CINCINNATI – A man convicted of defrauding customers seeking male sexual enhancement supplements took advantage of people who were reluctant to publicly complain after ordering the products, a federal judge said Wednesday.
Steve Warshak, founder and president of Berkeley Premium Nutraceuticals, listened as U.S. District Judge S. Arthur Spiegel recounted the case prior to a sentencing hearing in which Warshak faces more than 20 years in prison and possible forfeiture of cash, homes and cars.
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. “Steven Warshak preyed on perceived sexual inadequacies of customers.”
Spiegel said the fraud relied on the reluctance of customers to come forward, which would mean admitting they ordered the sexual enhancement pills and other products.
Warshak was convicted in February of bank fraud, money laundering and conspiracy to commit mail fraud.
Federal prosecutors say he bilked customers out of $100 million through deceptive ads, manipulated credit card transactions, and refused to accept returns or cancel orders.
The company also distributes herbal products alleged to boost energy, manage weight, reduce memory loss and aid restful sleep. But its main moneymaker is Enzyte.