SACRAMENTO, Calif. – A major California labor union that claimed to have discovered a stockpile of 39 million masks for health care workers fighting the coronavirus was duped in an elaborate scam uncovered by FBI investigators, according to a newspaper report Sunday.
Investigators stumbled onto the scheme while looking into whether they could intercept the masks for the Federal Emergency Management Agency under the Defense Production Act, the U.S. attorney’s office said Friday.
The federal government has been quietly seizing supplies across the country as the outbreak spreads. But in this case, there was no warehouse, and there were no masks to seize, the Los Angeles Times reported.
U.S. Attorney Scott Brady told the Times that investigators tracked the tip back to a Pittsburgh businessman, who said he had been working with the Service Employees International Union-United Healthcare Workers West to secure millions of masks.
The businessman had been using WhatsApp to connect with a broker in Australia and a supplier in Kuwait, who are both now the target of a federal investigation, Brady said.
The union, known as SEIU, and the Pittsburgh businessman are not under investigation and both appear to be among a string of middlemen who were fooled, Brady said.