Tampa, Florida - A federal court in Florida permanently enjoined last week three residents of Vietnam from operating a pandemic-related scam that targeted American consumers, the Department of Justice announced.
In a complaint filed in August 2020 in the U.S. District Court for the Middle District of Florida, the government alleged that Thu Phan Dinh, Tran Khanh and Nguyen Duy Toan engaged in a wire fraud scheme designed to profit from the COVID-19 pandemic. According to the complaint, the defendants operated more than 300 websites that fraudulently purported to sell products in the United States that became scarce during the pandemic, including hand sanitizer and disinfectant wipes. Thousands of victims in all 50 states paid for items marketed through the websites, but received nothing. The complaint alleged that the defendants set up hundreds of email accounts and accounts with a U.S.-based payment processor to carry out the scheme and keep it hidden from law enforcement. The defendants also allegedly listed fraudulent contact addresses and phone numbers on the websites, which caused unaffiliated individuals and businesses in the United States to receive numerous complaint calls from victims who had been defrauded by the scheme.
After receiving information from American law enforcement, Vietnamese authorities conducted an investigation and arrested the defendants on local charges.
“Scams that take advantage of the global pandemic to prey on American consumers are particularly egregious,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to working with law enforcement partners in the United States and around the globe to stop anyone who would try to profit through this kind of conduct.”
“The final injunction entered in this civil case sends a strong message of our district’s commitment to ensuring that fraudulent, predatory practices will be confronted in this critically important area,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “We thank our partners at the Department of Justice’s Consumer Protection Branch, the Department of Homeland Security and Vietnamese law enforcement who assisted us throughout this effort.”
“HSI works tirelessly to disrupt and dismantle criminal networks around the world who are exploiting the global pandemic for their own personal financial gain,” said Special Agent in Charge John A. Condon of Homeland Security Investigations (HSI) Tampa. “This permanent injunction is the final step in ensuring these defendants can no longer take advantage of people.”
The civil enforcement action, filed in U.S. District Court in Tampa, Florida, is part of the Justice Department’s ongoing efforts to detect, investigate, and prosecute illegal conduct related to the pandemic. U.S. District Judge Kathryn Kimball Mizelle granted the government’s motion for a default judgment and issued the permanent injunction, which extends a preliminary injunction that halted defendants’ scam and shut down the fraudulent websites.
The action was brought based on an investigation conducted by U.S. Immigration and Customs Enforcement’s HSI, in coordination with the Vietnam Ministry of Public Security, Department of Foreign Relations and Hanoi Police.
The government was represented by Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida and Trial Attorney Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch.