Who's Smiling Now? Enzyte Scammer Gets 25 Years In Prison
Steve Warshak, founder of the company responsible for "Enzyte," has been sentenced to 25 years in prison and ordered to pay a fine of $93,000, says the AP. U.S. District Judge S. Arthur Spiegel also ordered the company, along with other defendants, to forfeit more than $500 million that it bilked from consumers.
According to federal prosecutors the scam involved preying on customer's reluctance to admit that they had ordered the "male enhancement" pills. Customers ordered the pills, but were unable to cancel or get a refund. A former VP of the company testified that Warshak required customers to provide notarized documents from a doctor proving that they had small genitals in order to get a refund.
If customers complained, he said, employees were instructed to "make it as difficult as possible" for them to get their money back. In some cases, Teegarden said, Warshak required customers to produce a notarized statement from a doctor certifying Enzyte did not work.
"He said it was extremely unlikely someone would get anything notarized saying they had a small penis," Teegarden said.
The judge had strong words for Warshak:
"This is a case about greed," Spiegel said as he reviewed the case. "Steven Warshak preyed on perceived sexual inadequacies of customers."
Warshak's 75-year-old mother was also sentenced to jail time, but it's unlikely that she will serve it because she's 75 and has cancer. Meanwhile, Warshak has 30 days to report to prison.
Ohio company owner gets 25 years in fraud case [Associated Press]
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Comments:
@HighontheHill: A satisfied Enzyte customer who just wants to show his appreciation for the product to the creator of that product?
@IphtashuFitz:
No kidding. I had heard quite some time back when all this started that they had pulled the Enzyte commercials, but I started seeing them again on Spike TV, I think. As far as I'm aware, they're still running those commercials (usually in pairs).
@digital504: Yeah, that's what I thought. It's practically an invitation for him to flee the country.
What worries me most is, if you visit their website (which is still functioning, btw) you can see a slew of other "products" for men and women which are supposed to do all sorts of things from alleviate stress, to help with weight loss and more.
Why are these still being advertised if its all a crock?!
@finite_elephant: That is good because we all know it is impossible to get in or out of this country without a passport.
@Edge231:
I couldn't agree more. There seems to be a large disparity between the incarceration of men and women in this country. They don't hesitate to lock up 70 year old mafia Dons with cancer...
Male enhancement? What the hell does that even mean? Hey guys, I've got your male enhancement right here.. it's called confidence. If your significant other doesn't appreciate you for who you are, it's time to kick that trash to the curb.
But 25 years and $93,000 in fines seems trivial. I bet he gets out early for good behavior, and $93,000 is chump change for him. The article states that his scam generated over $100 million, which is probably tucked away in an overseas bank.
@nfs: FTA, mom was convicted on conspiracy and other charges. She begged the court to let her go since she only has a little bit of time left and she has grandchildren she wants to spend time with. Pfffft... if you can't do the time, don't do the crime lady!
The commercials have been on the air in the Chicago market for over 6 months.
This was after Warshak admitted in open court that the product was worthless.
I wonder who at his company was making media buys AFTER he was charged, let alone admitted the product was a scam.
I wonder what liability a television station has for broadcasting these ads? [While a TV station doesn't have an obligation to investigate advertising claims, we have stations who have reported on the court trial, and subsequently broadcast more ads!] Seems to me that makes give them some share liability for the ongoing scam.
Reporting to prison in 15-30 days is INCREDIBLY common actually. Almost all cases have it take place. You can try to flee, but you're unlikely to be successful. They have very good photographs of you, all your bank information, and a nice big bond you've forfeited to spend on finding you.
Almost all non-violent offenders report to prison for their sentences without being forcibly taken there upon conviction. It is helpful in not having their kids end up homeless among other things.
Also if this guy fled, it'd make cable news (if it's a slow day). Try being a fugitive with your name and face on TVs in every bar and motel you walk into.
They also really need to go after these guys for selling a totally fraudulent product, in addition to all the other scammy crap they pulled. Amazing that the government STILL allows this stuff to be aired, when it's advertising an outright fraud. Would I be allowed to run a Nigerian prince scam by advertising on TV constantly, and continue doing it even after being arrested?
Amazing that people fall for this. And it must be a LOT of people, too, for them to be able to afford their advertising budget.
It was always tremendous fun looking for all the phallic symbols in those corny smiling bob commercials. But really, with commercials that cheesy, you'd have to think that it's a fraud.
