Metabolife Officials Suspected of Massive Tax Evasion
Stephen Barrett, M.D.
The owners of Metabolife International, the leading marketer
of ephedra-containing "diet pills," are under investigation
for massive tax evasion. According to an affidavit signed
in 2002 by an Internal Revenue Service criminal investigator:
Michael Blevins, Michael Ellis, and William Robert Bradley
skimmed millions of dollars in cash from the company and hid
money in offshore accounts.
Metabolife failed to account for $93.7 million in income between
1996 and 1999, when the company sold Metabolife 356 through
a network of independent distributors who were encouraged
to pay cash for wholesale supplies of the product.
Former employees said the company maintained multiple sets
of books to disguise its true financial activities, as well
as "off-the-books" bank accounts that helped disguise
the skimming activities.
In September 2003, Blevins (who was convicted in 1988 of conspiracy
to manufacture and possess methamphetamine with intent to
distribute) and his his wife Danica were charged with conspiracy
to illegally obtain firearms and three counts of illegally
possessing firearms. [USAO news release, Sept 15, 2003] The
tax investigation affidavit was unsealed in November in connection
with the firearms case. No tax-evasion charges have been filed,
but about a week after the affidavit was unsealed, Metabolife's
outside accountant Michael Compton was found dead in his home,
apparently of a self-inflicted gunshot wound. [Crabtree P.
Documents
link Metabolife, offshore banks: Kickbacks also paid, affidavit
alleges. San Diego Union-Tribune, Dec 2, 2003]
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