Press Release
BROWARD RESIDENTS INDICTED ON $8 MILLION DOLLAR FRAUD AND MONEY LAUNDERING SCHEME
April 20, 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, Jana Chappie, Joseph Wentz, and Betty Wentz, residents of Broward County, Florida, were indicted on 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 William Chappie and Jana Chappie were charged with money laundering.
According to the Indictment, 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, defendants sold a similar device called the Wonder Light Wand. In the promotional and marketing materials, the defendants made false 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 to have FDA-approval 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 are banned under a federal district court injunctive 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.
The defendants defrauded approximately 350 investors out of roughly $8.1 million dollars through their scheme. Defendant William Chappie allegedly used the alias of 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.
If convicted, the defendants face a maximum sentence of five (5) years' imprisonment on the conspiracy count, each of the securities fraud counts, twenty (20) years' imprisonment on each of the mail fraud, wire fraud, and money laundering counts, and three (3) years' imprisonment on each of the FDA counts.
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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