Two California residents and an associated company importing ingredients into the United States have been indicted for a smuggling scheme in which controversial substances, such as steroid precursors, ended up in products marketed as dietary supplements.

Josh Long, Associate editorial director, Natural Products Insider

December 3, 2018

2 Min Read
California residents, import company indicted for smuggling scheme involving ‘dietary supplements’

Two California residents and an associated company importing ingredients into the United States have been indicted for a smuggling scheme in which controversial substances, such as steroid precursors, ended up in products marketed as dietary supplements.

In early November, a federal grand jury in Los Angeles returned a seven-count indictment against Lynn Chau, 43, of Rosemead, California, Bao Luu, 42, of Mira Loma, California, and Pure Assay Ingredients Inc., Chau’s import company based in City of Industry, California.

Chau and Luu were arrested Nov. 28, the U.S. Department of Justice (DOJ) announced last week in a news release.

Also indicted: two Chinese citizens who worked for the company in Chengdu, China.

The indictment alleged the defendants conspired to deceive FDA and the U.S. Customs and Border Protection by mislabeling stimulants and other questionable ingredients to dodge government scrutiny during import. When the defendants supposed an ingredient would be denied entry into the United States or would draw questions from federal officials, they prepared fraudulent documents and submitted them to FDA, the indictment claimed.

The dishonest documents, DOJ’s news release said, typically declared the substances to be melatonin, sucralose or other legal ingredients.

According to the indictment, the defendants sold the controversial substances to dietary supplement manufacturers in the United States for use in consumer products.

“This case alleges a scheme designed to generate profits at the expense of the public’s health and safety,” United States Attorney Nick Hanna said, in a statement. “Members of the conspiracy are charged with smuggling prohibited substances, such as steroid precursors, and attempting to prevent U.S. officials from learning the true nature of the shipments that made their way into so-called dietary supplements. We will continue to investigate and prosecute people involved in deceptive practices that endanger consumers.”

DOJ cited one instance in which Chau and Luu prepared a false shipment to deceive FDA into believing Pure Assay destroyed substances the agency blocked from distribution. The company, however, had already shipped the real products, DOJ said.

The individual defendants could not be immediately reached for comment, and Pure Assay Ingredients did not respond to a voicemail and electronic submission through their webpage requesting comment on the indictment.

The case follows a separate prosecution against Chinese citizens charged with conspiring to mislabel synthetic dietary supplement ingredients or otherwise helping to conceal the genuine nature of a purported dietary supplement from American retailers, DOJ said.

Three Chinese nationals were arrested last year in Las Vegas while attending a dietary supplement trade show, Informa’s SupplySide West. They later pleaded guilty in connection with the prosecution, DOJ said.

As INSIDER previously reported, the indictment against the Chinese companies and several of their employees were for charges related to the intended sale of mislabeled DMAA (1,3-dimethylamylamine), including fraud, smuggling and obstruction.

 

 

 

 

 

 

 

 

 

 

About the Author(s)

Josh Long

Associate editorial director, Natural Products Insider, Informa Markets Health and Nutrition

Josh Long directs the online news, feature and op-ed coverage at Natural Products Insider, which targets the health and wellness industry. He has been reporting on developments in the dietary supplement industry for over a decade, with a focus on regulatory issues, including at the Food and Drug Administration.

He has moderated and/or presented at industry trade shows, including SupplySide East, SupplySide West, Natural Products Expo West, NBJ Summit and the annual Dietary Supplement Regulatory Summit.

Connect with Josh on LinkedIn and ping him with story ideas at [email protected]

Education and previous experience

Josh majored in journalism and graduated from Arizona State University the same year "Jake the Snake" Plummer led the Sun Devils to the Rose Bowl against the Ohio State Buckeyes. He also holds a J.D. from the University of Wyoming College of Law, was admitted in 2008 to practice law in the state of Colorado and spent a year clerking for a state district court judge.

Over more than a quarter century, he’s written on various topics for newspapers and business-to-business publications – from the Yavapai in Arizona and a controversial plan for a nuclear-waste incinerator in Idaho to nuanced issues, including FDA enforcement of the Dietary Supplement Health and Education Act of 1994 (DSHEA).

Since the late 1990s, his articles have been published in a variety of media, including but not limited to, the Cape Cod Times (in Massachusetts), Sedona Red Rock News (in Arizona), Denver Post (in Colorado), Casper Star-Tribune (in Wyoming), now-defunct Jackson Hole Guide (in Wyoming), Colorado Lawyer (published by the Colorado Bar Association) and Nutrition Business Journal.

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