400 Percent Markup On COVID Masks Sold At NJ Grocery Stores

NEWARK, NJ — A New York-based company this week admitted to price gouging a chain of New Jersey grocery stores in connection with the sale of KN95 masks during the coronavirus pandemic, U.S. Attorney Philip Sellinger announced Tuesday.

Milk & Honey Ventures LLC, a company based in Brooklyn, New York, pleaded guilty Monday to price gouging, a violation of the Defense Production Act, according to court documents provided by the U.S. Department of Justice.

According to documents filed, Milk & Honey Ventures and two partners purchased 250,000 KN95 masks from a foreign manufacturer. Milk & Honey Ventures and one of those partners then sold 100,000 masks to a chain of New Jersey grocery stores for $5.25 per mask, a markup of more than 400 percent, officials said.

Court documents did not identify the New Jersey grocery store chain that purchased the masks.

Milk & Honey Ventures is scheduled for sentencing on Aug. 9. A violation of the Defense Production Act carries a maximum fine of $200,000