Ohio company owner gets 25 years in fraud case

CINCINNATI (AP) — A business owner convicted of defrauding customers seeking male sexual enhancement products and a variety of herbal supplements was sentenced Wednesday to 25 years in prison.

Steve Warshak, 42, founder of Berkeley Premium Nutraceuticals, also was ordered to pay $93,000 in fines. He was convicted in February on 93 counts of conspiracy, fraud and money laundering.

Federal prosecutors accused the company of bilking customers out of $100 million through a series of deceptive ads, manipulated credit card transactions and refusal to accept returns or cancel orders.

U.S. District Judge S. Arthur Spiegel ordered the company, along with other defendants, to forfeit more than $500 million. He said it was impossible to calculate exactly how much money was lost by customers, so he accepted a figure based on how much Warshak and the company took in.

Berkeley distributes various products alleged to boost energy, manage weight, reduce memory loss and aid sleep. The company's main product, Enzyte, which promises sexual enhancement, has ads featuring "Smiling Bob," a happy man with an exaggerated smile.

"This is a case about greed," Spiegel said as he reviewed the case. "Steven Warshak preyed on perceived sexual inadequacies of customers."

Spiegel said one aspect of the fraud relied on the reluctance of customers to come forward, which would mean admitting they ordered the sexual enhancement pills.