Never Waste a Crisis

Close-up Of A Businessperson's Hand Giving Cheque To Colleague At Workplace

In early 2020, severe shortages of personal protective equipment (PPE) such as N95 masks, gloves, and gowns occurred when the COVID-19 virus created a very large and immediate demand. While manufacturers tried to boost production to increase supplies, fraudsters jumped in and created scams to boost their profits. (Did you know that the fraudster motto is ‘Never waste a crisis’?)

A Philadelphia man, Gauravjit Singh, 26, was one of those enterprising criminals who devised a scheme involving 10 victims who sent him more than $2 million to purchase PPE. His multiple victims entered into an agreement to pay approximately $7.1 million in exchange for about 1.5 million medical gowns, which were to be sourced to the City of New York. The victims wired Singh their part through his company GHS Solutions, LLC. (But the gowns never got delivered. Does this surprise you?)

Instead of fulfilling his promise to provide more than a million medical gowns to a medical community that was desperate for supplies, Singh spent his investors’ money on personal expenses such as online gaming. (Because it’s not a big deal to lose money that’s not yours.) He also transferred some of the funds to his brokerage account. (For safekeeping, I’m sure.)

The Philadelphian pleaded guilty to wire fraud and for orchestrating a $2 million PPE fraud scheme. When sentenced, he could get up to 20 years in prison and a $250,000 fine. (It’s safe to say that this unscrupulous man is having his own personal crisis and there’s no amount of PPE that could ever protect him from his impending sentence.)

Today’s Fraud of the Day comes from an article, “Philadelphia Man Admits To $2 Million Protective Equipment Scheme,” dated September 22, 2021.

PHILADELPHIA (AP) — A Philadelphia man admitted Wednesday that he orchestrated a $2 million scheme in which he falsely promised to sell personal protective equipment.

Gauravjit Singh, 26, pleaded guilty to a wire fraud charge, according to federal prosecutors in New Jersey. He now faces up to 20 years in prison when he’s sentenced Feb. 10.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.