Bean Town Times

A Florida-based company, JDM Supply LLC, along with two individuals associated with it, have admitted to charges related to the sale of misbranded facemasks during the early stages of the COVID-19 pandemic. The company and individuals were accused of shipping masks falsely labeled as N95 respirators and engaging in price gouging targeting hospitals.

JDM Supply LLC pleaded guilty to a conspiracy charge under the Federal Food, Drug, and Cosmetic Act for introducing misbranded devices into interstate commerce with fraudulent intent. Daniel Motha from Miami, Florida, and Jeffrey Motha from Norfolk, Massachusetts, also admitted guilt to introducing misbranded devices into interstate commerce and conspiring to commit price gouging in violation of the Defense Production Act. Sentencing is set for March 2025 by U.S. District Court Judge Myong J. Joun.

The case involves activities dating back to spring 2020 when JDM Supply collaborated with another entity referred to as “Company 1” to distribute masks falsely marketed as National Institute of Occupational Safety and Health (NIOSH)-approved N95 respirators. One hospital purchased these masks but returned them upon discovering they were not genuine N95s.

In August 2020, a sample tested by a NIOSH lab showed filtration efficiency between 83.94% and 93.24%, which is below the required 95% standard for N95 respirators.

Daniel and Jeff Motha reportedly used JDM Supply LLC's platform to exploit hospitals' urgent need for protective gear during the pandemic by acquiring masks from various sources and selling them at inflated prices in Massachusetts and other locations.

The legal consequences for JDM include potential fines up to $500,000 or double the pecuniary gain or loss involved in their offense. Individuals face up to one year in prison along with possible supervised release terms and financial penalties under different charges related to this case.

The announcement was made by Acting United States Attorney Joshua S. Levy alongside other federal officials including Ketty Larco-Ward from the U.S. Postal Inspection Service; Fernando McMillan from FDA's Office of Criminal Investigations; Christopher Algieri from Veterans Affairs’ Office of Inspector General; FBI's Boston Division representative Jodi Cohen; and Michael J. Krol from Homeland Security Investigations New England.

Assistant U.S. Attorneys Bill Brady and Howard Locker are managing prosecution efforts within this investigation connected with broader initiatives such as Attorney General’s COVID-19 Fraud Enforcement Task Force established on May 17, 2021.

For further information regarding DOJ’s response against pandemic-related fraud or reporting attempted COVID-19 fraud incidents can visit official websites provided or contact via designated hotline numbers.