A federal jury today convicted the president of Berkeley Nutraceuticals, Steve Warshak, on charges of conspiracy to commit mail fraud, bank fraud, and money laundering. Warshak’s mother, Harriett Warshak, was also convicted. They now face more than 20 years in prison, and the company could be forced to forfeit tens of millions of dollars. Seven former company officials pled guilty to conspiracy charges before the trial began.
The company bilked thousands of customers out of millions of dollars using fake product warranties, fake medical spokesmen, and fake credit card transactions. The company’s main product, Enzyte, was advertised as a “natural male enhancement” and was hawked on TV ads by a constantly grinning character nicknamed Smiling Bob.
We suspect that Bob isn’t smiling anymore.
Source: AP Wire, February 22, 2008: