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Attorney General William Barris pictured at a coronavirus task force meeting at the White House on March 23. The Justice Department is looking to crack down on coronavirus-related fraud.; Credit: Alex Brandon/AP

The coronavirus pandemic has brought out the good side of many Americans, but certainly not all Americans. Officials say that fraud related to COVID-19 — like hoarding equipment, price gouging and hawking fake treatments — are spreading as the country wrestles with the outbreak.

"It's a perfect ecosystem for somebody like a fraudster to operate in," said Craig Carpenito, the U.S. attorney for New Jersey and the head of the Justice Department's COVID-19 price gouging and hoarding task force.

"People want to believe that there's a magic pill that they can take or that if they buy a certain kind of mask or a certain kind of protective gear that it's going to protect them and their families," he said. "That creates opportunities for the types of people that prey upon scared people. They prey upon their fear."

A month ago, Attorney General William Barr instructed federal prosecutors around the country to aggressively investigate and prosecute scams and other crimes related to the COVID-19 pandemic. He also created the price gouging and hoarding task force and put Carpenito in charge of it.

From that perch, Carpenito has one of the best views of virus-related crime nationwide.

"Instead of seeing that tremendous support from all aspects of society, we're still seeing that sliver, that that dark underbelly, that small percentage of folks who instead of putting the interests of the country and support for those medical professionals that are putting themselves at risk in the forefront, they're finding ways to try and take advantage of this situation and illegally profiteer from it," he said. "And it's despicable."

The most prevalent kind of fraud that federal authorities are seeing at this point, he and others say, is tied to personal protective equipment like N95 masks, gloves or face shields.

In one notable case, prosecutors brought charges against a Georgia man, Christopher Parris, for allegedly trying to sell $750 million worth of masks and other protective equipment to the Department of Veterans Affairs but with a sizable advance payment.

The problem, prosecutors say, is the masks and other items didn't exist, at least not in the quantities Parris was offering.

Steven Merrill, the head of the FBI's financial crimes section, says the bureau refers to these sorts of operations as advance-fee schemes.

"We're getting many complaints that different entities are entering into these agreements, paying money upfront, sometimes hundreds of millions of dollars, and may or may not get any masks or other PPE ordered at all," Merrill said. "So our guidance to the public is to please be wary of these frauds and solicitations."

Other problems, such as hoarding and price gouging, can arise even when the medical gear does exist.

The FBI is trying to identify individuals who are stockpiling protective equipment and trying to sell it at exorbitant markups, sometimes 40 to 70 times the value, Merrill said.

A few weeks ago, the FBI seized nearly 1 million respirator masks, gloves and other medical gear from a Brooklyn man who was allegedly stockpiling them and selling them to nurses and doctors at what officials say was around a 700% markup.

The man, Baruch Feldheim, has been charged with lying to the FBI about price gouging. He's also been charged with allegedly assaulting a federal officer after he coughed on agents and claimed he had COVID-19.

The confiscated items, meanwhile, have been distributed to medical workers in the New York area.

Carpenito said the Justice Department has more than 100 investigations open into price gouging. It has hundreds more, he said, into other crimes tied to the pandemic, including fake treatments and cures.

In one case out of California, prosecutors charged a man who was allegedly soliciting large investments for what he claimed was a cure for COVID-19.

"He was doing so by broadcasting this scheme via, notably, YouTube, where had thousands of hits and views," Merrill said.

In a separate case out of Florida last week, the Justice Department got a court order to stop a Florida church from selling on its website an industrial bleach that was being marketed as a miracle treatment for the virus.

To be clear, the Centers for Disease Control and Prevention says there is no cure at this point for the virus.

More than a month into this crisis, there's no sense COVID-related crime is going to slow down.

In fact, Carpenito and Merrill say that with the massive $2 trillion economic relief package beginning to be doled out, they expect to see even more fraud in the weeks and months ahead.

"What we're worried about is that not only do we have these existing conditions, but we are awaiting — like everybody in the country — the arrival of $2 trillion to hit the streets," Merrill said. "And anytime there's that much money out there, you can just multiply the amount of frauds that are going to take place. So we're preparing for many more complaints to come in and new schemes to arrive on a daily basis."

This content is from Southern California Public Radio. View the original story at SCPR.org.

Deputy Chief Patricia Cassidy of the Jersey City Police Department has blood drawn to test for coronavirus antibodies in Jersey City, N.J., on Monday.; Credit: Seth Wenig/AP

The Food and Drug Administration is stiffening its rules to counteract what some have called a Wild West of antibody testing for the coronavirus.

These tests are designed to identify people who have been previously exposed to the virus. The FDA said more than 250 developers have been bringing products to the market in the past few weeks.

In a rush to make antibody tests available as quickly as possible, the FDA had set a low standard for these tests. Manufacturers were supposed to submit their own information about the accuracy of their wares, but the agency had no standards for what would be acceptable. Companies weren't allowed to claim the tests were authorized by the FDA, under initial guidance issued in mid-March.

Now the FDA is telling manufacturers that if they want their tests to remain on the market, they must meet minimum quality standards and submit a request for emergency use authorization, a temporary route to market for unapproved products when others aren't available. The EUA involves a lower standard than the usual FDA clearance or approval.

The FDA said 12 manufacturers have already opted to request EUA's for their products. More than 100 other producers have been talking to the agency about using this process, said FDA Commissioner Stephen Hahn. He spoke on a press call Monday. Companies have 10 days to submit that request.

"Our expectation is that those who can't [meet the new standard] will withdraw their products from the market and we will be working with them to help them do that," he said.

These tests are now so widespread that people can order them from lab giants Quest or LabCorp. The tests can cost more than $100. Though the FDA's original guidance calls for these tests to be run by a certified lab, the kits themselves are simple to use and have been readily available.

Despite the enthusiasm surrounding these tests, they have substantial limitations. Though people who test positive for antibodies have in most cases been exposed to the coronavirus, scientists don't know whether that means those people are actually immune from the coronavirus, and if so for how long.

"Whether this is the ticket for someone to go back to work [based solely on an antibody test result], my opinion on that would be no," Hahn said.

The tests may be more useful when combined with information from a standard coronavirus diagnostic test, or in someone who has symptoms, or if the results have been confirmed with a different antibody test. That "would dramatically increase the accuracy of those tests," said Jeffrey Shuren, director of the FDA's Center for Devices and Radiological Health

Antibodies are a potentially valuable research tool, and can be used to determine the prevalence of a disease in a population. In that circumstance, individual false results are less important. New York State used antibody tests to determine that about 20 percent of people in New York City have already been exposed to the coronavirus.

In California, researchers have attempted to measure the prevalence of the coronavirus in Los Angeles County and Santa Clara County in the Bay Area. Those unpublished results have garnered criticism because even a test that's more than 99 percent accurate can produce many false positive results when used to survey hundreds or thousands of people.

In the face of this criticism, the authors of the Santa Clara study have posted revised results acknowledging the high degree of uncertainty in their findings. Those findings haven't been peer-reviewed.

The emergency use authorization is only valid during the time of the national emergency. "Once the national emergency ends, the EUA authorizations end as well," Shuren said. Companies that want to keep marketing these tests will need to get them approved through the regular, more stringent FDA process.

FDA officials say they will continue to crack down on companies that falsely claim their tests are approved by the FDA, or that market them for home use, which isn't currently allowed.

You can contact NPR Science Correspondent Richard Harris at rharris@npr.org.

This content is from Southern California Public Radio. View the original story at SCPR.org.

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