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{{Short description|Herbal nutritional supplement}} |
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{{Cleanup|date=May 2007}} |
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{{Use mdy dates|date=August 2024}} |
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'''Enzyte''' is an American herbal [[nutritional supplement]] originally manufactured by Berkeley Premium Nutraceuticals. The marketing of Enzyte resulted in a conviction and prison term for the company's owner and bankruptcy of the company. The product is now marketed by Vianda, LLC of [[Cincinnati, Ohio]]. The manufacturer has claimed that Enzyte promotes "natural [[male enhancement]]," which is a [[euphemism]] for enhancing erectile function. However, its effectiveness has been called into doubt and the claims of the manufacturer have been under scrutiny from various state and federal organizations. Kenneth Goldberg, medical director of the Male Health Center at [[Baylor University]], says, "It makes no sense medically. There's no way that increasing blood flow to the penis, as Enzyte claims to do, will actually increase its size."<ref>{{Cite news |date=April 18, 2002 |title=Why is this man smiling |url=https://www.usatoday.com/news/health/drugs/2002-04-18-enzyte.htm |access-date=January 29, 2011 |work=[[USA Today]]}}</ref> |
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In March 2005, following thousands of consumer complaints to the [[Better Business Bureau]], federal agents raided Berkeley facilities, gathering material that resulted in a 112-count [[indictment|criminal indictment]]. The company's founder and CEO, Steven M Warshak, and his mother, Harriet Warshak, were found guilty of [[conspiracy (crime)|conspiracy]] to commit [[mail fraud]], [[bank fraud]], and [[money laundering]], and in September 2008 they were sentenced to prison and ordered to forfeit $500 million in assets.<ref name="McKee">{{Cite news |last=McKee |first=Tom |date=February 25, 2008 |title=Berkeley Premium Nutraceuticals Founder Found Guilty of Crimes |url=http://www.wcpo.com/news/local/story.aspx?content_id=da4ca689-d4ec-4a85-bd81-568828d852c9 |url-status=dead |archive-url=https://web.archive.org/web/20081014083304/http://www.wcpo.com/news/local/story.aspx?content_id=da4ca689-d4ec-4a85-bd81-568828d852c9 |archive-date=October 14, 2008 |access-date=May 29, 2008 |work=[[ABC News (United States)|ABC News]]}}</ref> The convictions and fines forced the company into [[bankruptcy]], and in December 2008 its assets were sold for $2.75 million to investment company Pristine Bay, which continued operations.<ref name="Pristine">{{Cite web |title=Testinate 250, ultimate testosterone booster |url=http://nutrition-de.com/progain-350-und-testinate-250/ |url-status=dead |archive-url=https://web.archive.org/web/20150106143203/http://nutrition-de.com/progain-350-und-testinate-250/ |archive-date=January 6, 2015}}</ref> |
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Enzyte is widely advertised on U.S. television as "The once-daily tablet for natural male enhancement", or "The one-a-day tablet for natural male enhancement." The commercials feature a character known as "Smilin' Bob," acted out by Canadian actor Andrew Olcott,<ref>{{Cite news |date=September 27, 2012 |title=Branded for Life |url=https://www.bloomberg.com/news/articles/2012-09-27/branded-for-life |access-date=June 19, 2024 |publisher=Bloomberg L.P.}}</ref> who, in the commercials, always wears a smile that is implied to result from the enhancing effects of Enzyte; these advertisements feature [[double entendre]]s. Some such commercials also feature an equally smiling "Mrs. Bob." |
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Because Enzyte is an herbal product, no testing is required by the [[U.S. Food and Drug Administration]]. An official of the [[Federal Trade Commission]] division that monitors advertising says the lack of scientific testing is "a red flag right away. There's no science behind these claims."<ref name="Newsday" /> The company has conceded that it has no scientific studies that substantiate any of its Enzyte claims.<ref>{{Cite news |date=September 23, 2004 |title=TV Ads for Sex Supplement Challenged |url=https://www.washingtonpost.com/wp-dyn/articles/A43388-2004Sep22.html |access-date=January 3, 2011 |newspaper=The Washington Post}}</ref> |
