Drugs

FDA Case Leads to Guilty Verdict in Illegal Ephedrine Marketing

An FDA Office of Criminal Investigations case has led to a guilty verdict against Chenhsin Chan, also known as Paul Chan, in connection with his online marketing and sale of dietary supplements containing ephedrine in violation of a federal ban. Chan was found guilty in the Northern District of Georgia of 30 felony counts following a three-day jury trial, according to a Justice Department release.

“Ephedrine has been banned for use in dietary supplements for over a decade now,” U.S. Attorney John Horn is quoted in the release as saying. “Chan, however, continued to market and sell unlawful products to online customers, exposing them to an unreasonable risk for illness or injury. He willfully broke the law, and his conviction should send a message to those who seek to endanger the online marketplace with unsafe products.”

According to the government, from 2005 through 2012, Chan marketed and sold dietary supplements on his Web sites that contained ephedrine alkaloids. He was warned by FDA investigators and others that it was illegal to sell ephedrine alkaloids, but he continued to do so. Chan’s Web sites also made materially false and misleading claims concerning the use of ephedrine, such as that ephedrine has been approved by FDA for treating diseases, and that ephedrine has never been illegal, the government says.

The jury in the trial also agreed Chan should forfeit assets he purchased with proceeds from the crimes, including real property in New York that had been purchased for $950,000, a Mercedes Benz purchased for over $50,000, and a Lamborghini purchased for about $117,000, as well as over $666,000 in proceeds from the crimes.

Sentencing for Chan has not yet been scheduled.

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