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Enzyte Maker Sentenced to 25 Years in Prison
By Lily Garza
September 10, 2008
After two years in court, the owner of the Berkeley Premium Nutraceuticals, which manufactures Enzyte and other "natural" herbal supplements, was sentenced to 25 years in prison for conspiracy, fraud and money laundering.
Steve Warshak, the founder and CEO of the company, was indicted in September 2006 along with five other executives of the company, including his mother, Harriett Warshak, his sister and her husband. They were accused of mail fraud, bank fraud, and money laundering. The trial began on January 8, 2008 and on February 22, 2008 Warshak was found guilty of 93 counts of conspiracy, fraud and money laundering. On August 27, 2008 he was sentenced to 25 years in prison and ordered to pay $93,000 in fines. His company must forfeit the $550 million that was generated from the fraud. His mother was sentenced to two years in prison and the other defendants all received prison terms ranging from one month to one year.
The company markets several supplements that claim to help boost energy, manage weight, aid with memory loss and sleep. However, the main product the company produces is Enzyte, the "natural male enhancement" drug made famous by the campy commercials featuring "Smilin’ Bob."
Federal prosecutors argued that the company cheated customers out of money through deceptive advertising, misuse of credit card information, and refusal to accept returns or cancellations. Although the ads offered a guarantee of success or a full refund, a former vice president of the company testified that Warshak required customers to produce a notarized document from a doctor proving that they had small genitals to get a refund. He instructed his employees to make it as difficult as possible to receive refunds.
"He said it was extremely unlikely someone would get anything notarized saying they had a small penis," the former VP said in court.
U.S District Judge S. Arthur Speigel, who presided over the case, was especially critical of Warshak.
"This is a case about greed," Spiegel said. "Steven Warshak preyed on perceived sexual inadequacies of customers."
Warshak was given 30 days to tie up personal business before reporting to prison. Speigel has allowed his mother to remain free pending an appeal of her sentence. It is likely she will never actually be incarcerated because she is 75 and has cancer.
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