Here’s a sentence that’s going to shake up the supplement industry: the guy behind Enzyte just got sentenced to twenty-five years in jail and the company was hit with a $500 million dollar fine. From the Wall Street Journal:
[i]In Cincinnati, the marketing of a male sexual enhancement product called Enzyte, which reportedly used ads featuring “Smiling Bob,” a happy man with an exaggerated smile (pictured), has led to a whopping jail sentence for the founder of Berkeley Premium Nutraceuticals.
Today, U.S. District Judge S. Arthur Spiegel sentenced Steve Warshak to 25 years in prison after he was convicted in February on 93 counts of conspiracy, fraud and money laundering. Here’s the AP story.
Federal prosecutors accused the company of bilking customers out of $100 million through a series of deceptive ads, manipulated credit card transactions and refusal to accept returns or cancel orders. Judge Spiegel ordered the company, along with other defendants, to forfeit more than $500 million – a figure based on how much Warshak and the company took in.[/i]
Obviously most supplement manufacturers aren’t engaging in the some of the direct-sales crimes that Enzyte was, but there are a hell of a lot of supplement ads making false claims about one herbal steroid or another. Is anyone else hoping to see a whole lot more fraud causes filed?