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Despite being a [[chemical compound|compound]] of [[herbs]], [[minerals]], and [[vitamin]]s, Enzyte formerly promoted itself under a fake [[scientific name]] of ''Suffragium asotas''. While Enzyte's manufacturer claims this phrase translates as "better sex," this is incorrect. Harvard teaching fellow Rhett Martin says in a USA Today article[http://www.usatoday.com/news/health/drugs/2002-04-18-enzyte.htm] that the phrase might be an error for ''suffragor asotis'', meaning "refuge for the dissipated." |
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Ira Sharlip, a spokesman for the [[American Urological Association]], has said, "There is no such thing as a penis pill that works. These are all things that are sold for profit. There's no science or substance behind them."<ref name="Newsday">{{Cite web |last=Wotapka |first=Dawn |date=June 10, 2003 |title='No Science' Behind Male Pill's Claims / Best bet? Deal with it |url=http://pqasb.pqarchiver.com/newsday/access/345405781.html?dids=345405781:345405781&FMT=ABS&FMTS=ABS:FT&type=current&date=Jun+10%2C+2003&author=Dawn+Wotapka.+STAFF+WRITER&pub=Newsday+%28Combined+editions%29&desc=%27No+Science%27+Behind+Male+Pill%27s+Claims+%2F+Best+bet%3F+Deal+with+it&pqatl=google |url-status=dead |archive-url=https://web.archive.org/web/20101121203651/http://pqasb.pqarchiver.com/newsday/access/345405781.html?dids=345405781:345405781&FMT=ABS&FMTS=ABS:FT&type=current&date=Jun+10%2C+2003&author=Dawn+Wotapka.+STAFF+WRITER&pub=Newsday+%28Combined+editions%29&desc=%27No+Science%27+Behind+Male+Pill%27s+Claims+%2F+Best+bet%3F+Deal+with+it&pqatl=google |archive-date=November 21, 2010 |website=Newsday}}</ref> |
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Enzyte is said to contain: |
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* ''[[Tribulus terrestris]]'' (puncture vine) |
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Enzyte's formulation was reportedly developed for Vianda by Marilyn Barrett.{{citation needed|date=September 2019}} |
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* [[Panax Ginseng]] |
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Enzyte is said to contain:{{citation needed|date=September 2019}} |
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* ''[[Avena sativa]]'' (oat) |
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* Asian Ginseng Root Extract |
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* Grape Seed Extract |
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* ''[[Lepidium meyenii]]'' (maca) |
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* [[Muira puama]] |
* [[Muira puama]] |
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* ''[[Ginkgo biloba]]'' |
* ''[[Ginkgo biloba]]'' |
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* [[Niacin (substance)|Niacin]] |
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* [[L-Arginine]] |
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*[[ |
* [[Copper]] |
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*[[Aehrraid 24]] |
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⚫ | Most of the above ingredients are commonly available as [[Over-the-counter drug|over the counter]] herbal or dietary supplements, and most have anecdotal reports, but marginal or unproven scientific evidence, of efficacy on various systems in the human body. Several of the herbal ingredients are included only in very low quantities. |
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*[[Food dye no.49]] |
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* [[Saw Palmetto]] |
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[[Pausinystalia johimbe|Yohimbe]] was previously included in the original formulation of Enzyte, produced until at least 2004.{{Citation needed|date=July 2019}} However, as yohimbe's legal status in Canada is unclear, Enzyte produced after 2004 no longer contains yohimbe extract. |
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* Other ingredients: [[Gelatin]], [[Cellulose]], [[rice bran]], [[oat fiber]], [[magnesium stearate]], [[silicon dioxide]], dicalcium phosphate, silica, [[titanium dioxide]] and [[propylene glycol]]. |
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Additionally, zinc is an ingredient in Enzyte. Some men who have low zinc levels in their body have had success using zinc supplements to treat erection problems.<ref>{{Cite web |last=Rhodes |first=Monica |year=2006 |title=Erection Problems (Erectile Dysfunction) |url=http://www.med.nyu.edu/healthwise/article.html?hwid=hw112768 |url-status=dead |archive-url=https://web.archive.org/web/20100823234649/http://www.med.nyu.edu/healthwise/article.html?hwid=hw112768 |archive-date=August 23, 2010 |access-date=May 21, 2009 |publisher=NYU Langone Medical Center}}</ref> |
