Press Release
BROWARD COUNTY DEFENDANTS SENTENCED ON $6 MILLION FRAUDULENT BUSINESS OPPORTUNITY SCHEME
January 11, 2008
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, and David Bourne, Special Agent in Charge, Office of Criminal Investigations, U.S. Food and Drug Administration, announced today that 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.
Both defendants were ordered to pay restitution, jointly and severally, in the amount of $6,425,815.73. In addition, the Court ordered the criminal forfeiture of real property in Pompano Beach, Florida, owned by defendant William Chappie.
Mr. Acosta commended the investigative efforts of the U.S. Food and Drug Administration, Office of Criminal Investigations. This case is being prosecuted by Assistant United States Attorney Laurie E. Rucoba.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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