Rhode Island Businessman Pleads Guilty to Marketing and Selling Unapproved Remedies for Cancer Mitigation and Treatment, Tax Evasion

PROVIDENCE, R.I. – James Feijo, 68, owner and operator of Daniel Chapter One, a Portsmouth, R.I., based company, pleaded guilty in federal court in Providence to marketing and selling products not approved by the U.S. Food and Drug Administration (FDA) as cancer mitigation and treatment options, and failing to pay more than $218,000 in employment taxes due the IRS, announced United States Attorney Peter F. Neronha, Michael Mangiacotti, Resident Agent in Charge of the FDA Office of Criminal Investigations, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.

Appearing before U.S. District Court Judge John J. McConnell, Jr., Feijo pleaded guilty to one count of introduction of a new unapproved drug and one count of tax evasion.

At the time of his guilty plea, Feijo admitted to the court that he engaged in the marketing, 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 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 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, at the time of his guilty plea, Feijo admitted to the court that from 2006 through 2011, he falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. During that time, Feijo failed to issue IRS Wage and Tax Statements, Forms W-2, accounting for employees’ wages and taxes withheld. Feijo admitted that through 2011, Daniel Chapter One employees were paid by checks written out to cash, and that for at least sixteen quarters he failed to collect, account for and pay over employment taxes due the IRS totaling $218,408.04.

Feijo is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on January 12, 2016.

The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.

The matter was investigated by the Rhode Island FDA Task Force and by IRS Criminal Investigation. 

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