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== Effectiveness == |
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Currently, the effectiveness of Enzyte is unproven. |
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⚫ | A civil lawsuit alleged Enzyte does not work as advertised.<ref>{{Cite web |title=Hagens Berman Sobol Shapiro LLP - Protecting the Rights of Investors, Consumers, Workers and the Environment |url=http://www.hagens-berman.com/files/enzytefaq1090006698639.html |url-status=dead |archive-url=https://web.archive.org/web/20070126232815/http://www.hagens-berman.com/files/enzytefaq1090006698639.html |archive-date=January 26, 2007 |access-date=June 23, 2007}}</ref> Despite manufacturer claims that Enzyte will increase penis size, girth, and firmness and improve sexual performance, there exists no scientific evidence that Enzyte is capable of making good on these claims. In fact, Enzyte has never been scientifically tested by the [[Food and Drug Administration|FDA]] or other independent third party.<ref>{{Cite web |title=Enzyte Complaint - Final Version (00009634.DOC;1) |url=http://www.casewatch.org/cp/enzytecmp.pdf |access-date=January 3, 2011}}</ref> Accordingly, Enzyte is required by current U.S. law to be marketed as an [[herbal supplement]] and may not legally be called a drug. In keeping with FTC rulings, Enzyte is not allowed to claim these benefits in its advertising. However, as of June 2010, TV commercials for the product still use the phrase "natural male enhancement." |
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== Federal indictment and trial== |
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Thousands of consumer complaints were made to the [[Better Business Bureau]] about the company's business practices, especially the "autoship" program that repeatedly charged customers' credit cards for refills even after they canceled their orders. Federal agents raided Berkeley facilities in March 2005, gathering material that led to criminal charges. On September 21, 2006, Berkeley Premium Nutraceuticals; its owner and president, Steve Warshak; and five other individuals were indicted by the United States, Southern District of Ohio, U.S. Attorney Greg Lockhart, on charges of [[Conspiracy (crime)|conspiracy]], [[money laundering]], and [[Mail fraud|mail]], wire, and bank fraud. The indictment alleged that the company defrauded consumers and banks of [[United States dollar|US$]]100 million.<ref name="McKee" /><ref name="FoxIndict">{{Cite news |date=September 26, 2006 |title='Natural Male Enhancement' Company Owner Indicted on Fraud, Other Charges |url=http://www.foxnews.com/story/0,2933,215087,00.html?sPage=fnc.national/crime |access-date=January 9, 2008 |publisher=Fox News |agency=Associated Press}}</ref> The United States [[Food and Drug Administration]], [[Internal Revenue Service]], [[United States Postal Inspection Service]], and other agencies participated in the investigation.<ref>{{Cite news |date=September 21, 2006 |title=Enzyte executive indicted for fraud |url=https://www.nbcnews.com/id/wbna14944410 |access-date=May 29, 2008 |publisher=[[NBC News]]}}</ref> The federal fraud trial began on January 8, 2008.<ref>{{Cite web |date=February 26, 2008 |title=Berkeley executives convicted of conspiracy and fraud in connection with sales of dietary supplements |url=http://www.usdoj.gov/usao/ohs/Press/02-26-08.pdf |url-status=dead |archive-url=https://web.archive.org/web/20090611210858/http://www.usdoj.gov/usao/ohs/Press/02-26-08.pdf |archive-date=June 11, 2009 |access-date=May 29, 2008 |publisher=[[United States Department of Justice]]}}</ref> |
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In testimony during the trial, a former executive with Berkeley testified that the enhancements the company claimed were achieved by use of Enzyte were fabricated, and the company defrauded customers by continuing to charge them for additional shipments of the supplement. He further testified that company employees were instructed to make it as difficult as possible for unhappy customers to receive refunds.<ref>{{Cite news |date=January 16, 2008 |title=Ads for male enhancement pill bogus, former exec says |url=http://www.columbusdispatch.com/live/content/health/stories/2008/01/16/enzyte.html |url-status=dead |archive-url=https://archive.today/20130120032459/http://www.columbusdispatch.com/live/content/health/stories/2008/01/16/enzyte.html |archive-date=January 20, 2013 |access-date=May 29, 2008 |work=[[Columbus Dispatch]]}}</ref> |
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=== Conviction and sentencing === |
