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Company in Fraud Case Stays in Business
Saturday March 8, 2:50 PM EST
CINCINNATI (AP) — A company that sells "male enhancement" tablets and other herbal supplements can remain in business while its top executive awaits sentencing on fraud and money laundering charges, a federal judge said.
Berkeley Premium Nutraceuticals will be allowed to hire an offshore company to process its credit card transactions, according to a plan approved Friday by U.S. District Judge S. Arthur Spiegel. Domestic processing companies had refused to work with Berkeley after founder and president Steve Warshak was convicted in January.
Spiegel agreed to let Berkeley contract with Germany-based B+S Card Service GmbH but barred Berkeley from transferring money overseas.
Prosecutors opposed the move, arguing that any offshore transactions would be difficult to monitor. Assistant U.S. Attorney Anne Porter said neither Warshak nor any Berkeley officials should be trusted to keep assets in the United States.
Warshak, 40, faces more than 20 years in prison. A jury found him guilty of conspiracy to commit mail fraud, bank fraud and money laundering.
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Berkeley, based in suburban Forest Park, markets a number of products advertised to boost energy and manage weight, but its main business is Enzyte, which promises men a bigger penis. Television ads for Enzyte feature "Smiling Bob," a goofy, grinning man whose life gets much better after he uses the product.
Prosecutors claimed customers were bilked out of $100 million through a series of deceptive ads, manipulated credit card transactions and the company's refusal to accept returns or cancel orders. They said unauthorized credit card charges generated thousands of complaints over unordered products.
Some former employees, including relatives of Warshak, pleaded guilty to other charges and cooperated with prosecutors. They testified that the company created fictitious doctors to endorse the pills, fabricated a customer-satisfaction survey and made up numbers to back claims about Enzyte's effectiveness.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d8v9etgg0&date=20080308
Saturday March 8, 2:50 PM EST
CINCINNATI (AP) — A company that sells "male enhancement" tablets and other herbal supplements can remain in business while its top executive awaits sentencing on fraud and money laundering charges, a federal judge said.
Berkeley Premium Nutraceuticals will be allowed to hire an offshore company to process its credit card transactions, according to a plan approved Friday by U.S. District Judge S. Arthur Spiegel. Domestic processing companies had refused to work with Berkeley after founder and president Steve Warshak was convicted in January.
Spiegel agreed to let Berkeley contract with Germany-based B+S Card Service GmbH but barred Berkeley from transferring money overseas.
Prosecutors opposed the move, arguing that any offshore transactions would be difficult to monitor. Assistant U.S. Attorney Anne Porter said neither Warshak nor any Berkeley officials should be trusted to keep assets in the United States.
Warshak, 40, faces more than 20 years in prison. A jury found him guilty of conspiracy to commit mail fraud, bank fraud and money laundering.
~
Berkeley, based in suburban Forest Park, markets a number of products advertised to boost energy and manage weight, but its main business is Enzyte, which promises men a bigger penis. Television ads for Enzyte feature "Smiling Bob," a goofy, grinning man whose life gets much better after he uses the product.
Prosecutors claimed customers were bilked out of $100 million through a series of deceptive ads, manipulated credit card transactions and the company's refusal to accept returns or cancel orders. They said unauthorized credit card charges generated thousands of complaints over unordered products.
Some former employees, including relatives of Warshak, pleaded guilty to other charges and cooperated with prosecutors. They testified that the company created fictitious doctors to endorse the pills, fabricated a customer-satisfaction survey and made up numbers to back claims about Enzyte's effectiveness.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d8v9etgg0&date=20080308
