Skip Navigation
USAO Home Page

Case Information

Justice For All Act

Federal crime victims have the following rights, as set forth in the Justice for all Act of 2004, 18 U.S.C. § 3771:
(1) The right to be reasonably protected from the accused.
(2) The right to reasonable, accurate, and timely notice of any public court proceeding or any parole proceeding involving the crime, or of any release or escape of the accused.
(3) The right not to be excluded from any such public court proceeding, unless the court, after receiving clear and convincing evidence, determines that testimony by the victim would be materially altered if the victim heard other testimony at that proceeding.
(4) The right to be reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding.
(5) The reasonable right to confer with the attorney for the Government in the case.
(6) The right to full and timely restitution as provided in law.
(7) The right to proceedings free from unreasonable delay.
(8) The right to be treated with fairness and with respect for the victim's dignity and privacy.

The United States Attorney’s Office for the Southern District of Ohio is committed to protecting the rights of crime victims. If you are a victim of an offense being prosecuted by our office, our Victim/Witness Unit will make sure that you are notified of important stages of the case to help you exercise your rights.

SPECIFIC CASE INFORMATION INVOLVING PURCHASERS OF ENZYTE, AVLIMIL AND OTHER PRODUCTS DISTRIBUTED BY BERKELEY PREMIUM NUTRACEUTICALS

UNITED STATES v. GREG J. COSSMAN

Case No. 1:06-CR-0014

Senior Judge S. Arthur Spiegel

January 25, 2006 - One Count Information filed charging defendant with Conspiracy to Commit Mail and Wire Fraud in violation of 18 U.S.C. §1349.

February 16, 2006 - Defendant was arraigned, entered a plea of guilty, and was released on Own Recognizance Bond. Awaiting Sentencing.

The lead prosecutor for this case is Assistant United States Attorney Anne L. Porter.

UNITED STATES v. MICHAEL V. WAGNER

Case No. 1:06-CR-0015

Senior Judge S. Arthur Spiegel

January 25, 2006 - One Count Information filed charging defendant with Conspiracy to Commit Mail and Wire Fraud in violation of 18 U.S.C. §1349.

March 2, 2006 - Defendant was arraigned, entered a plea of guilty, and was released on Own Recognizance Bond. Awaiting Sentencing.

The lead prosecutor for this case is Assistant United States Attorney Anne L. Porter.

UNITED STATES v. JAMES G. TEEGARDEN, JR.

Case No. 1:06-CR-0016

Senior Judge S. Arthur Spiegel

January 25, 2006 - One Count Information filed charging defendant with Conspiracy to Commit Mail and Wire Fraud in violation of 18 U.S.C. §1349.

February 16, 2006 - Defendant was arraigned, entered a plea of guilty, and was released on Own Recognizance Bond. Awaiting Sentencing.

The lead prosecutor for this case is Assistant United States Attorney Anne L. Porter.

UNITED STATES v. SUSAN COSSMAN

Case No. 1:06-CR-0017

Senior Judge S. Arthur Spiegel

January 25, 2006 - One Count Information filed charging defendant with Conspiracy to Commit Mail and Wire Fraud in violation of 18 U.S.C. §1349.

February 16, 2006 - Defendant was arraigned, entered a plea of guilty, and was released on Own Recognizance Bond. Awaiting Sentencing.

The lead prosecutor for this case is Assistant United States Attorney Anne L. Porter.

UNITED STATES v. SHELLEY B. KINMON

Case No. 1:06-CR-0028

Senior Judge S. Arthur Spiegel

February 14, 2006 - One Count Information filed charging defendant with Conspiracy to Commit Mail and Wire Fraud in violation of 18 U.S.C. §1349.

February 16, 2006 - Defendant was arraigned, entered a plea of guilty, and was released on Own Recognizance Bond. Awaiting Sentencing.

The lead prosecutor for this case is Assistant United States Attorney Anne L. Porter.

