A disgraced Staten Island businessman faces up to 20 years in prison for a pandemic-era fraud tied to sales of personal protective equipment (PPE).

Kevin Jay Lipsitz, 62, pleaded guilty in federal court in New York to charges of mail fraud, an admission that also potentially carries a sentence of a fine up to $250,000 and restitution to victims.

Lipsitz’s guilty plea highlights the fraud attempts that have plagued would-be PPE buyers during the COVID-19 pandemic. Word of the scam comes as the PPE term “face masks” remained one the 10 most searched terms in ESP, ASI’s database of products from throughout the promo industry, in September. While the term ranking was down five spots from August, the top 10 position suggests there’s still demand for PPE from promo end-buyers. As such, it’s pivotal that distributors and suppliers order PPE only from viable, well-vetted sources to avoid getting scammed, industry leaders have said.

According to federal investigators and prosecutors, Lipsitz engaged in flagrant price-gouging on PPE, failed to deliver PPE to hundreds of customers in promised timeframes, and provided thousands of customers with false same-day shipping confirmations, including tracking numbers, on their PPE orders in an effort to deceive those buyers.

Lipsitz advanced the fraud through his online storefront – SuperGoodDeals.com Inc (SGD). Between March 2020 and May 2020, as the first wave of the COVID-19 pandemic rose to fever pitch and PPE was scarce amid massive demand, Lipsitz acquired what authorities described as huge quantities of PPE.

As #COVID cases driven by the #DeltaVariant rise, so has demand for #PPE in the #promoproducts industry: https://t.co/XL6jnl89KB Interesting report from @JCorr_ASI @ASI_MBell @Melissa_ASI

— Chris Ruvo (@ChrisR_ASI) September 20, 2021

Hoarding surgical masks and N95 and KN95 masks, Lipsitz made false statements to thousands of customers regarding SGD’s inventory and ability to quickly fill and ship orders, including a “pay today” and “ship tomorrow” promise he routinely did not fulfill. His markups on the goods were exploitative, ranging from 150% to 500%, authorities said.

“As our nation was getting its initial glimpse into the COVID-19 Pandemic that was wreaking havoc on our communities and way of life, Kevin Lipsitz took the opportunity to capitalize and profit from people’s fears,” said Homeland Security Special Agent-in-Charge Peter Fitzhugh. “Lipsitz advertised and sold PPE at exorbitant prices to vulnerable people who were willing to do almost anything to keep themselves and families safe.”

The government’s case is being handled by the Office’s Business & Securities Fraud and International Narcotics & Money Laundering Sections. Assistant United States Attorneys Julia Nestor and Andrew Wang are in charge of the prosecution.