Milton Ayimadu has been arraigned on federal charges of hoarding and price gouging in violation of the Defense Production Act of 1950 (DPA). Ayimadu was charged by a criminal information. According to U.S. Attorney Pak, the charges, and other information presented in court: from early March 2020 to May 2020, during the COVID-19 global pandemic, Ayimadu engaged in hoarding and price gouging of more than 200,000 face masks in violation of the DPA. Ayimadu allegedly purchased more than 200,000 face masks from a foreign country for approximately $2.50 each and then re-sold them to American consumers, through his website, BabyPuuPu.com, for approximately $5.00 each—a markup of approximately 100 percent. During the two months in which Ayimadu sold face masks, he engaged in over 22,000 financial transactions. While Ayimadu priced his masks in excess of prevailing market prices to maximize his profits to the detriment of consumers desperate for personal protective equipment during the COVID-19 pandemic, manufacturers of authentic N95 masks continued selling face masks for the pre-pandemic price of under $2.00 per mask.