UNITED STATES v. WILLIAM BERTEMES

Case No. 1:06-CR-065

Senior Judge S. Arthur Spiegel

May 11, 2006 - One Count Information filed charging defendant with Obstruction of Justice in a Proceeding before an agency of the United States (Federal Trade Commission), in connection with the marketing and sale of certain products by Berkeley Premium Nutraceuticals (“BPN”), located in the Southern District of Ohio in Cincinnati, Ohio, in violation of 18 U.S.C. §§1805 and 2.

June 13, 2006 - Defendant was arraigned, entered a plea of guilty and was released on Own Recognizance Bond. Awaiting Sentencing.

The lead prosecutor for this case is Assistant United States Attorney Anne L. Porter.

UNITED STATES v. STEVEN E. WARSHAK (COUNTS 1-98, 102-106, 108-110, 112), HARRIET WARSHAK (COUNTS 1, 27, 28, 30, 31, 99-101, 107), PAUL J. KELLOGG (COUNTS 14, 30, 31, 96, 97, 109-112), CHARLES W. CLARKE, JR. (COUNT 1), STEVEN P. PUGH (COUNTS 109-111), AMAR D. CHAVEN (COUNTS 1, 29), TCI MEDIA, INC. (COUNTS 57-58, 60-73, 79, 83, 91-93), and BERKELEY PREMIUM NUTRACEUTICALS, INC. (COUNTS 1-13, 29, 110)

Case No. 1:06-CR-0111

Senior Judge S. Arthur Spiegel

September 20, 2006 - 112 Count Indictment filed.

September 28, 2006 - 1:30 PM, Initial Appearance of all defendants scheduled before Magistrate Judge Timothy S. Hogan, Room 701, Potter Stewart Courthouse, 100 East Fifth Street, Cincinnati, Ohio. All defendants were arraigned and entered pleas of not guilty. All defendants were released on Own Recognizance Bond set by Magistrate Judge Timothy S. Hogan. Awaiting Trial, date to be determined by the court.

October 25, 2007 –  2:30 PM,  Final Pretrial Conference, Potter Stewart Courthouse, 100 East Fifth Street, Room 838, Chambers of Senior District Judge S. Arthur Siegel

January 08, 2008 – 9:30 AM – Jury Trial set to begin at Potter Stewart Courthouse, 100 East Fifth Street, Cincinnati, OH  45202, Courtroom 842 before Senior District Judge S. Arthur Spiegel.

The Prosecutors for this case are Assistant United States Attorney Anne L. Porter, Assistant United States Attorney Karl P. Kadon, and Mark Josephs, Trial Attorney with the U.S. Department of Justice Office of Consumer Litigation.

February 22, 2008 - A jury returned the following verdict(s):

