CVW continues to warn of scams that are targeting COVID-19 concerns. There are criminals who are taking advantage of the fear this pandemic brings to many.
“The Dept. of Justice is remaining vigilant in detecting, investigating and prosecuting wrongdoing related to the crisis,” according to an FBI statement.
“The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated,” stated Attorney General Barr.
Advice from the FBI:
Be aware that criminals are attempting to exploit COVID-19 worldwide through a variety of scams. There have been reports of:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share virus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
Criminals will likely continue to use new methods to exploit COVID-19 worldwide. If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report it without leaving your home through a number of platforms. Visit the:
- National Center for Disaster Fraudhotline at (866) 720-5721 or via email at disaster@leo.gov
- Report it to the FBI at fbi.gov
- If it’s a cyber scam, submit your complaint through https://www.ic3.gov/default.aspx
A Southern California man was arrested last night on a federal fraud charge alleging he solicited investments in a company he claimed would be used to market pills that would prevent coronavirus infections and an injectable cure for those already suffering from COVID-19.
Keith Lawrence Middlebrook, 53, is charged with one count of attempted wire fraud, a felony offense that carries a statutory maximum penalty of 20 years in federal prison. Middlebrook completed his court appearance with U.S. Magistrate Judge John E. McDermott continued his detention hearing until Friday afternoon. He remains in custody until then. The decision of bond will be made tomorrow.
More information on Keith Middlebrook below.
Coronavirus Update
Los Angeles County reports 1,216 cases and 21 deaths as of today, Thursday, at noon. Glendale has 23 cases, La Cañada Flintridge 6, Sunland 1 and Tujunga 2.
As of today, at USC Verdugo Hills Hospital:
Patients with confirmed COVID-19 – 8 currently in the hospital, 9 were sent home and two were transferred.
Patients with negative COVID-19 test – 8 currently in the hospital, 49 sent home
Patients with pending COVID-19 test – 4 currently in the hospital, 16 sent home
The Pacific Southwest Region of the Forest Service, in response to the recent statewide shelter-in-place order issued by the governor of California, is joining the cause to aggressively mitigate the spread of COVID-19 by closing developed recreation facilities on our National Forests statewide.
“Developed recreation sites” refers to designated recreational use areas designed to facilitate public use. Information on individual recreation sites and opportunities are available from local National Forests.
Closures of developed recreation facilities are being put in place until at least April 30 in an attempt to avoid groups of people and promote social distancing of staying more than six feet apart.
While designated recreation sites will be closed, the general Forest area, including the extensive trail system, will remain open and available to the public. Hiking and walking outdoors are widely considered beneficial to maintaining one’s health. It is the intent of USDA Forest Service to maintain trail access to the extent practicable.
Please keep health, safety and the environment in mind when visiting National Forests. It is the personal responsibility of all visitors to ensure public safety and preventing further restrictions. Please consider whether your personal participation in outdoor recreation at this time would pose an unnecessary risk to others as we all work together to flatten the curve and slow the spread of COVID-19.
More Middlebrook Information
The complaint alleges that Middlebrook claimed to have personally developed a “patent-pending cure” and a treatment that prevents coronavirus infection, even though every major health authority has warned that there is no specific antiviral treatment for COVID-19 and no vaccine to prevent coronavirus infection.
Middlebrook was arrested during a meeting in which he delivered pills – purportedly the “treatment” that prevents coronavirus infection – to an undercover agent who was posing as an investor.
It is alleged that Middlebrook fraudulently solicited funds with promises of large profits for a company he called Quantum Prevention CV Inc. He also claimed he had already secured an investor, Earvin “Magic” Johnson.
That was not true, according to Johnson when he was interviewed by investigators.
Middlebrook allegedly sent a text to a witness who is cooperating with investigators stating that a patient who had tested positive for the coronavirus got up and walked out hours after getting “my injection.”
The text continued with promises of massive profits.
“During these difficult days, scams like this are using blatant lies to prey upon our fears and weaknesses,” said United States Attorney Nick Hanna. “While this may be the first federal criminal case in the nation stemming from the pandemic, it certainly will not be the last. I again am urging everyone to be extremely wary of outlandish medical claims and false promises of immense profits. And to those who perpetrate these schemes, know that federal authorities are out in force to protect all Americans, and we will move aggressively against anyone seeking to cheat the public during this critical time.”
“There’s a particular opportunistic cruelty in seeking to profit based on the fear and helplessness of others,” said Paul Delacourt, the assistant director in charge of the FBI’s Los Angeles Field Office. “As the country reacts to the current crisis, and while many suffer from losing a loved one or losing their livelihood, the last thing Americans need are con-artists who hawk miracle cures they know are not tested, guaranteed, nor approved. The FBI is using a variety of tools to identify anyone who exploits the current crisis through investment frauds or a variety of cyber schemes – and is proactively warning investors to thoroughly research any salesperson or any product claiming to save lives, before losing their money, or creating false hope.”
In a video posted eight days ago to his Instagram account, Middlebrook stated that he had created the cure for COVID-19, and he showed viewers a syringe with a clear liquid and described how his cure worked, according to the affidavit. Accompanying the video is text that reads, in part: Yes I have Developed the Cure for the CoronaVirus COVID-19. After 6 Weeks of Intense Focus and Development (and very little sleep). I am currently going into Mass Production. … The CDC, WHO and Mainstream Media have created a Pandemonium environment. To answer this (just because it’s what I do) I have created a CoronaVirus Prevention Pill” (After 3 Days of taking it the person is Immune to the Virus and STAYS immune as long as they continue taking it once a day it the morning) and also the COVID-19 Formula Vaccine Cure to Satisfy the Physiological and Phycological Need at large.
The affidavit states that as of March 24 the video had been viewed more than 633,000 times.
In another Instagram video that was viewed more than 1 million times over approximately three days, Middlebrook shows a pill he says prevents him from contracting COVID-19 and “states that if he took the pill and walked into the Staples Center filled with COVID-19 positive individuals, he could not contract the virus,” according to the criminal complaint.
The affidavit focuses on communications – both written and over the phone – between Middlebrook and two people he thought were potential investors, the cooperating witness and an undercover FBI agent. Middlebrook made a series of claims and promises to the undercover agent, including guaranteeing that a $300,000 investment would yield $30 million, a promise that was secured “by a current $10 billion offer from an unnamed buyer in Dubai,” according to the affidavit.
The ongoing investigation in this matter is being conducted by the FBI.
This case is being prosecuted by Assistant United States Attorneys Valerie Makarewicz and James Hughes of the Major Frauds Section.
