Metabolife Founder Indicted
A federal grand jury has returned an eight-count indictment
against San Diego-based Metabolife International, Inc., and
its founder, Michael J. Ellis.
The indictment charges both defendants with six counts of
making false, fictitious and fraudulent representations to
the Food and Drug Administration (FDA), and two counts of
corruptly endeavoring to influence, obstruct and impede proceedings
concerning the regulation of dietary supplements containing
ephedra being conducted by the FDA.
Until the FDA banned the sale of ephedra in the United States
in 2003, Metabolife was one of the largest retailers of dietary
supplements in the United States, based largely on sales of
its ephedra-based product, Metabolife 356.
Metabolife and Ellis are charged with falsely representing
a number of different material facts to the FDA in letters
dated April 17, 1998 and February 9, 1999. These representations
included false statements by the Defendants that “Metabolife
ha[d] never received one notice from a consumer that any serious
adverse health event has occurred because of the ingestion
of Metabolife 356” and that the company had a “claims-free
history,” according to United States Attorney Carol
C. Lam.
"It is never acceptable for corporations to lie to regulatory
agencies, but it is particularly egregious when those lies
threaten the public health," Lam said.
"One of FDA's highest priorities involves our responsibility
to ensure that information about products we regulate is truthful
and not misleading, because people depend on that information
to make informed choices," said Acting FDA Commissioner
Dr. Lester M. Crawford. "We will pursue to the full extent
of the law those who would seek to mislead consumers by providing
false information or impeding investigations of risky products."
The defendants are scheduled to be arraigned before Magistrate
Judge Louisa Porter in San Diego on Tuesday, July 27, 2004
at 10:30 a.m.
Each charge carries a potential penalty of five years in
prison and a $250,000 fine.
Source
Consumer Affairs .com
July 22, 2004
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