Man stole $2.4 million in fraudulent N95 masks scheme, feds say

A Washington D.C. man and his two firms should return over $2.4 million to victims he deceived as a part of a fraudulent N95 masks scheme, a federal courtroom decide ordered.

Alex St. James Railey Cisco had two companies known as US FED Group, LLC, and Trade-Backed Equity, LLC, that he pretended have been approved distributors of N95 masks, based on a information launch from the U.S. Attorney’s Office within the Northern District of Iowa.

In October 2020, as circumstances of COVID-19 surged within the United States, Cisco contracted with a first-aid manufacturing firm that needed to purchase a million 3M/N95 masks, based on the discharge.

The U.S. was within the midst of a scarcity of non-public protecting gear and N95 masks have been in excessive demand, based on the information launch.

The California-based first-aid firm despatched Cisco $2.4 million however by no means obtained the masks, based on the discharge.

“The court found Railey Cisco received the money even though he knew that he, US FED Group, LLC and Trade-Backed Equity, LLC were unable and would be unable to fulfill any order for 3M masks,” the information launch says.

Another firm additionally tried to buy masks from Cisco in September 2020 for $250,000 however by no means obtained the merchandise.

On Friday, May 13, U.S. District Court Judge C.J. Williams ordered Cisco to return the cash to his victims and chorus from partaking in fraud or utilizing his companies to wire fraudulent cash.

Madeleine List is a McClatchy National Real-Time reporter. She has reported for the Cape Cod Times and the Providence Journal.

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