Mahwah Company Admits To Price Gouging KN95 Masks At COVID's Peak

Mahwah NJ

08 December, 2021

2:42 PM

Description

MAHWAH, NJ — A Bergen County company has admitted to price gouging KN95 masks during the height of the coronavirus pandemic, acting U.S. Attorney Rachael A. Honig announced. TSC Agency LLC, a logistics and freight forwarding company based in Mahwah, New Jersey, pleaded guilty to charges of price gouging in violation of the Defense Production Act. According to case documents, TSC Agency and two partners purchased 250,000 KN95 masks filtering face piece respirators from a foreign manufacturer in March 2020. TSC and one of those partners then sold 100,000 masks to a chain of New Jersey grocery stores at $5.25 per mask, a figure much higher than market price, and at a markup of more than 400 percent from its acquisition cost, documents show. Prior to the spread of COVID-19, TSC had no history of selling personal protective equipment, the U.S. Attorney said. A violation of the Defense Production Act carries a maximum fine of $200,000. Sentencing for TSC Agency is scheduled for April 13, 2022.