Cincinnati- The march to prison continued today for former executives and employees of Berkeley Premium Nutraceuticals.

Four former employees were sentenced to prison this morning and several more are expected to learn their fate this afternoon in U.S. District Court.

All four have admitted involvement in the massive fraud scheme that federal prosecutors say netted the herbal supplement company more than $500 million.

Steve Warshak, founder of the Forest Park company, was sentenced Wednesday to 25 years in prison.

The sentences handed down Thursday were much lower – each defendant got one year in prison – because they admitted their guilt, cooperated with authorities and helped the government convict Warshak.

Most of the convictions relate to false claims and fraud from the sale of Enzyte, the company’s most popular supplement. The pills were billed as a sexual aid for men and were marketed on TV in ads featuring a grinning character known as Smilin’ Bob.

Prosecutors said all of the cooperating defendants offered help that was crucial to unraveling the fraud, which included lying to banks, laundering money, hiding profits and misleading thousands of customers.

But Judge S. Arthur Spiegel said all still deserved prison time because they knew, or should have known, what they did at Berkeley was wrong.

“They thumbed their noses at the law and went their merry way, grabbing anything they could get,” Spiegel said.

At least 10 Berkeley employees and associates face potential prison time because of fraud, money laundering and conspiracy charges. The judge made clear Thursday that those who cooperated would get a substantial break on their sentence.

If they had not agreed to help authorities, the cooperating defendants could have faced 20 years or more.

Those sentenced Thursday include Warshak’s sister, Sue Cossman, and her husband, Greg, the company’s former president. Former Chief Operating Officer Jim Teegarden and former sales director Sally Kinmon also were sentenced.

In addition to the one-year sentence, the Cossmans forfeited a $1 million gift from Warshak. They ended up losing even more because they paid $300,000 in taxes on the gift after receiving it – money they won’t get back even though they lost the $1 million.

All of the cooperating defendants apologized for their involvement in the scheme.
“I am deeply ashamed of my actions,” Teegarden said.

Sue Cossman said her decision to cooperate was especially difficult because it meant testifying against her brother and her mother, Harriet Warshak, who also worked at the company and received a two-year sentence Wednesday.

“I love my brother very much,” she said. “This is one of the hardest things I ever had to do.”

After he was sentenced Wednesday, Warshak said he hoped the judge would show leniency to all of the other defendants, even those who testified against him.

“There has been enough pain and anguish for all involved,” he said. “I don’t wish ill will upon anyone.”