Press Release
TWO BROWARD MEN PLEAD GUILTY TO DEFRAUDING INVESTORS IN $8 MILLION BUSINESS OPPORTUNITY SCHEME
October 11, 2007
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, and David Bourne, Special Agent in Charge, Office of Criminal Investigations, Food and Drug Administration, announced today that defendants William Chappie and Joseph Wentz, residents of Broward County, Florida, plead guilty to charges of conspiracy, wire fraud, mail fraud, and the introduction of adulterated and misbranded devices into interstate commerce in violation of the Federal Food, Drug, and Cosmetic Act. Additionally, defendants Jana Chappie and Betty Wentz plead guilty to causing the introduction of misbranded and adulterated medical devices into interstate commerce.
Chappie and Wentz face a maximum sentence of eight years under the plea agreements.
All defendants are scheduled for sentencing on January 3, 2008, before the U.S. District Court Judge William P. Dimitrouleas in Fort Lauderdale.
According to the charges, the defendants sold business opportunities or dealerships in the Youth Light and Age Eraser devices, allegedly anti-aging Intense Pulse Light photo-rejuvenation devices. Subsequently, the defendants sold a similar device called the Wonder Light Wand. In the promotional and marketing materials, the defendants made false medical claims about the device's ability to erase wrinkles, age spots, sun damage, rosacea, and improve collagen. Claims of this nature are medical, and the devices, therefore needed FDA-clearance prior to any marketing. The defendants sold the devices to dealers, and promised that the devices would be placed in top salons and spas, where treatments could be sold for $100 each. The defendants used paid references to sell the business opportunities. The defendants made many false representations and statements about the true identity of the persons involved with the business, the expected profits, the true capabilities of the devices, the services provided to the dealerships, the authenticity of the references, and the prohibition of the principals in the business from selling business ventures.
Both William Chappie and Joseph Wentz were banned under a prior federal district court order, and prohibited from engaging, participating, or assisting in any manner or in any capacity whatsoever, in the promotion, marketing, or sale of any business venture, whether directly or through an intermediary.
According to court records, the defendants defrauded approximately 350 investors out of roughly $6.8 million through their scheme. Defendant William Chappie used the aliases of Raymond Princeton and William Donaldson to hide his ownership interest in the business. William Chappie was also previously prohibited from using aliases in the same federal district court order.
Mr. Acosta commended the investigative efforts of the Food and Drug Administration, Office of Criminal Investigations. This case is being prosecuted by Assistant United States Attorney Laurie E. Rucoba.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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