LI 'Mask Man' Hoarded, Price Gouged N95 Masks: Feds
LONG ISLAND, NY — A Long Island man and New York City pharmacist dubbed the “Mask Man” was arrested in connection with the hoarding and price gouging of thousands of N95 masks during the coronavirus pandemic, United States Department of Justice Southern District of New York officials announced Tuesday.
Richard Schirripa, 66, of Fort Salonga, violated the Defense Production Act, lied to law enforcement, engaged in health care fraud and committed aggravated identity theft, officials said. Schirripa surrendered Tuesday and is scheduled to appear in Manhattan federal court.
“As alleged, Richard Schirripa exploited an unprecedented crisis to engage in profiteering,” Manhattan U.S. Attorney Geoffrey S. Berman said in a news release.
Schirripa spent more than $200,000 on N95 masks and then sold them at inflated prices, charging customers up to 50 percent more than he paid to get the masks, Berman said.
During a sale to an undercover officer, Schirripa said, “I feel like a drug dealer,” according to Berman.
Schirripa committed several additional crimes, including defrauding Medicare and Medicaid, and exploiting the personal information of his pharmacy’s customers to fill prescriptions, Berman said.
Schirripa owned Madison Avenue Pharmacy on Madison Avenue between East 97th and 98th streets. Federal agents with the Department of Homeland Security launched an investigation into Schirripa after receiving a tip in April that he had a stockpile of N95 masks, according to court documents.
“As alleged, Mr. Schirripa chose to amass a stockpile of [personal protective equipment], specifically N95 masks, which were desperately needed for the safety of front-line workers,” said Philip R. Bartlett, inspector in charge of the New York office of the U.S. Postal Inspection Service. “He then allegedly used this crisis to jack up the price of this equipment. Thankfully, the ‘mask man’ has been unmasked by law enforcement and brought to justice for his alleged greedy crimes.”
Between February and April 8, Schirripa bought approximately $200,000 worth of N95 masks, officials said. The Defense Production Act was invoked March 25, making it a crime to hoard or price gouge equipment, including the types of masks Schirripa had, the DOJ said. Schirripa admitted to law enforcement he was aware of the DPA and its restrictions on price gouging and hoarding, officials said.
However, in the two weeks following March 25, the pharmacist continued adding to his stockpile by buying thousands of additional N95 masks and then charged his customers inflated prices in 50 sales that resulted in roughly $50,000 in revenue, officials said. Schirripa charged up to $25 per mask that he purchased for $20 and that generally costs $1.27, according to 3M, the mask manufacturer, officials said. He also purchased a $10 model of the masks and repeatedly resold them for $15 each, the DOJ said.
His customers spanned eight states and included funeral homes and doctors, officials said. Agents recovered roughly 6,660 masks from Schirripa, officials said.
During a recorded call with an undercover agent, officials claimed Schirripa said, “We’re in a time of emergency and shortage. When you have something no one else has, it’s not a high price.”
In an April 2 text message to a potential customer, Schirripa bragged that he “saw it coming” and the “good thing is no one has them,” referring to the masks, officials said.
In January and February, the pharmacist lied to the Drug Enforcement Administration, officials said. Each time, Schirripa said that as part of the recent closure of his New York City pharmacy, he transferred, sold or destroyed all controlled substances, officials said. Instead, the pharmacist retained thousands of controlled substance pills and patches, including fentanyl, oxycodone, and oxymorphone, officials said. All substances were recovered from a safe in Schirripa’s home, officials said.
Following an April 2020 search warrant execution by agents, Schirripa acknowledged the controlled substances were from his pharmacy and he needed to destroy them, officials said. There were nearly 4,000 pills and patches overall, officials said.
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Schirripa billed Medicare and Medicaid for the controlled substance prescriptions and lied that the prescriptions were for patients of his pharmacy, officials said. The prescriptions were not for his pharmacy clientele, officials said, and Schirripa possessed the prescriptions at his Fort Salonga home, officials said. The pharmacist used the personal identifying information of his business’ patients without their authorization, officials said.