enzyte being investigated for mail fraud

from wcpo

Feds Raid Herbal Supplement Company

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Berkeley Nutraceuticals

Enzyte

Reported by: Tom McKee
Web produced by: Mark Sickmiller
Photographed by: 9News
Last updated: 3/17/2005 6:19:04 PM
A Tri-state supplier of dietary supplements is under investigation for possible mail fraud.

That's why federal agents executed search warrants on three locations of Berkeley Premium Nutraceuticals Wednesday.

The Cincinnati-based company is known for making and marketing several supplements, including Enzyte, which claims to provide "natural male enhancement."

The product is best known for its television ads featuring "Smiling Bob".

Other Berkeley Nutraceuticals products include Avlimil and Altovis.

Sources tell 9News the investigation centers on the company's "Auto Ship" program, and the focus is on President Steve Warshak, his sister Sue Cosman and her husband.

The Better Business Bureau says it has received 4,300 complaints about the "Auto Ship" policy in the past three years.

"We had met over the years with this company on numerous occasions explaining to them that the "auto ship" program is a problem," said Jocile Erlich, the BBB's CEO. "And, it's easily fixable, but they didn't want to make the change," she said.

"Smiling Bob" commercials continued, "Enzyte" and other supplements were mailed across the country, and "auto billing" apparently continued in one form or another.

So, on Wednesday, U.S. Postal Inspectors, the FBI, FDA and IRS raided these three Berkeley buildings:

- The headquarters at 1661 Waycross Road in Forest Park
- A product-filled warehouse at 5462 Duff Drive in West Chester Township
- A marketing/sales office at 2500 West Clifton Avenue in Clifton Heights.

The warrants were executed starting at 9 a.m.

Surprised employees were sent home for the day.

"You think you trust somebody when you come into a company. You want them to trust you and you want to trust them, but when things like this happen it makes it kind of hard," said a Berkeley employee.

So far there are no charges, no arrests and no indictments, just an ongoing investigation.

"We received information that there could be evidence of criminal activity in the location, and for that reason we're executing a search warrant," said FBI Special Agent Michael Brooks.

So far, there's been no comment from Berkeley officials.

Sites raided Wednesday should be open again for business Thursday.