Winnetka business owner convicted for price gouging N95 masks during early days of the pandemic
A Winnetka business owner has been federally convicted of price gouging of N95 masks during the COVID-19 pandemic, marking the price up as high as 367% per mask.
According to a news release by the U.S. attorney’s office, Krikor Topouzian, 62, of Winnetka was convicted on June 29 in a federal bench trial before U.S. Magistrate Judge Jeffrey Cole for violation of the Defense Production Act. Topouzian is the owner and president of Skokie based Concord Health Supply.
Prosecutors said that from March to April 2020, Topouzian purchased 79,160 respirator masks, including N95 masks, for about $5.08 per mask. The masks were later sold for as much as $19.95 per mask, an approximate markup of 185% to 367% per mask.
The masks had been deemed as “scarce materials” under the DPA due to the COVID-19 pandemic.
Findings of Fact from the court outlined text messages where Topouzian spoke of how much profit he was making off the masks, estimating in a text message he was profiting anywhere from $50,000 to $80,000 a day. The document also states that several parties, including law enforcement, warned Topouzian about illegal price gouging to which he replied, “Who is going to report me?”
In a call from mid March outlined in the Findings of Fact, Topouzian said the amount he was selling the masks for was excessive and he should probably not be selling them for that price.
FBI agents spoke with Topouzian on April 6, 2020 and explained the illegality of purchasing the masks for profit sales. He was told by agents to comply with the law and they weren’t putting sellers on notice for mask prices over $12 a mask.
Documentation by the court also stated Topouzian asked a relative to have their friends write positive reviews about his company online to offset the negative ones that mentioned price gouging.
Topouzian faces up to one year in federal prison. His sentencing is scheduled for Oct 10, 2023.
