Included in this section, are some of the fraudulent products and/or services that have been successfully prosecuted. 

THE PARA-ZAPPER

A questionable AIDS treatment involves the use of electronic boxes. Previously promoted as a cure for cancer, the electronic boxes are now being applied to the treatment of AIDS. Makers of these types of devices claim that the AIDS virus and cancer cells can be killed by passing an electrical current or magnetic pulse through the bodies of infected individuals. While laboratory studies show electricity can kill HIV in a test tube, there is no evidence of the same effect in humans. This is an example of how the modern con artist can manipulate science to turn hope into profit.

BOGUS HIV-TESTING KITS

United States District Judge Robert E. Coyle sentenced Larry Greene, a businessman from Los Banos, California, to 63 months imprisonment. On November 18, 1998, the defendant was found guilty by Judge Coyle following a bench trial on 5 counts of mail fraud and 11 counts of wire fraud, involving a scheme to defraud members of the public by fraudulently marketing and selling unapproved and medically useless HIV test kits for home use. Larry Greene's sentence: 63 months incarceration, $1600 special assessment fine, $90 restitution (only two victims requested compensation) and 3 years of supervised release.

OZONE GENERATOR

Kenneth Thiefault and his wife Mardol Barber, were sentenced in a Florida court in 2000 on conspiracy, distribution of an ozone generator, mail fraud, wire fraud & tax violations. The court sentenced Mr. Thiefault to 72 months of incarceration (to be followed by 3 years of supervised release), imposed a $100,000 fine and ordered payment of $14,400 in restitution. The court sentenced Ms. Barber to 33 months of incarceration (followed by 3 years of supervised release) and imposed a $60,000 fine.

T-UP SOLUTION

A federal grand jury in Baltimore has indicted a former Manassas doctor, a Baltimore distributor and an Oklahoma manufacturer for allegedly conspiring to defraud terminally ill cancer patients from around the country by treating them with an unapproved aloe vera solution.

Donald l. MacNay, 62 a former orthopedic surgeon; Allen J. Hoffman, 52, owner of Baltimore-based T-UP Inc., of Lawton, Oklahoma, are accused of promoting the aloe vera solution as a cure for cancer, HIV and AIDS, herpes and various autoimmune disorders.

MacNay lost his license to practice medicine last year after Virginia investigators suggested that the treatments hastened the deaths of four patients. The patients traveled to the Piedmont Orthopedic Clinic in Manassas, where MacNay allegedly charged them thousands of dollars to inject the solution. The intravenous use of aloe vera is not approved by the Food and Drug Administration and is illegal in the United States.

Federal prosecutors allege that Hoffman's company marketed the T-UP solution through mass mailings and attracted customers using an audiotape titled "There is Hope: You Do Not Have To Die!" and a brochure titled "Boost Your Immune System."

According to the indictment handed down this week, T-UP was distributed nationwide from September 1996 through November 1997 at a cost of $75 for a two ounce bottle and about $12,000 for two weeks of intravenous treatments.

Hoffman, MacNay and Henessee are each charged with conspiracy, five counts of introducing an unapproved drug into interstate commerce, four counts of mail fraud and 10 counts of wire fraud. The conspiracy count and each count of mail or wire fraud carries a maximum penalty of five years in prison and a $250,000 fine. Each count of introducing an unapproved drug carries a maximum sentence of three years in prison and a $250,000 fine.

SHARK CARTILAGE CAPSULES AND PERUVIAN PLANT DERIVATIVE

The Federal Trade Commission (FTC) has settled complaints against a company that used the Internet to claim a Peruvian plant derivative could cure diseases like arthritis, cancer and AIDS. Body Systems Technology had sold shark cartilage capsules and a Peruvian plant derivative as treatments for cancer, AIDS and arthritis. A proposed consent agreement would require refunds to purchasers and prohibit unsubstantiated claims.

FTC officials said fraudulent or deceptive medical claims often include assertions that a single drug can cure several illnesses or that the product was developed using "secret" ingredients or "ancient" remedies. Consumers should also be alert to claims that some "miraculous cure" is available from a single source and carries a money-back "guarantee."

