Supplements-FYI

[Guest guest]

The maker of dietary supplements that claim to improve everything from sexuality

to memory defrauded thousands of customers and banks of at least $100 million,

federal authorities say.

http://www.cnn.com/2006/LAW/09/21/enzyte.indictment.ap/index.html

A federal indictment names Berkeley Premium Nutraceuticals, its owner and

president, Warshak, and five other individuals, including Warshak's

mother, on charges that include conspiracy, money laundering, and mail, wire and

bank fraud.

They are accused by federal authorities of luring customers with free-trial

offers and money-back guarantees, then billing their credit cards without

authorization.

Warshak, who has 107 counts against him, denies the accusations and will

continue to operate the company, his attorney said Thursday.

The company, which recently said it has 5 million customers worldwide, is known

for its " Smiling Bob " ads that depict a man whose life gets better after he uses

the company's Enzyte for " natural male enhancement. "

The company markets nationally a variety of other products claiming to help

everything from night vision to memory to female libido.

False advertising alleged

The company, based in suburban Forest Park, Ohio, also used false advertising,

the indictment charges.

In one example, Wednesday's indictment cited ads placed in Penthouse and other

male-oriented magazines that claimed Enzyte was developed after years of study

by two doctors, one at Harvard and the other at Stanford.

" The company president and others made up information in their advertisements,

such as endorsements by doctors that did not exist, and results of customer

satisfaction surveys that had never been conducted, " U.S. Attorney Greg Lockhart

said.

Customers with complaints were told to write to a director of customer care who

did not exist, the indictment alleges.

The Food and Drug Administration, Internal Revenue Service, postal inspectors

and other agencies participated in the investigation.

The indictment says at one point, Berkeley marketed a supplement called Rovicid

as a prostate health product for men, but later relabeled old stocks of Rovicid

as a cardiac health supplement for men and women.

A court appearance for the defendants was scheduled for September 28.

Weinberg, Warshak's attorney, said he will plead not guilty and " vigorously

assert his innocence to all charges. "

Charges carry 30-year sentence

Several charges, including conspiracy to commit mail, wire and bank fraud, that

Warshak faces each carry sentences of up to 30 years in prison with conviction.

" We believe the government converted what in its essence is a civil and

regulatory issue into this broad criminal indictment, " said Weinberg, who is

based in Boston.

In March, Berkeley agreed to pay $2.5 million to settle allegations brought by

the attorneys general in Ohio and other states that the company engaged in

deceptive practices in the sale of its herbal products. As part of the

settlement, Berkeley and Warshak did not admit any wrongdoing.

Five of the company's former executives have pleaded guilty in U.S. District

Court to defrauding customers through a product giveaway program that led to

unauthorized billing of their credit cards.

Federal authorities have frozen $25 million in assets held by Warshak and

members of his family, and Lockhart said authorities will continue to try to

recover money to give victims.

Berkeley generated about $250 million in sales in 2004, mostly from telephone

orders spurred by TV ads.

In a recent advertisement in The Cincinnati Enquirer, Berekley said: " We have

invested heavily in major improvements designed to overcome our early growing

pains. The net result of these investments is that today we have more than 5

million customers worldwide, and our customer service is better than most of the

Fortune 500 companies. "

The ad included a coupon for a free 60-day sample of any Berkeley product.

Copyright 2006 The Associated Press. All rights reserved.This material may not

be published, broadcast, rewritten, or redistributed.

Check Nutrition at my site:

Nutrition.teach-nology.com

Ortiz, RD

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Ever wonder about those people who spend $2 apiece

on those little bottles of Evian water? Try spelling Evian backward.