Meth Supplement Maker Guilty of Fraud, Money Laundering
David Romeo, principal of a series of dietary ingredient companies in New Jersey has pleaded guilty in connection with the sale of methamphetamine precursor chemicals, a separate scheme to defraud purchasers of dietary supplements and money laundering. “The Department of Justice has increased its enforcement efforts against unlawful dietary supplements in recent years,” a government release says. “This case underlines the need for both consumers and the government to be vigilant in investigating what the American public is ingesting in the guise of weight loss or health enhancement supplements.”
In pleading guilty, Romeo admitted that he was a principal of Global Nutrients, Stella Labs and Nutraceuticals, all of which were New Jersey-based entities engaged in the sale of dietary ingredients intended for use in dietary supplements sold to consumers. The government contends that beginning in 2003, Romeo directed his employees to use cheaper substitutes in place of the dietary ingredients that had actually been ordered by customers, most of whom were companies engaged in production of dietary supplements.
“Romeo admitted that, as part of the scheme, his businesses purported to sell a weight-loss ingredient called ‘hoodia,’” the government says. “Stella Labs and Nutraceuticals represented to consumers that they were selling hoodia that had been sourced from a rare South African plant, Hoodia gordonii. As alleged in the charging document, the substance being sold by Romeo’s business entities was manufactured at a facility in China. As part of his plea agreement, Romeo agreed that the fraud scheme caused a loss of more than $7 million.”
Special agents from FDA’s Office of Criminal Investigations (OCI) investigated the false supplement allegations in the case. “Manufacturing and selling misbranded dietary supplements puts American consumers at risk,” OCI director George M. Karavetsos is quoted in the release as saying. “Our office is fully committed to working with the Department of Justice to protect consumers from public health risks and fraud.”