Why again isn't the mother going to jail? Because she's 75? Really? So, when I get that old, I can just go defraud anybody I want to and get off because I'm old? Hot damn, I can't wait!
"Next target: "free*"creditreport.com. Burn, motherf#$%er, burn. I HATE your god-awful commercials.
I know! What the fug is wrong with that guy? Didn't he get the point after "some hacker stole [his] ID"? What about his lovely wife's bad credit? He should have been much more prepared when he bought that clunker (the compact car, not the wife).
@Front_Towards_Enemy: Ironically, it's a brilliant move considering the people who watch NASCAR would respond to that message.
Reminds me of Lock Stock and Two Smoking Barrels: Go here [www.script-o-rama.com] and search on "arse ticklers"
We need a stronger FTC
I'm not defending what the guy did, and I think the financial consequences should be considerably more drastic. But 25 years in prison? Daaaaamn, that's a long bit. Even if he does half of it, he's wasted away for over a decade for preying on phallic insecurities. I mean, the guy isn't a violent criminal or anything.
In many states 25 years is often the sentence for first degree murder. Rapists and other violent criminals can usually agree to pleas for less than 10. In light of that, this sentence seems a bit drastic.
Of course that is nothing compared to our country's draconian belief in putting drug users behind bars, but I guess that's for another thread.
@Rhayader: It's only 18.3 days in prison for every million dollars (of $500 million) that he was proven to have scammed. Seems pretty reasonable to me. Would you go to jail for 18 days for a million bucks?
@johnva: Yeah, I mean if you break it down like that it sort of puts it in perspective. Still though, I find it hard to condone forcing someone to rot away for a large percentage of his life as a result of a non-violent crime.
I would much rather see him forced to return every last cent he owns. In my mind, a financial crime deserves a mostly financial punishment. Again, I am not claiming he is the good guy here, but he is also not a murderer.
@johnva: If he scammed $1m he would be going for a few years, but I don't see how 25 years is going to make it any better. Jails are crowded enough, and while the guy is certainly a jackass, 25 years is more than you're going to get in most cases for murder/child molestation/etc. I'm sure he'd learn his lesson in 2 or 3.
I'm just glad they handed down a sentence with lots and lots of jail time. Jail doesn't really deter low-level criminals who have nothing to lose anyway, but Mr. Warshak was probably living it pretty large when they dragged him off to jail. Granted, he'll have it very easy in jail compared to say a drug dealer or a mugger (white-collar crime jails are notoriously soft) but the fact that he'll be out of action for over two decades will hopefully convince other "male enhancement" scammers to seek a new line of work.
At least until they let him out for "good behavior" or someone writes him a pardon in exchange for some "male enhancement" pills.
If there was any product at all that worked to make your penis bigger, you can bet everyone would know about it, most guys would have it, and people who could afford it would be showing off their comedically oversized...things...on national TV.
I think a shorter prison time and larger fine makes more sense.
The LA times says a year in prison costs about $31,000 a year. So if he only serve half his sentence, he will cost taxpayers $387,500.00 to punish. [Actually much higher, when you add in the costs of the judicial process]
His fine doesn't cover his prison costs or the costs or prosecution.
Am I the only one cynical about the supposed $500,000 million that will be recovered. How much will ever be collected and if even half gets in victims hands I'll be suprised. I bet the settlement will make victims jump through as many hoops as Enzyte's 'customer service' department.
Of course jumping through hoops won't be that difficult, since the victims clearly don't have giant penises to interfere.
These scammy commercials piss me off.
VIACOM pisses me off for airing them on all their programs. Enzyte, extenze, lipozene, direct buy.........But VIACOM has no problem crying foul - crying "oh you're ripping us off - whenever someone uploads a clip of their shows to youtube.
VIACOM knows these are scams.... christ the government sued enzyte months ago for being scammy, did that stop VIACOM from airing those commercials during The Daily Show and The Colbert Report? Fuck no it didn't.
When we some lawyer realize there is a fortune to be made from suing VIACOM for all the consumers they have allowed to be ripped off by LENDING AN AIR OF LEGITIMACY TO THESE ADVERTISERS BY ALLOWING THEM TO AIR DURING THEIR PROGRAMS.


























Can those Extenz guys be next? Although any "enhancement" product that has the same name as a David Cronenberg movie should be enough of a warning to keep people away.