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On February 22, 2008, Steven Warshak was found guilty of 93 counts of conspiracy, fraud, and money laundering. On August 27, 2008, he was sentenced by U.S. District Judge Arthur Spiegel to 25 years in prison and ordered to pay $93,000 in fines. Warshak was an inmate at the [[Federal Correctional Institution, Elkton|Federal Correctional Institution]] in [[Elkton, Ohio]]. His company, Berkeley Premium Nutraceuticals, along with other defendants, was ordered to forfeit $500 million. His 75-year-old mother, Harriet Warshak, was sentenced to two years in prison<ref>{{Cite web |title=Ohio company owner gets 25 years in fraud case |url=https://www.nytimes.com/aponline/business/AP-Enzyte-Maker-Sentencing.html |website=The New York Times}}{{dead link|date=May 2024}}</ref><ref>{{Cite news |last=Kinney |first=Terry |date=August 27, 2008 |title=Ohio company owner gets 25 years in fraud case |agency=Associated Press}}</ref> but released on bond pending appeal after turning over her house, bank accounts, and other assets related to her crimes.<ref name="grandmother">{{Cite web |date=July 22, 2009 |title='Smilin' Bob' grandmother avoids jail |url=http://www.upi.com/Business_News/2009/07/22/Smilin-Bob-grandmother-avoids-jail/UPI-82631248302461/ |access-date=January 3, 2011 |work=United Press International}}</ref> |
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Both Steven and Harriet Warshak appealed their convictions. The United States Court of Appeals for the Sixth Circuit in ''[[United States v. Warshak]]'' (6th Cir. December 14, 2010) 631 F.3d 266, upheld Steven Warshak's convictions and all convictions against Harriet Warshak except for money laundering and vacated their sentences, remanding the sentencing to the lower court. |
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On September 21, 2011, Steven Warshak's sentence was reduced from 25 years to 10 years.<ref>{{Cite web |title=Cincinnati News, Sports and Things to Do {{!}} Cincinnati Enquirer |url=https://www.cincinnati.com/ |access-date=July 7, 2022 |website=The Enquirer |language=en-US}}</ref> His mother's sentence was reduced from two years to one day, and she never served any time in jail.<ref>{{Cite web |title=Warshak's mom has sentence reduced |url=http://communitypress.cincinnati.com/article/AB/20110914/NEWS010702/109150312/Warshak-s-mom-has-sentence-cut-1-day |website=Cincinnati.com}}{{dead link|date=May 2024}}</ref> Factors in reducing the sentence were that the amount of total loss by customers may have been less than $400 million and that the sentences of co-defendants were only two years. Warshak was released from prison on June 14, 2017, according to the Federal Prison Inmate Locator system. |
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⚫ | Most of the above ingredients are commonly available as over the counter herbal or dietary supplements, and most have anecdotal or scientific evidence of efficacy on various systems in the human body. |
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==Controversy over Enzyte's effectiveness== |
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==Continued company operation== |
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Currently, The [[effectiveness]] of Enzyte is in [[dispute]]. The [[Center for Science in the Public Interest]] has urged the [[Federal Trade Commission]] (which has power under [[federal law]] to regulate advertising) to disallow further television [[advertising]] for Enzyte, due to a lack of proper [[clinical trials|studies supporting claims]]. They have settled with the [[Attorneys General]] of various states and have altered their advertising in a more truthful fashion. Substantiation for the brand is on file for each claim. The company now offers a 60 day return policy on UNOPENED products. |
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The Warshaks' convictions and fines forced the company into [[bankruptcy]]. In December 2008, its assets were acquired from bankruptcy court for $2.75 million by investment company Pristine Bay, which is affiliated with Cincinnati developer Chuck Kubicki. Kubicki said he wanted to save the jobs of the company's 200 employees and retain a major tenant in one of his properties in suburban Cincinnati at [[Forest Park, Ohio]]. He said he would change the company name but would keep the brand.<ref name="Pristine" /> In March 2009, Hamilton County commissioners unanimously voted to give a $195,000 property tax break to the company based on projected jobs.<ref>{{Cite web |title=Cincinnati News, Sports and Things to Do {{!}} Cincinnati Enquirer |url=https://www.cincinnati.com/ |access-date=July 7, 2022 |website=The Enquirer |language=en-US}}</ref><ref>{{Cite web |date=March 25, 2009 |title=Tax breaks keep Berkeley in Forest Park |url=https://www.bizjournals.com/cincinnati/stories/2009/03/23/daily34.html |access-date=August 13, 2024 |website=The Business Journals}}</ref> |
