Consumer Fraud

Supplement CEO arrested for violating parole

supplements body builder shutterstock 266x210 Supplement CEO arrested for violating paroleMore bad news for dietary supplement distributor Enhanced Athlete Inc. Scott Cavell, the company’s CEO, was arrested for allegedly violating his parole from a previous fraud conviction, according to the U.S. District Court for the Eastern District of California. His parole violation includes possession of marijuana, use of controlled substances, failing to report an expenditure of more than $500, and traveling out of the judicial jurisdiction without permission.

The violations were uncovered after the Food and Drug Administration (FDA) executed a search warrant at the Enhanced Athlete facility and Cavell’s residence. During that search, agents found receipts from a Lake Tahoe trip to the Montbleu Resort Casino & Spa in Nevada, which indicated he traveled outside the court’s jurisdiction.

They also discovered a 2017 Corvette in Cavell’s garage and documents in the glove box that indicated he purchased the $95,000 car. But Cavell never reported the purchase to his probation officer as required by his parole. Agents also found 14 grams of marijuana and other drug paraphernalia at his home.

In 2009, Cavell was wrapped up in a multimillion-dollar mortgage scheme with Loomis Wealth Solutions and was a fugitive until 2012, when he was arrested in Ireland and extradited back to the U.S. He pleaded guilty to wire fraud and was released from prison in 2016. He was ordered to pay nearly $7.5 million in restitution.

Enhanced Athlete has been rife with legal issues since last summer. The company faces two civil lawsuits accusing it of selling potentially dangerous dietary supplements that contain steroid-like selective androgen receptor modulators, or SARMS, and 2,4-Dinitrophenol, or DNP, a stimulant.

The lawsuits also name former bankruptcy lawyer, online personality, and owner and operator of Enhanced Athlete Inc., Charles Anthony Hughes, who went by the name Dr. Tony Huge when promoting the supplements. Hughes claims he is not an employee of the company, just a spokesman.

Investigators say it appears Cavell has continued to run his business out of his home. “Most recently, observations by federal law enforcement officers indicate Cavell has continued to engage in manufacturing and distributing unapproved drugs, dietary supplements, and controlled substances/steroids for human consumption,” court documents state.

His probation officer recommended he remain in custody because he “poses a risk of flight” and “a danger to the community.”

Sources:
Sacramento Business Journal
Righting Injustice