LANSING, Mich. (WLNS) — A man from Muskegon County was convicted in federal court for selling N95 masks online, and never delivering them to customers.
Rodney Stevenson Jr. was found guilty by a federal jury in California on 11 counts, including wire fraud and laundering of monetary instruments, after he used his online company EM General to run a drop-shipping scam.
According to Stevenson’s indictment, he claimed to have N95 masks in stock that would ship from the United States but was actually ordering them from overseas.
Stevenson continued to accept orders for masks, even when they were no longer available due to high demand. The Better Business Bureau received nearly 400 complaints from people who were burned by Stevenson.
Stevenson’s company utilized drop-shipping, a practice where a person or company acts as a middleman to sell items they do not actually produce or keep in stock.
After receiving an order from a customer, the drop-shipper sends them items produced by another company, typically purchased wholesale, and aims to profit from the high sale price.
Drop-shipping itself is not illegal but the practice is rife with abuse.
Stevenson was convicted Aug. 24 on six counts of wire fraud, four counts of laundering monetary instruments and one count of engaging in monetary transactions with proceeds of unlawful activity.
