United States Attorney Matthew Schneider Provides Coronavirus Prosecution Guide to State and Local Law Enforcement

Securities fraud where the price of a stock is pumped with a false claim of a test, preventative, or cure for the COVID-19 virus.

Securities Fraud

15 U.S.C. § 78j(b)

Securities and Commodities Fraud

18 U.S.C. § 1348

Criminalizes fraud in connection with registered securities.

Fraudulently obtaining benefits issued in response to the COVID-19 epidemic.

Fraud against the United States

18 U.S.C. § 1031

Emergency Benefit Fraud

18 U.S.C. § 1040

Criminalizes fraud in any federal assistance program responsive to the COVID-19 epidemic. 

The benefit must be issued in connection with a federally declared disaster. The President has declared the COVID-19 epidemic a Stafford Act disaster. 

Disseminating false information about use of the COVID-19 virus as a biological weapon

Hoaxes about the use of biologic weapons

18 U.S.C. § 1038

Criminalizes credible hoaxes about using the COVID-19 virus as a biologic weapon.

Persons lying to obtain medication referenced during the COVID-19 epidemic.

False Statements Relating to Health Care

18 U.S.C. § 1035

For example, a person presenting with fake symptoms to obtain hydroxychloroquine.

Fraud schemes based on the COVID-19 epidemic that make use of an access device, a financial institution, the mail or wires.

Access Device Fraud

18 U.S.C. § 1029

Mail Fraud

18 U.S.C. § 1341

Wire Fraud

18 U.S.C. § 1343

Bank Fraud

18 U.S.C. § 1344

If offender used, produced or trafficked in counterfeit or unauthorized devices (credit cards, passwords, etc.).

If offender used the U.S. Mail or a private/commercial carrier to send anything in furtherance of a fraud scheme.

If offender used a wire communication (phone call, fax, email, etc.) to transmit anything in furtherance of a fraud scheme.

If offender executed a scheme to defraud a financial institution or to fraudulently obtain money from a financial institution.

HOARDING, COUNTERFEIT GOODS, THEFT, AND SCAMS

Hoarding and/or price gouging items designated essential for combatting the COVID-19 epidemic.

Hoarding/Price Gouging of Designated Scarce Materials

50 U.S.C. §§ 4512, 4513

Makes it a crime to accumulate designated essential items in excess of reasonable needs, or for the purpose of selling in excess of prevailing market rates.

Selling stolen health supplies.

Sale/Interstate Transportation of Stolen Goods

18 U.S.C. § 2314/2315

For example, selling protective items that were stolen in another state or country.

Using someone else’s identity to obtain a benefit issued in connection with the COVID-19 epidemic.

Identity Theft

18 U.S.C. § 1028(a)(7)

Aggravated Identity Theft

18 U.S.C. § 1028A

If offender used another person’s identity during a violation of federal law or a state felony.

If offender used another person’s identity during the course of an enumerated felony (18 U.S.C. § 1028A(c)).

Offering counterfeit goods, services or drugs to combat the COVID-19 virus.

Trafficking in counterfeit goods or services

18 U.S.C. § 2320

For example, merchant selling N-95 masks purporting them to be manufactured by 3M when they are not authentic N-95 masks.

Introduction of fake cure/adulterated drug/unsafe dietary supplement to address the COVID-19 epidemic.

Food, Drug, and Cosmetic Act

21 U.S.C. § 331

The Food, Drug, and Cosmetic Act contains numerous restrictions/prohibitions on the sale of misbranded or adulterated food, drugs, or devices, and bans the introduction of unsafe supplements.

VIOLENT CRIME

Acts of violence against persons of Asian descent

Hate Crime Acts

18 U.S.C. § 249

Criminalizes injuring or using a weapon against a person because of their actual or perceived race or national origin.

Purposefully infecting people with the COVID-19 virus

Transfer of a Biological Weapon

18 U.S.C. § 175

Use of Weapons of Mass Destruction

18 U.S.C. § 2332a

Criminalizes the transfer of a biologic agent for use as a weapon.

Includes use of a weapon involving a biological agent.

Threats against public officials on account of their stance regarding the COVID-19 virus.

Threatening or Assaulting a Federal Official

18 U.S.C. § 115

Interstate Threatening Communications

18 U.S.C. § 875

Mailing threatening communications

18 U.S.C. § 876

Applies only to threats against federal officials. For example, a person threatens a federal government employee because they do not like a mandated shelter-in-place order.

Applies to threats made in interstate commerce, i.e., from one state to another. Could apply to internet threats made from one Michigan individual to another, because of how internet traffic is routed.

Applies to threats made using the U.S. mail, even those that are wholly within the State of Michigan.

Threats to infect people with the COVID-19 virus.

Interstate Threatening Communications

18 U.S.C. § 875

Threatening to Use a Weapon of Mass Destruction

18 U.S.C. § 2332a

Applies to threats made in interstate commerce, i.e., from one state to another. Could apply to internet threats made from one Michigan individual to another, because of how internet traffic is routed.

Includes threats to use a weapon involving a biological agent.

Department of Justice
Office of the U.S. Attorney
Eastern District of Michigan

Source: Justice.gov