Ordered to pay the estimated proceeds from their conspiracy, fraud and money laundering crimes were Steven E. Warshak, 42, president and owner of Berkeley Premium Nutraceuticals and TCI Media Inc.; his mother, Harriet, 75; Paul J. Kellogg, 41, in-house lawyer of Berkeley; and Steven P. Pugh, 38, a warehouse manager of Berkeley.
The jury convicted the four on Feb. 22 after finding them guilty of illegally earning millions of dollars from the sale of Enzyte over a five-year period.
According to a press statement of the Justice Department, the four shipped the dietary supplements to customers who did not order the product, billed customers through their credit cards without authorization, misrepresented their business activities to their customers and the merchant banks they worked with, and laundered their earnings through personal bank and investment accounts.
The jury also found that Berkeley Premium Nutraceuticals and TCI Media posted false advertising on Enzyte and money-back guarantees as well as prevented customers from canceling orders and getting refunds.
Aside from the $33 million restitution, the four executives are facing a monetary judgment of $100 million in their final sentence.