IMMUNOSTIM

In 1995, the AHFTFC referred a case to prosecutorial authorities in San Diego which were successful in bringing criminal charges against Dr. Lawrence Taylor and William Stacey for selling "Immunostim." Taylor and Stacey charged patients as much as $7500 each for injections of an illegal and unapproved home-made drug they called "Immunostim." They touted this product as a cure for AIDS and cancer. Laboratory analysis of "Immunostim" showed it was similar to a household drain cleaner in its chemical make-up and would be harmful to one's health if used as directed by the defendants. The Taylor-Stacey Clinic in San Diego was closed, Dr. Taylor lost his license to practice medicine, and both men were convicted and sentenced to serve time in jail and re-pay their victims/patients.

"Operation Cure All"

The Federal Trade Commission and Food and Drug Administration targeted false and unsubstantiated health claims on the Internet through Operation Cure All, a law enforcement and consumer education campaign. In several cases companies were charged with making false and unsubstantiated health and safety claims for a variety of products advertised on the Internet.

Herbal Outlook and Herb Veil 8 

Created by Panda Herbal International, Inc., also doing business as Viable Herbal Solutions, and its owner, Everett L. Farr III (Pennsylvania)

Panda Herbal International and its owner, Everett L. Farr III, marketed and sold "Herbal Outlook", a dietary supplement that contains St. John's Wort, and "Herb Veil 8," a topical ointment. Panda claimed that consumers could safely use Herbal Outlook to treat HIV/AIDS and other diseases and that the products have no known contraindications or drug interactions. This claim is false.

Settlement Details: The settlement prohibits Panda from making unsubstantiated claims about its products. The respondents are required to place a disclosure warning in any advertisement, promotional material or product label about the potentially dangerous interactions of St. John's Wort products with some prescription drugs. Panda must send a notice to all purchasers of Herbal Outlook and Herb Veil 8 informing them of the Commission's settlement, and to offer full refunds upon request to consumers who purchased HerbVeil 8 products during the relevant time period.

St. John's Kava Kava, colloidal silver, and Ultimate II Shark Cartilage Concentrate by ForMor, Inc.,

Also doing business as ForMor International, and its president, Stan Gross (Arkansas)

ForMor, Inc.and its president, Stan Gross, made numerous health-related claims for the products: St. John's Kava Kava, colloidal silver, and Ultimate II Shark Cartilage Concentrate. One label claimed that ingestion of St. John's Kava Kava is effective in the treatment of HIV/AIDS and other diseases. ForMor failed to disclose that St. John's Kava Kava is not compatible with use of protease inhibitors and that serious drug interactions can occur. In addition, ForMor claimed that ingestion of colloidal silver is proven effective in treating over 650 infectious diseases, and that medical tests prove that ingestion of colloidal silver is safe and has no adverse side effects. The complaint alleges that these claims are false or unsubstantiated.

Settlement Details: ForMor agreed to a settlement that prohibits it from making the specific health claims for its products without reliable scientific evidence and from misrepresenting the results of any tests, study or research. The settlement requires the respondents to place a disclosure in any advertisement, promotional material or product label for St. John's Wort products. The settlement requires ForMor to send a notice to all purchasers of St. John's Kava Kava, colloidal silver, and Ultimate II Shark Cartilage Concentrate informing them of the Commission's settlement and to give refunds upon request to people who purchased their products.

Colloidal Silver, Chitosan with Vitamin C, and Ultimate Energizer

Produced by Robert C. Spencer and Lisa M. Spencer, doing business as Aaron Company (Florida)

Robert C. Spencer and Lisa M. Spencer sold three products: Colloidal Silver, a dietary supplement allegedly containing suspended particles of silver, intended to be taken orally for the cure and treatment of more than 650 diseases; Chitosan with vitamin C, a tablet purportedly containing chitin for weight loss; and Ultimate Energizer, a product containing ephedra (ma huang) marketed as a stimulant.

Deceptive advertising contained false and unsubstantiated claims in the text of the site, as well as in the embedded source code or "metatags" for the Web site, that the colloidal silver product has been medically proven to kill over 650 disease-causing organisms and is effective treating diseases ranging from cancer to HIV/AIDS.

Settlement Details: The settlement entered into by the respondents prohibits them from making the types of claims alleged in the complaint without reliable scientific evidence for substantiation. In addition, they are prohibited from misrepresenting the results of any tests, studies or research.

