Raw Deal Enforcement Case Hailed

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FDA deputy commissioner for global regulatory operations and policy Howard Sklamberg and deputy commissioner for foods and veterinary medicine Michael Taylor say that a fall 2015 enforcement action against Raw Deal, Inc., a New Jersey dietary supplement manufacturer illustrates the agency’s “careful field work, close teamwork, and skillful investigation that are hallmarks of FDA’s criminal enforcement.” Writing in an FDA Voice blog post, the two said that Raw Deal owner and president Barry Steinlight pled guilty in 9/2015 to one count of conspiracy to commit wire fraud involving a scheme to introduce adulterated and misbranded products into interstate commerce. He was sentenced to 40 months in prison and ordered to forfeit $1 million in profits from the scheme.

On 12/21, the two write, the company’s former executive vice president, Catherine Palmer was sentenced to one year probation and a criminal forfeiture of $100,000 after pleading guilty to obstructing an FDA investigation.

“The convictions arose from illegal practices by the firm, which included manufacturing adulterated and misbranded products by using fillers to cut costs, reusing returned and contaminated products, and falsifying batch records and certificates of analysis,” Skalmberg and Taylor wrote. The post reviews four years of investigations and enforcement activities that were undertaken by the agency before criminal charges were filed by the Justice Department.

“This case is just one example of FDA enforcement in action,” the post says. “Companies are given the opportunity to correct violations, but if they don’t, there are serious consequences. Indeed, during the past two years, FDA criminal enforcement has resulted in 407 cases opened, 348 arrests, 305 convictions, and $694,131,579 in fines and restitutions.”

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