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“Smiling Bob” firm convicted

This article was originally published in The Tan Sheet

Executive Summary

A federal jury on Feb. 22 convicts four executives of Cincinnati-based Berkeley Premium Nutraceuticals, marketer of Enzyte "male enhancement" supplements, of conspiracy and fraud on criminal charges of money laundering, fraud and obstruction of justice. A federal grand jury indicted the firm, Berkeley's President Steve Warshak, his mother and five additional defendants and co-conspirators on a total of 112 criminal charges in September 2006 (1"The Tan Sheet" Sept. 25, 2006, In Brief). The trial jury in the U.S. District Court for Southern Ohio also found on Feb. 26 that Berkeley, Warshak, his mother and TCI Media, another company owned by Warshak, should forfeit to the U.S. more than $33 million in assets that were proceeds of the crimes. In addition, the jury convicted Paul J. Kellogg and Steven P. Pugh. Berkeley also settled with six states in March 2006 for $2.5 million (2"The Tan Sheet" March 6, 2006, p. 8)...

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Berkeley Premium Nutraceuticals "is working through [its] current difficulties and seeing positive results," but officials say a company name change may be needed as the Enzyte "male enhancement" supplement marketer "tries to make a clean break from the past," according to a May 27 release. Four executives of the firm were convicted in February on charges of fraud and money laundering (1"The Tan Sheet" March 3, 2008, In Brief). Still, the Cincinnati-base company maintains that "with innovative marketing, customer loyalty and demand ... Berkeley will get back to the $200 million per-year company it used to be." Despite the recent economic downturn, Berkeley says it hired 70 employees in the previous 45 days and looks to double the size of its call center by the end of 2008...

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A federal grand jury indicted Berkeley Premium Nutraceuticals, the company's President Steve Warshak, his mother and five additional defendants and co-conspirators on a total of 112 criminal charges Sept. 20. Warshak engaged in conspiracy to commit mail, wire and bank fraud, money laundering, conspiracy to obstruct proceedings before FTC and other criminal acts, U.S. Attorney for the Southern District of Ohio Gregory Lockhart alleges. Warshak, et al., defrauded consumers of more than $100 mil., according to Lockhart. If convicted, the defendants are expected to forfeit assets including several parcels of land, vehicles, and the contents of numerous bank and investment accounts, according to the filing. Berkeley, marketer of male enhancement supplement Enzyte, settled with the Attorney Generals of six states in March for $2.5 mil. (1"The Tan Sheet" March 6, 2006, p. 8). Earlier this month, the Cincinnati, Ohio-based firm issued a press release asserting they had reduced consumer complaints by 90% (2"The Tan Sheet" Sept. 11, 2006, In Brief)....

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