Various electronic therapy devices known as the Black Box; Magnetic Pulser; Magnetic Multi-Pulser; Beck-Rife unit; Portable Rife Frequency Generator; PC-Rife #1; PC-Rife #2; PC-Rife #3

Also a combination of herbal ingredients known as "Miracle Herbs," by Michael Forrest, doing business as Jaguar Enterprises (Texas, North Carolina, Florida)

Michael Forrest, d/b/a Jaguar Enterprises, sold, distributed, promoted, and advertised various products, including various electronic therapy devices known as the Black Box; Magnetic Pulser; Magnetic Multi-Pulser; Beck-Rife unit; Portable Rife Frequency Generator; PC-Rife #1; PC-Rife #2; PC-Rife #3; as well as a combination of herbal ingredients known as "Miracle Herbs," a purported cure for AIDS, cancer and other serious diseases.

The complaint alleges that Jaguar made unsubstantiated claims that their electronic devices will cure or prevent serious diseases, such as AIDS by passing an electric current or magnetic pulse through the body, and that Miracle Herbs is effective in treating cancer and AIDS along with other bacterial and viral infections. It also alleges that the respondent falsely represented that Miracle Herbs has been scientifically proven to be safe and effective and that the electronic devices have been scientifically proven to kill bacteria and viruses and other parasites in the body.

Settlement Details: The proposed settlement would prohibit the respondent from making claims about the health benefits, performance, safety or efficacy of its products without adequate substantiation and prohibit the respondent from misrepresenting the results of any test, study or research. Finally, the settlement requires the respondent to offer refunds to purchasers of the challenged products.

W Black Walnut Tincture, Wormwood Tincture, Cloves Tincture and Zapper Electrical Unit

Produced by Western Dietary Products Co., doing business as Western Herb & Dietary Products, Inc. and its owners Marvin and Miguelina Beckwith (Washington)

The complaint against Western Dietary Products and Marvin and Miguelina Beckwith, the company's owners, charges that the defendants marketed various herbal formulas and herbal cure packages including Black Walnut Tincture, Wormwood Tincture, and Cloves Tincture to treat and cure a variety of diseases including HIV/AIDS; that they marketed the "Zapper Electrical Unit" to treat HIV/AIDS; and that the defendants claimed their herbal products would make surgery and chemotherapy unnecessary for persons with cancer. According to the complaint, all of these claims were unsubstantiated. In December 2001, the company agreed to a stipulated final judgment prohibiting it from making unsubstantiated health claims. A suspended judgment of $50,000 was also ordered, payable if the court finds the company misrepresented its financial position.

BeneFin, SkinAnswer, and MGN-3 by Lane Labs-USA and President, Andrew J. Lane, Inc.

The government's complaint, filed by the United States Department of Justice in the United States District Court for the District of New Jersey, charges the individual defendant and his company with unlawfully promoting and marketing three products for the following diseases:

• BeneFin, which is produced from shark cartilage, as a treatment for cancer and other diseases;

• SkinAnswer, a glycoalkaloid skin cream, as a treatment for skin cancer and;

• MGN-3, a rice-bran extract, as a treatment for cancer and HIV, the virus that causes AIDS

FDA began warning the defendants about the illegal nature of their promotion in June, 1997. Nevertheless, the defendants have continued promoting BeneFin, SkinAnswer, and MGN-3 as remedies for cancer and other diseases through such means as books, articles, Internet web sites, and employee statements. The government's request for a permanent injunction is based on the defendant's unwillingness to comply with the law. The government's action seeks an injunction against the defendants' distribution of these three unapproved drugs.

Colloidal Silver

The FDA and FTC have identified firms that marketed Colloidal Silver as a cure, treatment, or prevention of serious diseases. As part of Cure.All, the FDA identified forty-eight (48) Web sites that made serious drug claims for Colloidal Silver, as well as a number of other products. The FDA sent these Web sites Cyber Letters, untitled letters sent via electronic mail, informing them that their products were being promoted for conditions that may cause the products to be considered drugs and therefore may be in violation of the Federal Food, Drug, and Cosmetics Act. Twenty-seven percent of the sites complied by removing or changing the violative claims.

Rife Frequency Generators and Zappers

Rife Frequency Generators and Zappers are devices that purportedly send different amounts of electrical energy into the body to destroy parasites and/or shatter cells to cure serious diseases, such as cancer and AIDS. As part of "Operation Cure.All," the FDA has taken several actions with respect to these devices:

FDA issued warning letters to several firms selling these devices informing them that they were in violation of the Federal Food, Drug, and Cosmetic Act. FDA also issued several untitled letters to firms questioning the legality of the marketing of these devices. Most of these firms have either removed or modified their Web sites; and FDA placed the Zapper promoted by one foreign firm on automatic detention without physical examination, which will prevent this device from legally entering the United States.