International Law

What is New with Anti Aging Products?

Well according to the Southern District of Florida's US State Attorney

"Defendants William Chappie and Joseph Wentz, both of Broward County, Florida, were sentenced today by U.S. States District Court Judge William P. Dimitrouleas to 96 months and 36 months in jail, respectively, on charges of conspiracy to commit wire and mail fraud, regarding the introduction of adulterated and misbranded devices into interstate commerce in violation of the Federal Food, Drug, and Cosmetic Act.

According to the Superseding Indictment and other court documents, the defendants sold business opportunities or dealerships in the Youth Light and Age Eraser devices, allegedly anti-aging Intense Pulse Light photorejuvenation devices.

In the promotional and marketing materials, the defendants made false medical claims about the device?s ability to erase wrinkles, age spots, sun damage, rosacea, and improve collagen.

Claims of this nature are medical, and the devices, therefore needed FDA-clearance prior to any marketing.

The defendants sold the devices to dealers, and promised that the devices would be placed in top salons and spas, where treatments could be sold for $100 each.

The defendants used paid references to sell the business opportunities.

The defendants made many false representations and statements about the true identity of the persons involved with the business, the expected profits, the true capabilities of the devices, the services provided to the dealerships, the authenticity of the references, and the prohibition of the principals in the business from selling business ventures.

Both William Chappie and Joseph Wentz were banned under a prior federal district court order, and prohibited from engaging, participating, or assisting in any manner or in any capacity whatsoever, in the promotion, marketing, or sale of any business venture, whether directly or through an intermediary."

This is an interesting business opportunity fraud, one which was mirrored by the Revitalite Laser or Soft Laser Scam.

Note the typical elements of the business opportunity fraud:

1. Individuals using fake names.
2. Lies about earnings opportunities.
3. What the devices could actually do.
4. Services provided.
5. Fake Testimonials.
6. Individuals who had already been banned by the FTC from selling biz ops.

Both Chappie and Wentz had been banned by the FTC in 1996 from selling biz ops.

"The FTC alleged that, in the course of selling their pre-packaged businesses for between $8,000 and $80,000, the defendants made false earnings and success claims, had one of their employees pose as an independent reference for potential investors to call, and used a variety of other deceptive practices.

Note the similarities to the Anti-Aging Business Opportunity Fraud, as described the the W5 team at CTV.

Georges MacDonald, after the Revitalite business opportunity fraud, then turned around and committed the Soya Delight biz op fraud.

If anyone has information about George MacDonald or any of the salesmen, please give me a call or email.

Full post as published by Misleading Advertising Law on February 26, 2008 (boomark / email).