Phoenix man charged in conspiracy to price gouge protective face masks

PHOENIX — A Phoenix man was one of two charged in a conspiracy to resell protective face masks at an inflated rate.

The Department of Defense announced Tuesday that William Young, Sr. will appear in federal court in Phoenix via teleconference to address allegations that he violated the Defense Production Act by conspiring with a California man to resell KN95 masks at a 50% markup.

In March and April, court filings allege that Young and Kent Bulloch sought investors for their plan to sell the respiratory masks to New York City residents for up to three times the purchase price.

In an effort to hide the alleged price gouging, Bulloch was said to have created an escrow agreement for an ostensible investor which falsely claimed a 10% maximum profit for the resold masks.

The purported investor was actually a federal law enforcement agent.

“As alleged, the defendants conspired to turn a huge profit from the urgent need for surgical masks in New York during the pandemic,” United States Attorney Richard P. Donoghue said.

“When the Attorney General said that those engaged in price gouging should expect a knock on the door, he meant it.”

President Donald Trump invoked the Defense Production Act via executive order on March 18, thereby prohibiting the sale of medical supplies and devices, deemed scarce by the Secretary of Health and Human Services, at inflated rates.

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