Count
U.S.C.
Description
 Verdict
Steven Pugh
109 18 U.S.C. § 371 Conspiracy to Misbrand Not Guilty
110 21 U.S.C. § 331(k), 21 U.S.C. § 333(a) (2), 18 U.S.C. § 2 Misbranding Not Guilty
111 18 U.S.C. § 371 Conspiracy to Obstruct proceedings before the U.S. Food and Drug Administration Guilty
TCI Media, Inc.
57 18 U.S.C. § 1956 and 2 Money Laundering Guilty
58 18 U.S.C. § 1956 and 2 Money Laundering Guilty
60 18 U.S.C. § 1956 and 2 Money Laundering Guilty
61 18 U.S.C. § 1956 and 2 Money Laundering Guilty
62 18 U.S.C. § 1956 and 2 Money Laundering Guilty
63 18 U.S.C. § 1956 and 2 Money Laundering Guilty
64 18 U.S.C. § 1956 and 2 Money Laundering Guilty
65 18 U.S.C. § 1956 and 2 Money Laundering Guilty
66 18 U.S.C. § 1956 and 2 Money Laundering Guilty
67 18 U.S.C. § 1956 and 2 Money Laundering Guilty
68 18 U.S.C. § 1956 and 2 Money Laundering Guilty
69 18 U.S.C. § 1956 and 2 Money Laundering Guilty
70 18 U.S.C. § 1956 and 2 Money Laundering Guilty
71 18 U.S.C. § 1956 and 2 Money Laundering Guilty
72 18 U.S.C. § 1956 and 2 Money Laundering Guilty
73 18 U.S.C. § 1956 and 2 Money Laundering Guilty
79 18 U.S.C. § 1956 and 2 Money Laundering Guilty
83 18 U.S.C. § 1956 and 2 Money Laundering Guilty
91 18 U.S.C. § 1956 and 2 Money Laundering Guilty
92 18 U.S.C. § 1956 and 2 Money Laundering Guilty
93 18 U.S.C. § 1956 and 2 Money Laundering Guilty
Berkeley Premium Nutraceuticals, Inc ("BPN")
1 18 U.S.C. § 1349 Conspiracy to commit mail, wire, bank fraud Guilty
2 18 U.S.C. § 1341 Mail Fraud: concerning "consumer VR" being Vern Robb Guilty
3 18 U.S.C. § 1341 Mail Fraud: concerning "consumer JJ" being Jeff Jones Guilty
4 18 U.S.C. § 1341 Mail Fraud: concerning "consumer MAO" being Michelle Olsen Guilty
5 18 U.S.C. § 1341 Mail Fraud: concerning "consumer JTC" being John Crutchfield Guilty
6 18 U.S.C. § 1341 Mail Fraud: concerning "consumer EJM" being Elizabeth Masuoko Guilty
7 18 U.S.C. § 1341 Mail Fraud: concerning "consumer DGS" being Debra Savitt Guilty
8 18 U.S.C. § 1341 Mail Fraud: concerning "consumer DGS" being Debra Savitt Guilty
9 18 U.S.C. § 1341 Mail Fraud: concerning "consumer SW" being Sherry Wallin Guilty
10 18 U.S.C. § 1341 Mail Fraud: concerning "consumer MB1" being Mary Bowen Guilty
11 18 U.S.C. § 1341 Mail Fraud: concerning "consumer MK" being Marc Koff Guilty
12 18 U.S.C. § 1341 Mail Fraud: concerning "consumer MK" being Marc Koff Guilty
13 18 U.S.C. § 1341 Mail Fraud: concerning "consumer DCP" being Donald Prater Guilty
29 18 U.S.C. § § 1029 (a) ( 5), 1029 (b) (1) and (2) Conspiracy to Commit and Attempt to Commit Access Device Fraud Guilty
110 21 U.S.C. § 331 (k), 21 U.S.C. § 333 (a) (2), 18 U.S.C. § 2 Misbranding Guilty
Steven Warshak
1 18 U.S.C. § 1349 Conspiracy to commit mail, wire, bank fraud Guilty
2 18 U.S.C. § 1341 Mail Fraud: concerning "consumer VR" being Vern Robb Guilty
3 18 U.S.C. § 1341 Mail Fraud: concerning "consumer JJ" being Jeff Jones Guilty
4 18 U.S.C. § 1341 Mail Fraud: concerning "consumer MAO" being Michelle Olsen Guilty
5 18 U.S.C. § 1341 Mail Fraud: concerning "consumer JTC" being John Crutchfield Guilty
6 18 U.S.C. § 1341 Mail Fraud: concerning "consumer EJM" being Elizabeth Masuoko Guilty