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On June 26, 2009, the company name was changed to Vianda LLC. In a press release, the company announced plans to expand, hiring as many as 400 additional workers.<ref name="Vianda">{{Cite news |last=Bernard-Kuhn |first=Lisa |date=June 27, 2009 |title=Enzyte firm changes name, adding jobs |url=http://news.cincinnati.com/article/20090626/BIZ01/906270333/Enzyte+firm+changes+name |work=[[The Cincinnati Enquirer]]}} Link Missing/Removal</ref> On December 14, 2009, Cincinnati Business Courier reported employment of 180, revision of sales projections of 400% growth to $120 million downward to an estimated 33% growth to $40 million, management team changes, and continued customer complaints of improper billing.<ref>{{Cite web |last=Monk |first=Dan |date=December 10, 2009 |title=Cincinnati's Chuck Kubicki juggles lineup at Vianda |url=https://www.bizjournals.com/cincinnati/stories/2009/12/14/story1.html?page=all |access-date=August 13, 2024 |website=Cincinnati Business Courier}}</ref> |
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Due to Enzyte's allegedly misleading advertising, a common misconception is that use of Enzyte promotes permanent physical penile growth, however, the product is intended to create a firmer erection by temporarily increasing blood flow to the penis. This intended effect is similar to the actions of erectile dysfunction drugs like Viagra and Cialis. However, unlike these FDA-approved drugs, no evidence exists that proves Enzyte to be effective in this regard. The product advertising states in small print that it "is not intended or promoted to diagnose, or treat any disease" and since ED (Erectile dysfunction) is a recognized disease, the advertising is illegal |
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Company is currently under the leadership of Cheryl Jaeger<ref>{{Cite web |title=Vianda, LLC: Private Company Information - Bloomberg |url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=8685097 |access-date=June 24, 2019 |website=bloomberg.com}}</ref> starting on January 6, 2015{{citation needed|date=September 2019}} and the company is now located at 11260 Cornell Park Drive, Suite 706 Cincinnati, Ohio 45242<ref>{{Cite web |title=ContactUs |url=https://www.enzyte.com/contactus |access-date=June 24, 2019 |website=enzyte.com}}</ref> Company is also connected to the following companies DYNAMIC DIRECT, LLC, ENHANCED LIVING PRODUCTS, LLC, MOVNNON, LLC, PRISTINE BAY, LLC, and LAST SAY, LLC.{{citation needed|date=September 2019}} |
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==Federal Indictment== |
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On [[September 21]], [[2006]], Berkeley Premium Nutraceuticals, its owner and president, Steven Warshak, and five other individuals were indicted by the United States, Southern District of Ohio, U.S. Attorney Greg Lockhart, on charges of conspiracy, money laundering, and mail, wire and bank fraud. The indictment alleges a massive scam totaling roughly 100 million U.S. dollars. The United States [[Food and Drug Administration]], [[Internal Revenue Service]], postal inspectors and other agencies participated in the investigation. [http://www.usdoj.gov/usao/ohs/Press/09-21-06.pdf] |
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== See also == |
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==Berkeley Premium Nutraceuticals== |
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* [[Erectile dysfunction]] |
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The manufacturer of Enzyte, Berkeley Premium Nutraceuticals, was originally founded by a salesman who sold the Enzyte supplement from his garage. |
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* [[Patent medicine]] |
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== |
== References == |
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{{Reflist}} |
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==External links== |
== External links == |
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*[http://www.enzyte.com Enzyte website] |
* [http://www.enzyte.com Enzyte website] |
