Tag Archives: fraud

LIPOBAN: Miracle Fat Absorbing Weight Loss Supplement Scam

Lipoban, which sold for about $60 per bottle, was marketed as miracle weight supplement that actually absorbs fat. Frank Sarcona of West Palm Beach made about $10 million on Lipoban, and millions more on other weight loss, diet and health supplement products.

Instead of losing weight, Lipoban buyers simply lost their money… and scammer Frank Sarcona has now lost his freedom.

The 58-year-old Frank Sarcona was convicted of 29 felony counts regarding his “Lipoban” product

According to a CBS4 story:

“A West Palm Beach man who promised miracle weight supplement in a bottle has been sentenced to two decades in federal prison.
Last October, 58-year-old Frank Sarcona was convicted of more info

29 felony counts regarding his “Lipoban” product which purported to absorb fat.

“Sarcona had faced up to 33 years in prison, but during a sentencing hearing on Friday, Judge Kenneth Marra showed leniency with a 20 year sentence. Sarcona’s attorney has vowed to appeal it.

“Though Sarcona made about $10 million on Lipoban, and millions more on other products, his attorney argued he didn’t financially ruin any victims. Lipoban cost about $60 a bottle.

“Sarcona has received up to 13 state or federal cease-and-desist orders since 1984. He allegedly formed Lipoban just months after cutting a deal with the Federal Trade Commission regarding another supplement.”

HAVE YOU LOST MONEY ON A WEIGHT LOSS SUPPLEMENT OR FAT ABSORPTION SCAM LIKE LIPOBAN?  SHARE A COMMENT BELOW.

Read CBS4 story here.

Pure Weight Loss to Pay $700,000 to Former Members

Here is the press release issued by the office of PA Attorney General Tom Corbett December 12, 2008:

Attorney General Corbett announces $700,000 consumer protection agreement with Pure Weight Loss Inc.
HARRISBURG – Attorney General Tom Corbett today announced a more than $700,000 consumer protection agreement with Pennsylvania-based Pure Weight Loss Inc. addressing more than 3,500 complaints involving non-delivery of weight loss products or services to consumers from Pennsylvania and several other states.

Corbett said a consent decree has been reached with Pure Weight Loss, Inc., of Horsham, PA (formerly known as L.A. Weight Loss Centers, Inc.), along with the company’s owner and president, Vahan Karian.

Corbett said the agreement requires the payment of $500,000 to the Pennsylvania Office of Attorney General, for distribution to consumers who pre-paid for products and services that were not delivered and who filed valid complaints with the Attorney General’s Health Care Section.

Additionally, the agreement sets aside $200,000 in a secure fund, which will be used to provide restitution to consumers who filed claims in the U.S. Bankruptcy Court case involving Pure Weight Loss. Corbett said this money will be turned over to the Bankruptcy Trustee for distribution to consumers who have filed proofs of claim with the bankruptcy court.

Corbett explained that the Attorney General’s Health Care Section began receiving complaints about Pure Weight Loss in December 2007, shortly after the company announced plans to close more than 400 weight loss centers across the country. The company halted operations on January 4th, 2008, and filed for bankruptcy shortly after that, leaving thousands of consumers without access to weight loss products and services that they had pre-purchased.

Corbett said that the majority of the consumers who contacted the Attorney General’s Office had purchased contracts lasting a year or more, paying as much as $2,000 for “lite bars” and other food items that were never delivered. Following the closure announcement in December 2007, consumers were instructed by Pure Weight Loss to pick up products from their stores prior to January 4, 2008, or file a claim for refunds – but many consumers failed to receive either refunds or the products and services they had purchased.

Corbett said that in addition to the $700,000 payment from Karian and Pure Weight Loss to fund consumer restitution, the Pennsylvania Office of Attorney General is also working with authorities from the states of New York and Maryland to recover additional funds for consumers from those states.

Both New York and Maryland require weight loss centers to post security bonds intended to protect consumers against losses, and all complaints involving consumers from those states will be turned over to authorities in New York and Maryland as claims against those security bonds – allowing the remaining funds to be distributed to consumers from Pennsylvania and other states.

Corbett said that efforts are underway to verify all the consumer claims that have been filed with the Attorney General’s Health Care Section. Bank and credit card records are also being obtained to determine the exact amount of credit card charge-backs, stop-payment orders or partial refunds that may already have been paid to some consumers. Corbett said the final distribution amount for each consumer will be calculated when the review of that financial information is complete.

It is anticipated that partial refund distribution will begin in early 2009 for eligible consumers who have already filed complaints with the Attorney General’s Health Care Section.

Refund distribution for consumers who filed proofs of claim with the U.S. Bankruptcy Court will take place at the conclusion of the bankruptcy case involving Pure Weight Loss.

The consent agreement was filed in Commonwealth Court, in Harrisburg, Pennsylvania, by Deputy Attorney General Timothy E. Gates of the Attorney General’s Health Care Section.

LA WEIGHT LOSS: Former Employee Guilty in Drug Smuggling Conspiracy


A former LA Weight Loss employee, who was in prison for a credit card refund scam while she worked as a customer service supervisor for LA Weight Loss in Horsham, was convicted of a new scheme to smuggle prescription drugs into prison. Her partner was serving time was serving an 18- to 45-year prison term for stealing prescription pain medications from cancer patients.
Nice people.
Source: Prisoner to get added time for smuggling drugs

“A Hatboro woman will serve probation for conspiring with another woman to smuggle prescription drugs into the Montgomery County Correctional facility where they were inmates last year.

“Lisa Sauter, 35, of the 2700 block of Kentner Road, was sentenced in county court to four years’ probation after she pleaded guilty to a charge of conspiracy to violate state drug laws…

“Tressler said the probationary period will run consecutively to the one- to four-year prison term Sauter received in connection with a probation violation stemming from a separate 2004 conviction in a theft-related case…

“Sauter, according to court records, pleaded guilty in 2004 to a charge of theft by deception and was sentenced to seven years’ probation in connection with her role in a credit card refund scheme while she worked as a customer service supervisor for LA Weight Loss in Horsham.

Authorities alleged Sauter stole more than $21,600 during her involvement in the scheme…

Sauter admitted to the violations and a judge revoked her previous probationary sentence and imposed the one- to four-year prison term against her.”

The LA Weight Loss Human Resource Department must be very proud.

SHARE YOUR MESSAGE

He took your money, but not your spirit. Tell CEO Vahan Karian – and the world – how the closing of Pure Weight Loss affected you financially & emotionally. Whether he’s on the golf course or at dinner at the club, we’ll make sure the gets your message. And we’ll copy the media and the PA Attorney General as well!

[Your email won’t be shown or shared. No profanity or threatening language, please. Share your ideas for creative delivery options. Please support this site by visiting our advertisers or donating to the Dear Vahan Delivery Fund! Now… remind the millionaire who really earned the money he’s enjoying.]

SHARE YOUR MESSAGE

He took your money, but not your spirit. Tell CEO Vahan Karian – and the world – how the closing of Pure Weight Loss affected you financially & emotionally. Whether he’s on the golf course or at dinner at the club, we’ll make sure the gets your message. And we’ll copy the media and the PA Attorney General as well!

[Your email won’t be shown or shared. No profanity or threatening language, please. Share your ideas for creative delivery options. Please support this site by visiting our advertisers or donating to the Dear Vahan Delivery Fund! Now… remind the millionaire whose money he’s enjoying.]