7 18 U.S.C. § 1341 Mail Fraud: concerning "consumer DGS" being Debra Savitt Guilty
8 18 U.S.C. § 1341 Mail Fraud: concerning "consumer DGS" being Debra Savitt Guilty
9 18 U.S.C. § 1341 Mail Fraud: concerning "consumer SW" being Sherry Wallin Guilty
10 18 U.S.C. § 1341 Mail Fraud: concerning "consumer MB1" being Mary Bowen Guilty
11 18 U.S.C. § 1341 Mail Fraud: concerning "consumer MK" being Marc Koff Guilty
12 18 U.S.C. § 1341 Mail Fraud: concerning "consumer MK" being Marc Koff Guilty
13 18 U.S.C. § 1341 Mail Fraud: concerning "consumer DCP" being Donald Prater Guilty
14 18 U.S.C. § § 1014 and 2 False Statement to Bank, First Regional Bank Not Guilty
15 18 U.S.C. § 1344 Bank Fraud, First Financial Bank Guilty
16-22 18 U.S.C. § 1014 False Statement to Bank, First Financial Bank Not Guilty
23 18 U.S.C. § 13 Bank Fraud, Provident Bank now known as National City Bank Guilty
24 18 U.S.C. § § 1014 and 2 False Statement to Bank, Provident Bank n/k/a National City Bank Not Guilty
25 18 U.S.C. § § 1014 False Statement to Bank, Provident Bank n/k/a National City Bank Not Guilty
26 18 U.S.C. § § 1014 and 2 False Statement to Bank, Provident Bank n/k/a National City Bank Not Guilty
27 18 U.S.C. § § 1344 and 2 Bank Fraud, Silicon Valley Bank Guilty
28 18 U.S.C. § § 1014 and 2 False Statement to Bank, Silicon Valley Bank Not Guilty
29 18 U.S.C. § § 1029 (a) (5), 1029 (b) (1) and (2) Conspiracy to Commit and Attempt to Commit Access Device Fraud Guilty
30 18 U.S.C. § 1956 (h) Conspiracy to Commit Money Laundering Guilty
31 18 U.S.C. § 1956 (h) Conspiracy to Commit 18 U.S.C. § 1957 Money Laundering Guilty
32-108 18 U.S.C. § § 1956 and 2 Money Laundering Guilty
109 18 U.S.C. § 371 Conspiracy to Commit an Offense against the Unite States by Misbranding Not Guilty
110 21 U.S.C. § 331 (k), 21 U.S.C. § 333 (a) (2), 18 U.S.C. § 2 Misbranding Not Guilty
112 18 U.S.C. § 371 Conspiracy to Obstruct proceedings Before the U.S. Federal Trade Commission Guilty
Harriet Warshak
1 18 U.S.C. § 1349 Conspiracy to commit mail, wire, bank fraud Guilty
27 18 U.S.C. § § 1344 and 2 Bank Fraud, Silicon Valley Bank Guilty
28 18 U.S.C. § § 1014 and 2 False Statement to Bank, Silicon Valley Bank Not Guilty
30 18 U.S.C. § 1956 (h) Conspiracy to Commit Money Laundering Guilty
31 18 U.S.C. § 1956 (h) Conspiracy to Commit 18 U.S.C. § 1957 Money Laundering Guilty
99-101 & 107 18 U.S.C. § § 1956 and 2 Money Laundering Guilty
Paul J. Kellogg
14 18 U.S.C. § § 1014 and 2 False Statement to Bank, First Regional Bank Not Guilty
30 18 U.S.C. § 1956 (h) Conspiracy to Commit Money Laundering Guilty
31 18 U.S.C. § 1956 (h) Conspiracy to Commit 18 U.S.C. § 1957 Money Laundering Guilty
96 & 97 18 U.S.C. § § 1956 and 2 Money Laundering Guilty
109 18 U.S.C. § 371 Conspiracy to Commit an Offense against the Unite States by Misbranding Not Guilty
110 21 U.S.C. § 331 (k),21 U.S.C. § 333 (a) (2),18 U.S.C. § 2 Misbranding Not Guilty
111 & 112 18 U.S.C. § 371 Conspiracy to Obstruct proceedings Before the U.S. Federal Trade Commission Guilty
Amar D. Chavan
1 18 U.S.C. § 1349 Conspiracy to commit mail, wire, bank fraud Not Guilty
29 18 U.S.C. § § 1029 (a) (5), 1029 (b) (1) and (2) Conspiracy to Commit and Attempt to Commit Access Device Fraud Not Guilty

