedly defrauding Department of Veterans Affairs in coronavirus scheme

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The Defense Production Act, a law that controls the distribution of essential supplies in times of emergency, makes it unlawful to engage in price gouging.

In a phone call to a VA official on March 23, an unnamed individual, referred to as"Person B," solicited a purchase order on behalf of"Company A," a distributor, for millions of face masks produced by 3M, an essential domestic producer of personal protective equipment , according to a criminal complaint.

When an undercover VA inspector inquired with Company A about its supplier, Person B made a referral to Parris, under the auspices of a company called Encore Health Group. The criminal complaint alleges that Parris contacted the VA to explain how the supplies would be procured. He is accused of telling the agent that Encore Health"buys directly from 3M."

According to VA Special Agent Jeffrey Ferris, the purpose of the alleged scheme appears to have been an effort to"obtain large upfront payments for scarce PPE that Parris knows he cannot actually fully obtain or deliver." In convicted on the charges, Parris faces a potential maximum penalty of 20 years' imprisonment. He is currently in detention in Georgia awaiting extradition to the U.S. capital, where the criminal complaint was filed.

 

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