Supplement company features 'Smiling Bob' ads
By Dan Sewell
ASSOCIATED PRESS
CINCINNATI - The maker of dietary supplements that claim to improve everything from sexuality to memory defrauded banks and thousands of customers of at least $100 million, federal authorities say.
A federal indictment names Berkeley Premium Nutraceuticals, its owner and president, Steven 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 yesterday.
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.
The company 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.
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