 

Criminal charges in the case involving defendant Charles Clarke were dismissed on March 20, 2008. Mr. Clarke died in a fatal car accident prior to trial.

February 26, 2008 - A jury returned the following forfeiture verdict(s) finding a nexus between the criminal conduct of Steven Warshak, Berkeley Premium Nutraceuticals, TCI Media, Inc., and Harriet Warshak and these assets:

Real Property
Real property known and numbered 5130 Rollman Estates, Hamilton County, Cincinnati, Ohio 45236.
Real property known and numbered 5140 Rollman Estates, Hamilton County, Cincinnati, Ohio 45236.
Real property known and numbered 7027 Beech Hollow Drive, Hamilton County, Cincinnati, Ohio 45236.
Real property known and numbered 5150 Rollman Estates, Hamilton County, Cincinnati, Ohio 45236.
Real property known and numbered 5758 San Elijo, San Diego County, Rancho Santa Fe, California 92067.
Real property known and numbered 7701 Sagamore Drive, Hamilton County, Cincinnati, Ohio 45236.
Vehicles
2004 Grand Cherokee, VIN: 1J8GW68JX4C147775, State of Ohio Title No. 8300742020, in the name of Steve Warshak, with all attachments thereon.
2005 GMC Denali, VIN: 1GKFK66U14J273213, State of Ohio Title No. 310439556, in the name of Steve Warshak, with all attachments thereon.
Bank Accounts
Funds in the amount of $158,204.26 seized on 1/30/06 from Fifth Third Bank Account No. 748030-7094 in the name of Hallmark Homes LLC.
Funds in the amount of $151,792.92 seized on 1/31/06 from Fifth Third Bank Account No. 748030-7094 in the name of Hallmark Homes LLC.
Funds in the amount of $327,596.76 seized on 3/16/05 from Fifth Third Bank Checking Account No. 7116-6526 in the name of TCI Media, Inc. c/o Steve Warshak.
Funds in the amount of $19,478.07 seized on 3/16/05 from U.S. Bank N.A. Checking Account No. 15345274-4409 in the name of Steven Warshak.
Funds in the amount of $2,105,736.48 seized on 3/16/05 from Fifth Third Bank Checking Account No. 5696-8440 in the name of Steve Warshak or Carri Warshak MD.
Funds in the amount of $16,239.27 seized on 4/5/06 from Fifth Third Bank Account No. 007428-6494 in the name of Knothead Clothing Company.
Contents of Fifth Third Bank Account No. 007195-9593 in the name of Strong Foundations Inc.
Investment accounts
Contents of ING USA Annuity & Life Insurance Company Account No. XXXXX870W in the name of Harriet Warshak (approximate value $272,900.69).
Contents of Hartford Life Insurance Annuity Account No. XXXXX9413 in the name of Harriet Warshak (approximate value $256,456.11).
Contents of Smith Barney Citigroup Account No. XXXXXX3419 in the name of Harriet Warshak TOD Steven Edward Warshak (approximate value $474,732.76).
Contents of Nationwide Life Insurance Company Annuity Account No. XXXXX0961 in the of Steve E. Warshak (approximate value $512,174.23).
Contents of National Financial Services, LLC/Equity Services Incorporated Account No. XXXXX4133 in the name of Steve E. Warshak, TOD Carri Warshak (approximate value $4,130,212.88).
Contents of National Financial Services, LLC/Equity Services Incorporated Account No. XXXXX7671 in the name of Paul J. Kellogg TTEE, The Carri E. Warshak 2004 QTIP Trust U/A 10/1/04 (approximate value $13,741,349.39).
Contents of National Financial Services, LLC/Equity Services Incorporated Account No. XXXXX7680 in the name of Paul J. Kellogg TTEE, The Warshak 2004 Gift Trust U/A 10/1/04 (approximate value $1,049,011.43).
Contents of Life Insurance Company of the Southwest SPDA-5 Annuity Account No. XXX676X in the name of Steve Warshak (approximate value $244,517.80).
Contents of Life Insurance Company of the Southwest Platinum Annuity Account No. XXX677X in the name of Steve Warshak (approximate value $229,727.54).
Contents of Midland National Life Insurance Company Contract No. XXXXXXX3028 in the name of Steve Warshak (approximate value $413,357.76).
Contents of Putnam Investor Services, College Advantage Plan, Account No. XXXXXXXXXX775-BBB3 in the name of Steve E. Warshak, FBO Michael Oswald.
Contents of Putnam Investor Services, College Advantage Plan, Account No. XXXXXXXXXX451-5408 in the name of Steve E. Warshak, FBO Jesse Warshak.
Contents of Putnam Investor Services, College Advantage Plan, Account No. XXXXXXXXXXXXX4203 in the name of Steve E. Warshak, FBO Anna Warshak.
Insurance Policy
Contents of First Colony Life Insurance Company (Genworth Financial) Policy No. XXX0584 in the name of the Warshak Family 2004 TST UTAD 10/01/2004, Paul J. Kellogg as Trustee (approximate value $113,280.00).
Real Estate Proceeds
Funds in the amount of $152,532.91 seized on 2/15/06, which represents proceeds from the sale of real property known and number as 8153 Darlene Terrace, Middletown, Ohio 45044.
Accounts Receivable
All funds due to Steve E. Warshak/BPN pertaining to an unsecured loan in the amount of $189,725 to Claudia J. Eagler on or about November 16, 2004 for the purchase of real property known and numbered 7751 Sagamore Drive, Hamilton County, Cincinnati, Ohio 45236.
All funds due to Steve E. Warshak/BPN pertaining to an unsecured loan in the amount of $250,000.00 to Brian Giebel and Lynn Dowd on or about September 16, 2004.
All funds due to Steve E. Warshak/TCI Media pertaining to an unsecured loan in the amount of $450,000 to Richard S. Golden on or about December 14, 2004.
 