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*[http://www.mgsglaw.com/enzyte.html Class action lawsuit website] |
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* [https://web.archive.org/web/20160108041342/http://www.crita.org/wiki/kubicki-company-buy-berkeley-premium-nutraceuticals/ Kubicki Company Buy Berkeley Premium Nutraceuticals] |
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*[http://blog.wired.com/27bstroke6/2007/06/appeals_court_s.html Appeals Court Says Feds Need Warrants to Search E-Mail] |
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[[Category:Sexual health]] |
[[Category:Sexual health]] |
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[[Category:Dietary supplements]] |
[[Category:Dietary supplements]] |
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[[Category: |
[[Category:Confidence tricks]] |
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[[Category:Health fraud products]] |
Latest revision as of 20:54, 5 November 2024
Enzyte is an American herbal nutritional supplement originally manufactured by Berkeley Premium Nutraceuticals. The marketing of Enzyte resulted in a conviction and prison term for the company's owner and bankruptcy of the company. The product is now marketed by Vianda, LLC of Cincinnati, Ohio. The manufacturer has claimed that Enzyte promotes "natural male enhancement," which is a euphemism for enhancing erectile function. However, its effectiveness has been called into doubt and the claims of the manufacturer have been under scrutiny from various state and federal organizations. Kenneth Goldberg, medical director of the Male Health Center at Baylor University, says, "It makes no sense medically. There's no way that increasing blood flow to the penis, as Enzyte claims to do, will actually increase its size."[1]
In March 2005, following thousands of consumer complaints to the Better Business Bureau, federal agents raided Berkeley facilities, gathering material that resulted in a 112-count criminal indictment. The company's founder and CEO, Steven M Warshak, and his mother, Harriet Warshak, were found guilty of conspiracy to commit mail fraud, bank fraud, and money laundering, and in September 2008 they were sentenced to prison and ordered to forfeit $500 million in assets.[2] The convictions and fines forced the company into bankruptcy, and in December 2008 its assets were sold for $2.75 million to investment company Pristine Bay, which continued operations.[3]
Enzyte is widely advertised on U.S. television as "The once-daily tablet for natural male enhancement", or "The one-a-day tablet for natural male enhancement." The commercials feature a character known as "Smilin' Bob," acted out by Canadian actor Andrew Olcott,[4] who, in the commercials, always wears a smile that is implied to result from the enhancing effects of Enzyte; these advertisements feature double entendres. Some such commercials also feature an equally smiling "Mrs. Bob."
Because Enzyte is an herbal product, no testing is required by the U.S. Food and Drug Administration. An official of the Federal Trade Commission division that monitors advertising says the lack of scientific testing is "a red flag right away. There's no science behind these claims."[5] The company has conceded that it has no scientific studies that substantiate any of its Enzyte claims.[6]
Ira Sharlip, a spokesman for the American Urological Association, has said, "There is no such thing as a penis pill that works. These are all things that are sold for profit. There's no science or substance behind them."[5]
Ingredients
[edit]Enzyte's formulation was reportedly developed for Vianda by Marilyn Barrett.[citation needed]
Enzyte is said to contain:[citation needed]
- Asian Ginseng Root Extract
- Grape Seed Extract
- Epimedium (Horny Goat Weed)
- Zinc oxide
- Muira puama
- Ginkgo biloba
- Niacin
- Copper
Most of the above ingredients are commonly available as over the counter herbal or dietary supplements, and most have anecdotal reports, but marginal or unproven scientific evidence, of efficacy on various systems in the human body. Several of the herbal ingredients are included only in very low quantities.
Yohimbe was previously included in the original formulation of Enzyte, produced until at least 2004.[citation needed] However, as yohimbe's legal status in Canada is unclear, Enzyte produced after 2004 no longer contains yohimbe extract.
Additionally, zinc is an ingredient in Enzyte. Some men who have low zinc levels in their body have had success using zinc supplements to treat erection problems.[7]
Effectiveness
[edit]Currently, the effectiveness of Enzyte is unproven.
