Berkeley Premium bankrupt
This article was originally published in The Tan Sheet
The much-maligned marketer of Enzyte "natural male enhancement" supplement files for Chapter 11 bankruptcy protection Sept. 16. Cincinnati-based Berkeley Premium Nutraceuticals submits its petition to the U.S. Bankruptcy Court for the Southern District of Ohio declaring about $500 million in unsecured claims owed to its 20 largest creditors, including a $459.5 million forfeiture to the federal government ordered Aug. 27. The bankruptcy petition notes that "the debtor's problems began in approximately 2004" with a Federal Trade Commission investigation into "alleged improper marketing activities," and culminated in August with the criminal sentencing of the firm's founder after convictions of money laundering, conspiracy and fraud (1"The Tan Sheet" Sept. 1, 2008, p. 3)
You may also be interested in...
Pristine Bay LLC, an Ohio real estate development entity, purchases Cincinnati-based Berkeley Premium Nutraceuticals in a bankruptcy auction for $2.75 million, says attorney Kim Martin Lewis. A judge in the U.S. Bankruptcy Court for the Southern District of Ohio, Western Division, approved the sale Dec. 11, but it likely will not close for a few weeks, according to Lewis, a partner in the Cincinnati office of Dinsmore & Shohl. Berkeley Premium filed for Chapter 11 protection in September (1"The Tan Sheet" Sept. 22, 2008, In Brief)
In a decision that will make executives think twice before taking part in making false claims and other deceptive behavior, an Ohio court sentenced 11 former employees of Berkeley Premium Nutraceuticals to prison for conspiracy, fraud and money laundering convictions related to marketing its Enzyte "natural male enhancement" product
The US company is poised to file with regulators in Q2, but is also looking for longer-term competitive advantage in its variant strategy.