Mass. man charged with price gouging hospitals for N95 masks during early days of COVID-19 pandemic
A Norfolk man has agreed to plead guilty after being charged with price gouging hospitals for N95 masks at the start of the COVID-19 pandemic, according to federal investigators.
35-year-old Jason Colantuoni is facing one count of conspiracy to commit price gouging, violating the Defense Protection Act.
On March 11, 2020, Colantuoni and a longtime friend formed a company in Florida in response to the pandemic by accumulating N95 masks through various sources, according to court documents.
Federal investigators allege Colantuoni, his friend, and the company’s head of sales conspired to exploit and profit off of the critical need of hospital and healthcare workers for N95 masks, which were hard to come by at the time.
Before the pandemic, hospitals typically paid $0.44 to $0.70 per respirator. Colantuoni’s company allegedly charged hospitals as much as $11.95 per mask.
Through the company, federal investigators say Colantuoni and the two other persons involved sold 1,000 boxes of N95 masks. Each box allegedly contained 20 or 30 masks, with a weighted average price of $9.91 per mask.
According to charging documents, when confronted about the nefarious nature of their practices by a sales representative from the company, Colantuoni texted the rep, his friend, and the company’s head of sales saying, “Price gouging is open for interpretation. And isn’t a crime lol. It’s a civil fine.”
The charge of conspiracy to commit price gouging in violation of the Defense Production Act provides for a sentence of up to one year in prison, up to one year of supervised release, and a fine of up to $10,000.
A plea hearing for Colantuoni has not been set.
This is a developing story. Check back for updates as more information becomes available.
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