Thursday, August 28, 2008

Enzyte Founder Sentenced to 25 Years Hard Time

As reported on the WSJ Law Blog, the founder of Berkeley Premium Nutraceuticals's subsidiary Enzyte, Steve Warshak, was sentenced to 25 years in prison for defrauding its less endowed opportunistic consumers. Hedging its brand on promised "strength" and "power," Enzyte used a fictional happy character named "Bob" to hawk natural male enhancement products during late night television for years.

On Wednesday, however, U.S. District Judge S. Arthur Spiegel sentenced Steve Warshak to 25 years in prison after he was convicted in February on 93 counts of conspiracy, fraud and money laundering after the prosecution presented a story of deceptive ads, manipulated credit card transactions and refusal to accept returns or cancel orders. The sentence closely mirrors those received by WorldCom’s Bernie Ebbers and Enron’s Jeff Skilling. In addition to Warshak's prison sentence, Judge Spiegel also ordered both the company and Warshak to forfeit more than $500 million that the company's hard earned sales. .

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