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Press Release

Rhode Island Business Owner, Wife And Company Indicted For Allegedly Marketing And Selling Unapproved Remedies For Cancer Mitigation And Treatment, Tax Evasion

For Immediate Release
U.S. Attorney's Office, District of Rhode Island

PROVIDENCE, R.I. – A federal grand jury in Providence on Tuesday returned a twenty-four count indictment alleging that a Portsmouth, R.I., business, its owner and his wife marketed and sold in excess of $2,000,000 dollars worth of products not approved by the federal Food and Drug Administration (FDA) as cancer mitigation and treatment options, announced United States Attorney Peter F. Neronha, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, Mark Dragonetti, Special Agent in Charge, FDA Office of Criminal Investigations, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.

According to the indictment, it is alleged that Daniel Chapter One, a Portsmouth, R.I., based company, its owner, James Feijo, and his wife Patricia Feijo, engaged in the marketing and in the sale and distribution of unapproved health products and supplements 7 Herb Formula, Bio Shark and GDU, which were not generally recognized as safe and effective for use by the FDA. Additionally, the indictment alleges that the products, as marketed, were not generally recognized as safe and effective by qualified experts for the cure, mitigation, treatment, or prevention of cancer. The products were allegedly marketed and sold through various websites, in-store advertisements, a call center, on the Feijos’ daily radio program, and through the use of promotional materials and publications.

In addition, it is alleged that from 2006 through 2011, James Feijo falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. It is alleged that during that time, James Feijo failed to issue IRS Wage and Tax Statements, Forms W-2, accounting for employees’ wages and taxes withheld; through 2011, Daniel Chapter One paid employees through checks written out to cash; and that James Feijo, for at least sixteen quarters, failed to collect, account for and pay over employment taxes due the United States.

In addition, as charged in the indictment, it is alleged that for at least two years James Feijo failed to file individual tax returns with the IRS.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. The defendants will be summoned by the U.S. District Court in Providence for arraignment on a date yet to be determined.

The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly of the District of Rhode Island and Trial Attorney Jessica N. Moran of the Justice Department’s Tax Division.

The matter was investigated by members of the Rhode Island FDA Task Force from the North Providence and East Providence, R.I., Police Departments, R.I. State Police and R.I. National Guard, and by IRS- Criminal Investigation. 


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Contact: 401-709-5357

Updated June 22, 2015