Hi Tech Pharmaceuticals Employees Admit Importing and Distributing Drugs
August 26, 2008
If you aren’t familiar with the “Hi-Tech Pharmaceuticals” case or haven’t been reading the Supplement Genius blog, click HERE first, then read the following:
Employees once working at Georgia-based supplement company “Hi Tech Pharmaceuticals ” makers of the very popular Fastin , Lipodrene , and Stamina Rx supplements, have now gone to trial and things aren’t looking good for these dudes! The company itself, as well as Jared Wheat, Stephen Smith, Tomasz Holda, and Sergio Oliveira all pleaded guilty to conspire to import and distribute adulterated, mislabeled and unapproved new drugs, and to commit mail and wire fraud. If you’ve been around the bodybuilding industry 
for a while you may recognize Sergio Oliveira as the former owner of BODY International magazine and a guy that’s pushed the supposed “health” benefits GHB, GBL, and other GHB precursors to unsuspecting bodybuilders for years.
United States Attorney David E. Nahmias said of the pleas,
“These defendants set up an offshore manufacturing facility where, in unsanitary conditions, they reproduced leading pharmaceutical products for importation into the United States, all without FDA approval or licensing from the rightful patent holders. Their motive in flouting the law, violating patents and exposing their customers to unknown health risks was greed, pure and simple. I commend the FDA and the DEA for their thorough investigation in this case. The Department of Justice and these agencies will continue to work hard to protect American consumers from such fraudsters.”
FDA Office of Criminal Investigations Special Agent In Charge David Bourne said,
“As in this conviction, the FDA’s Office of Criminal Investigations actively pursues those who deceive the public by manufacturing and selling unapproved and unregulated medications which may pose risks to the health of consumers. We are committed to investigating and preventing those who use trickery and deceit to illegally and unscrupulously sell medications over the internet at the expense of the public health.”
According to Nahmias and the information presented in court: The defendants in this case established a manufacturing facility in a small park in rural Belize. Inside what was essentially a four-room home, the defendants produced unauthorized generic versions of such popular prescription pharmaceuticals as Xanax, Valium , Ambien , Vioxx , Zoloft , Viagra , and Cialis . The manufacturing processes complied with none of the sanitary, hygienic, or quality-control regulations issued by the FDA, nor had the defendants obtained approval from the FDA or licenses from the patent-holders to make such drugs. Nonetheless, the defendants made the drugs and marketed them, primarily via the internet, to customers in the United States and elsewhere. The drugs were made available without prescription and also without disclosure of the unsanitary manufacturing conditions. The defendants realized millions of dollars of sales before the scheme was initially disrupted by Belizean authorities and ultimately ended by U.S. authorities.
United States District Court Judge Jack T. Camp accepted today’s guilty pleas in federal court in Newnan. All defendants pleaded to conspiring to violate federal prohibitions against mail and wire fraud and the importation and distribution of adulterated, unapproved, and mislabeled drugs. This conspiracy offense carries a maximum penalty of five years in prison and a maximum fine of $250,000 . The company itself will face a maximum of five years on probation and a fine of the greater of $500,000 or double the fraud amount. Sentencing for the defendants is now set for October 21, 2008. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines.
SOURCE: NPI Center
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10 Responses to “Hi Tech Pharmaceuticals Employees Admit Importing and Distributing Drugs”
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The country of Belize, much like India I believe, does not recognize USPTO world pharmaceutical patents granted to pharmaceutical companies. So producing generic versions of Cialis, Viagra, etc. does NOT legally require the approval of US patent holders or the FDA in Belize.
I followed the anabolic steroid products from Planet Pharmacy when they were on the market; all reports from SRCS showed them to be free of impurities and accurately dosed which was uncommon among most of the anabolics that made their way to the black market. And from my correspondences with Planet, the guys were obsessed with quality control.
There is a government bias against ALL non-FDA approved medications such as any product imported from outside the US or any products from compounding pharmacies (which are all non-FDA approved).
Basically, if the big pharm companies don’t make it and sell it in the US, then the government doesn’t like it. Not that I’m suggesting “corporatocracy” or anything like that.
[...] However, the FTC will get involved right away if a fraud is involved such as was seen in the recent Hi Tech Pharmaceuticals [...]
Very nice site!
Well guys i visited this site Hi Tech Pharmaceuticals was using as a laboratory in Belize. It was a dump. I worked with Hi Tech at the norcross office in Atlanta, Ga. for 2 1/2 years The company motto was, “It is better to ask for foregiveness then to ask for permission”. Sergio Olivares and Jared Wheat made millions through illegal activities. Spiking Herbal products with perscription drugs was the norm for those two. Read the FDA, DEA,FTC and U.S. Court filings. Hell while Jared was in jail he was allowing us to sell ephedrine group alkaloids products out of a storage facility after the August 2006 ban went into effect. Now Jared is sueing me in Federal court for Trademark Infringement after he took in $100,000’s of dollars in after the ban sells of ephdrine group alkaliod products. If you know of any stores in the country selling lipodrene with ephedrine group alkaloids in it, the “original version” please contact me. Especially if it was purchased from Hi Tech or New you. 310-292-5864
I ordered some fastins under the impression they were phentermine. When I got them they are just caffeine pills that look like phentermine. I just did this 3 weeks ago, why are they still in business?
[...] CEO Jared Wheat (pictured above) was sentenced to 50 months in jail and his co-defendants must also relinquish $3 [...]
These herbal supplements are still being promoted…I just got a case load from a friend in Atlanta. On closer inspection I dumped i all in the trash
Well guys, I hate to break it to you, but Hi Tech survived and is doing just fine. I am one of the Owners you guys are hating on. If you’d like to have an intelligent conversation about any of the issues you act as though you know so much about feel free to email me. Jared, Myself, Sergio, and Tom are all at Hi Tech and doing what we do best…make the best products in the industry. We broke no laws in Belize, nor here in the States. Ask yourself this…If all the rumors were true…Why are we in business? The truth is people like you like to keep the rumor mill going. You should stick to Myspace of Facebook. Executive Vice President Stephen Smith
Judge Jack T. Camp sentenced WHEAT to 4 years, 2 months in federal prison, and
also sentenced his conspirators: DAVID BRADY, 42, of Pinehurst, North Carolina (32
months in custody, and ordered to forfeit $1.7 million); STEPHEN SMITH, 40, of Duluth
(27 months); SERGIO OLIVEIRA, 48, of Hoschton, Georgia, (27 months); and TOMASZ
HOLDA, 45, of Duluth, Georgia (24 months).
If no laws were broke then why were all of you found guilty and serving time. Stephen Smith must be typing from his cell.