A civil lawsuit alleged Enzyte does not work as advertised.[8] Despite manufacturer claims that Enzyte will increase penis size, girth, and firmness and improve sexual performance, there exists no scientific evidence that Enzyte is capable of making good on these claims. In fact, Enzyte has never been scientifically tested by the FDA or other independent third party.[9] Accordingly, Enzyte is required by current U.S. law to be marketed as an herbal supplement and may not legally be called a drug. In keeping with FTC rulings, Enzyte is not allowed to claim these benefits in its advertising. However, as of June 2010, TV commercials for the product still use the phrase "natural male enhancement."
Federal indictment and trial
[edit]Thousands of consumer complaints were made to the Better Business Bureau about the company's business practices, especially the "autoship" program that repeatedly charged customers' credit cards for refills even after they canceled their orders. Federal agents raided Berkeley facilities in March 2005, gathering material that led to criminal charges. On September 21, 2006, Berkeley Premium Nutraceuticals; its owner and president, Steve Warshak; and five other individuals were indicted by the United States, Southern District of Ohio, U.S. Attorney Greg Lockhart, on charges of conspiracy, money laundering, and mail, wire, and bank fraud. The indictment alleged that the company defrauded consumers and banks of US$100 million.[2][10] The United States Food and Drug Administration, Internal Revenue Service, United States Postal Inspection Service, and other agencies participated in the investigation.[11] The federal fraud trial began on January 8, 2008.[12]
In testimony during the trial, a former executive with Berkeley testified that the enhancements the company claimed were achieved by use of Enzyte were fabricated, and the company defrauded customers by continuing to charge them for additional shipments of the supplement. He further testified that company employees were instructed to make it as difficult as possible for unhappy customers to receive refunds.[13]
Conviction and sentencing
[edit]On February 22, 2008, Steven Warshak was found guilty of 93 counts of conspiracy, fraud, and money laundering. On August 27, 2008, he was sentenced by U.S. District Judge Arthur Spiegel to 25 years in prison and ordered to pay $93,000 in fines. Warshak was an inmate at the Federal Correctional Institution in Elkton, Ohio. His company, Berkeley Premium Nutraceuticals, along with other defendants, was ordered to forfeit $500 million. His 75-year-old mother, Harriet Warshak, was sentenced to two years in prison[14][15] but released on bond pending appeal after turning over her house, bank accounts, and other assets related to her crimes.[16]
Both Steven and Harriet Warshak appealed their convictions. The United States Court of Appeals for the Sixth Circuit in United States v. Warshak (6th Cir. December 14, 2010) 631 F.3d 266, upheld Steven Warshak's convictions and all convictions against Harriet Warshak except for money laundering and vacated their sentences, remanding the sentencing to the lower court.
On September 21, 2011, Steven Warshak's sentence was reduced from 25 years to 10 years.[17] His mother's sentence was reduced from two years to one day, and she never served any time in jail.[18] Factors in reducing the sentence were that the amount of total loss by customers may have been less than $400 million and that the sentences of co-defendants were only two years. Warshak was released from prison on June 14, 2017, according to the Federal Prison Inmate Locator system.
Continued company operation
[edit]The Warshaks' convictions and fines forced the company into bankruptcy. In December 2008, its assets were acquired from bankruptcy court for $2.75 million by investment company Pristine Bay, which is affiliated with Cincinnati developer Chuck Kubicki. Kubicki said he wanted to save the jobs of the company's 200 employees and retain a major tenant in one of his properties in suburban Cincinnati at Forest Park, Ohio. He said he would change the company name but would keep the brand.[3] In March 2009, Hamilton County commissioners unanimously voted to give a $195,000 property tax break to the company based on projected jobs.[19][20]
On June 26, 2009, the company name was changed to Vianda LLC. In a press release, the company announced plans to expand, hiring as many as 400 additional workers.[21] On December 14, 2009, Cincinnati Business Courier reported employment of 180, revision of sales projections of 400% growth to $120 million downward to an estimated 33% growth to $40 million, management team changes, and continued customer complaints of improper billing.[22]
Company is currently under the leadership of Cheryl Jaeger[23] starting on January 6, 2015[citation needed] and the company is now located at 11260 Cornell Park Drive, Suite 706 Cincinnati, Ohio 45242[24] Company is also connected to the following companies DYNAMIC DIRECT, LLC, ENHANCED LIVING PRODUCTS, LLC, MOVNNON, LLC, PRISTINE BAY, LLC, and LAST SAY, LLC.[citation needed]
See also
[edit]References
[edit]- ^ "Why is this man smiling". USA Today. April 18, 2002. Retrieved January 29, 2011.
