Friday, May 23, 2008

Fraudelent Marketing in the News

Former Body Solutions CEO admits lying to FTC
May 19, 2008


The former CEO of a company that used radio personalities to market Body
Solutions weight-loss products pleaded guilty Monday to lying to federal
regulators about his assets.

Harry Siskind, 53, former chief executive of Mark Nutritional Inc., entered
the plea in federal district court in San Antonio.

Siskind faces up to five years in federal prison, a fine up to $250,000 and
$155 million in restitution when he is sentenced Aug. 28, federal officials

Siskind's attorney, a federal public defender, did not immediately respond
to phone and e-mail requests for comment. Siskind was released on $50,000
bond, according to court records.

The U.S. Attorney's Office in San Antonio said Siskind admitted making a
false statement about his assets during a 2003 deposition in the Federal
Trade Commission's lawsuit against himself, his former company and others.

The FTC is suing Siskind and others over marketing claims by Body Solutions
that drinking one of its products would cause users to lose weight as they
slept, without diet or exercise. The FTC took Siskind's deposition about
that lawsuit and a related bankruptcy case.

Officials said Siskind was ordered by a court to disclose all assets he
owned or controlled but described some valuable loans he was owed as
worthless stock.

Mark Nutritional agreed in 2003 to shut down. It sold about $155 million
worth of Body Solutions Evening Weight Loss Formula.

Source: Former Body Solutions CEO admits lying to FTC

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