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Neways guilty in felony case
By Lisa Carricaburu
The Salt Lake Tribune
Springville-based Neways Inc. has pleaded guilty to a felony count of illegally distributing a product containing human growth hormone in the first such U.S. prosecution of its kind.
Neways, a privately held direct seller of dietary supplements, entered the plea Thursday in U.S. District Court in Los Angeles. As part of a plea agreement, the company will forfeit $1.25 million it made from March 1999 to April 2000 selling about 100,000 bottles of BioGevity, an oral spray company promotional materials touted as having the ability "to improve sexual frequency" and "decrease wrinkle appearance," among other attributes.
Neways also will pay a $500,000 fine and continue to cooperate in an ongoing investigation into illegal sales of HGH, which when misused by adults can result in cardiovascular disease, nervous disorders and other ailments, Assistant U.S. Attorney Lee Arian said Monday.
Arian said the Neways case represents the first time he knows of that an illegal seller of a spray containing HGH has been prosecuted.
"There are people out there who think if you put it in a spray, it's OK, but that's not the case," he said.
HGH can be sold for human consumption, but only with a doctor's prescription.
U.S. District Judge A. Howard Matz will sentence Neways on Dec. 15, at which time the company expects no penalties beyond those outlined in the plea agreement, Neways spokesman Rick Evans said Monday.
He characterized Neways' illegal sale of a product containing HGH as "a mistake on our part. . . . We relied on advice from vendors who told us there was no problem" with selling products containing small amounts of HGH.
Evans said the company's own legal team had identified potential problems with the sale of a product containing HGH and Neways had already ceased making BioGevity with the hormone when the criminal charge arose.
Neways reformulated BioGevity -- one of the company's best-selling products -- and since mid-2000 has sold a version containing no HGH.
"We have been cooperative with the investigation and will continue to cooperate," Evans said.
The criminal charge is unrelated to another unresolved court case involving Neways.
Company founders Thomas E. Mower Sr. and former wife Leslie DeeAnn Mower face federal tax evasion charges for allegedly failing to report $3 million in commissions on overseas sales of cosmetics and health supplements.
The Mowers no longer run the company.
Neways guilty in felony case
By Lisa Carricaburu
The Salt Lake Tribune
Springville-based Neways Inc. has pleaded guilty to a felony count of illegally distributing a product containing human growth hormone in the first such U.S. prosecution of its kind.
Neways, a privately held direct seller of dietary supplements, entered the plea Thursday in U.S. District Court in Los Angeles. As part of a plea agreement, the company will forfeit $1.25 million it made from March 1999 to April 2000 selling about 100,000 bottles of BioGevity, an oral spray company promotional materials touted as having the ability "to improve sexual frequency" and "decrease wrinkle appearance," among other attributes.
Neways also will pay a $500,000 fine and continue to cooperate in an ongoing investigation into illegal sales of HGH, which when misused by adults can result in cardiovascular disease, nervous disorders and other ailments, Assistant U.S. Attorney Lee Arian said Monday.
Arian said the Neways case represents the first time he knows of that an illegal seller of a spray containing HGH has been prosecuted.
"There are people out there who think if you put it in a spray, it's OK, but that's not the case," he said.
HGH can be sold for human consumption, but only with a doctor's prescription.
U.S. District Judge A. Howard Matz will sentence Neways on Dec. 15, at which time the company expects no penalties beyond those outlined in the plea agreement, Neways spokesman Rick Evans said Monday.
He characterized Neways' illegal sale of a product containing HGH as "a mistake on our part. . . . We relied on advice from vendors who told us there was no problem" with selling products containing small amounts of HGH.
Evans said the company's own legal team had identified potential problems with the sale of a product containing HGH and Neways had already ceased making BioGevity with the hormone when the criminal charge arose.
Neways reformulated BioGevity -- one of the company's best-selling products -- and since mid-2000 has sold a version containing no HGH.
"We have been cooperative with the investigation and will continue to cooperate," Evans said.
The criminal charge is unrelated to another unresolved court case involving Neways.
Company founders Thomas E. Mower Sr. and former wife Leslie DeeAnn Mower face federal tax evasion charges for allegedly failing to report $3 million in commissions on overseas sales of cosmetics and health supplements.
The Mowers no longer run the company.