- ^ a b McKee, Tom (February 25, 2008). "Berkeley Premium Nutraceuticals Founder Found Guilty of Crimes". ABC News. Archived from the original on October 14, 2008. Retrieved May 29, 2008.
- ^ a b "Testinate 250, ultimate testosterone booster". Archived from the original on January 6, 2015.
- ^ "Branded for Life". Bloomberg L.P. September 27, 2012. Retrieved June 19, 2024.
- ^ a b Wotapka, Dawn (June 10, 2003). "'No Science' Behind Male Pill's Claims / Best bet? Deal with it". Newsday. Archived from the original on November 21, 2010.
- ^ "TV Ads for Sex Supplement Challenged". The Washington Post. September 23, 2004. Retrieved January 3, 2011.
- ^ Rhodes, Monica (2006). "Erection Problems (Erectile Dysfunction)". NYU Langone Medical Center. Archived from the original on August 23, 2010. Retrieved May 21, 2009.
- ^ "Hagens Berman Sobol Shapiro LLP - Protecting the Rights of Investors, Consumers, Workers and the Environment". Archived from the original on January 26, 2007. Retrieved June 23, 2007.
- ^ "Enzyte Complaint - Final Version (00009634.DOC;1)" (PDF). Retrieved January 3, 2011.
- ^ "'Natural Male Enhancement' Company Owner Indicted on Fraud, Other Charges". Fox News. Associated Press. September 26, 2006. Retrieved January 9, 2008.
- ^ "Enzyte executive indicted for fraud". NBC News. September 21, 2006. Retrieved May 29, 2008.
- ^ "Berkeley executives convicted of conspiracy and fraud in connection with sales of dietary supplements" (PDF). United States Department of Justice. February 26, 2008. Archived from the original (PDF) on June 11, 2009. Retrieved May 29, 2008.
- ^ "Ads for male enhancement pill bogus, former exec says". Columbus Dispatch. January 16, 2008. Archived from the original on January 20, 2013. Retrieved May 29, 2008.
- ^ "Ohio company owner gets 25 years in fraud case". The New York Times.[dead link ]
- ^ Kinney, Terry (August 27, 2008). "Ohio company owner gets 25 years in fraud case". Associated Press.
- ^ "'Smilin' Bob' grandmother avoids jail". United Press International. July 22, 2009. Retrieved January 3, 2011.
- ^ "Cincinnati News, Sports and Things to Do | Cincinnati Enquirer". The Enquirer. Retrieved July 7, 2022.
- ^ "Warshak's mom has sentence reduced". Cincinnati.com.[dead link ]
- ^ "Cincinnati News, Sports and Things to Do | Cincinnati Enquirer". The Enquirer. Retrieved July 7, 2022.
- ^ "Tax breaks keep Berkeley in Forest Park". The Business Journals. March 25, 2009. Retrieved August 13, 2024.
- ^ Bernard-Kuhn, Lisa (June 27, 2009). "Enzyte firm changes name, adding jobs". The Cincinnati Enquirer. Link Missing/Removal
- ^ Monk, Dan (December 10, 2009). "Cincinnati's Chuck Kubicki juggles lineup at Vianda". Cincinnati Business Courier. Retrieved August 13, 2024.
- ^ "Vianda, LLC: Private Company Information - Bloomberg". bloomberg.com. Retrieved June 24, 2019.
- ^ "ContactUs". enzyte.com. Retrieved June 24, 2019.
External links
[edit]- Enzyte website
- USAToday – Why is this man smiling? It's not Viagra
- Kubicki Company Buy Berkeley Premium Nutraceuticals