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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]

Warshak could face more than 20 years in prison, while his company, Berkeley Premium Nutraceuticals, may have to "forfeit tens of millions of dollars," according to the Associated Press. We don't have any info on the sentence his mom could receive.

Prosecutors claimed customers were bilked out of $100 million through a series of deceptive ads, manipulated credit card transactions and the company's refusal to accept returns or cancel orders. They said unauthorized credit card charges generated thousands of complaints over unordered products.

(Thanks to Ken!)

"Enzyte Maker Found Guilty of Fraud" [AP]

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Previous articles about Enzyte and Steve Warshak

James Teegarden Jr., the former vice president of operations at Berkeley Premium Nutraceuticals, explained Tuesday in U.S. District Court how he and others at the company made up much of the content that appeared in Enzyte ads.

He said employees of the Forest Park company created fictitious doctors to endorse the pills, fabricated a customer satisfaction survey and made up numbers to back up claims about Enzyte's effectiveness.

"So all this is a fiction?" Judge S. Arthur Spiegel asked about some of the claims.
"That's correct, your honor," Teegarden said.

When customers ordered a product, the company's goal was to keep charging their credit cards for as long as possible, Teegarden said.

He said first-time customers were automatically enrolled in a "continuity program" that sent Enzyte to their homes every month and charged their credit cards without authorization.

"Without continuity, the company wouldn't exist," Teegarden said. "It was the sole profit of the business."

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.

Former exec: 'Enzyte' ads all lies [Cincinnati Enquirer via Fleshbot (NSFW)]

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"Jury Selection For Enzyte Trial Started Today"

The company, based in Forest Park, is best known for the male enhancement supplement Enzyte and it's spokesperson, "Smiling Bob".

The 84 page indictment accuses the company of lying about the effectiveness of its products and side effects, and well as its money-back guarantee. The company owners are also accused of making millions of dollars by charging customers credit cards without their approval. The indictment claims customer loss tops $100 million dollars.

"Company Behind "Smiling Bob" On Trial" [WKRC-TV Cincinnati]
(Thanks to David!)
(Photo of vengeful lion: Getty)