All sentencing hearings will take place before Senior Judge Spiegel, in Courtroom 842, Potter Stewart U.S. Courthouse, 100 East Fifth Street, Cincinnati, Ohio

On Wednesday, August 27, Judge Spiegel sentenced:

* Steven E. Warshak, company president and owner, to a total term of 25 years imprisonment, followed by five years of supervised release, with a fine of $93,000.  A United States District Court jury convicted Warshak, who is president and owner of Berkeley, on February 22, 2008 of five counts of conspiracy to commit money laundering and various types of fraud as well as conspiracy to obstruct proceedings before the U.S. Federal Trade Commission, 12 counts of mail fraud, three counts of bank fraud, and 73 counts of money laundering for a total of 93 counts.

* Harriet Warshak:  to a term of 24 months imprisonment followed by three years of supervised release.  The same jury convicted Harriet Warshak of a total of eight counts including conspiracy, bank fraud and money laundering.
             
On Thursday, August 28, Judge Spiegel sentenced the following four individuals who pleaded guilty on February 16, 2006 to one count of conspiracy to commit mail and wire fraud:              

* Greg J. Cossman: to a term of one year imprisonment followed by three years of supervised release.
              * Susan Cossman: to a term of one year imprisonment followed by three years of supervised release.
              * Shelly B. Kinmon, to a term of one year imprisonment followed by three years of supervised release.
              * James G. Teegarden, Jr.:  to a term of one year imprisonment followed by three years of supervised release.

Also on Thursday, Judge Spiegel sentenced the following four people for their roles in the scheme:

              * Steven P. Pugh: to 12 months and one day imprisonment, followed by three years of supervised release. Pugh was convicted in February 2008 of one count of conspiracy to obstruct proceedings of the Food and Drug Administration.
              * William Bertemes:  to one month imprisonment followed by three years of supervised released, and fined $10,000.00 Bertemes pleaded guilty on May 11, 2006 to one count of obstruction of justice.
              * Samuel Grote:   to one month imprisonment followed by 2 years of supervised release, and fined $1,000. Grote pleaded guilty on January 10, 2007 to one count of conspiracy. 
              * Michael V. Wagner:   to 12 months and one day imprisonment followed by three years of supervised release. Wagner pleaded guilty on March 2, 2006 to one count of conspiracy to commit mail fraud and wire fraud.              

On Wednesday, Judge Spiegel also sentenced Warshak’s company, Berkeley Premium Nutraceuticals, to five years of probation and fined $15,000,000, to be paid in installment payments of $250,000 per month. The jury convicted Berkeley of 15 counts including conspiracy, mail fraud and misbranding Another Warshak-owned company, TCI Media, Inc., was sentenced to five years of probation and fined $160,000.00.  The jury convicted TCI Media, Inc. of 21 counts of money laundering.  During their probationary periods, the companies have been ordered to comply with a compliance plan to be developed by the U.S. Attorney, U.S. Probation Office, and the Federal Trade Commission.