FTC Bans “Mastermind” Braswell From Direct Response Marketing

A stipulated final order banning Almon Glenn Braswell from direct response marketing of dietary supplements represents FTC's latest effort to prevent the "mastermind" from making false supplement claims.

The settlement, filed by FTC in Los Angeles district court Dec. 28, bans Braswell from direct response marketing of foods, unapproved drugs and supplements.

The order also prohibits Braswell from making false, misleading, or unsubstantiated health claims, misrepresenting or making unsubstantiated endorsements, and/or misrepresenting scientific evidence for all foods, drugs, supplements, and health-related products and services.

In addition, Braswell must pay $1 mil. in fines and turn over assets worth $3.5 mil. to settle the charges.

FTC has repeatedly challenged Braswell over dietary supplement marketing. In 1983, he was convicted of mail fraud for marketing products with unsubstantiated anti-baldness claims.

As a result, Braswell was placed under a consent order permanently banning him from making future baldness claims. Though he was later pardoned by President Bill Clinton in 2001, the order is still in effect. The current charges did not violate the consent order, according to an FTC spokesperson.

In 2001, Braswell and Ron Tepper, a business associate who helped write the ads, were subpoenaed to appear before a Senate Special Committee on Aging hearing to address their marketing tactics. However, they were excused after pleading the Fifth Amendment (¹ (Also see "Supplement Health Fraud International Cooperation Urged At Hearing" - Pink Sheet, 17 Sep, 2001.), p. 8).

Braswell was then arrested in January 2003 for conspiracy and tax evasion on behalf of his company Gero Vita International (GVI), based in Marina del Ray, Calif. (² 'The Tan Sheet' Jan. 20, 2003, In Brief).

The most recent order settles a 2003 case against Braswell.

In May of that year, the FTC filed charges against Braswell, Tepper, two "expert endorsers" and seven GVI subsidiary companies for deceptively marketing five dietary supplements.

The complaint targeted Lung Support Formula, a dietary supplement touted to cure asthma and emphysema, AntiBetic Pancreas Tonic, an herbal supplement claiming to cure diabetes and Gero Vita G.H.3, an anti-aging product claiming to prevent Alzheimer's disease and dementia.

Testarex , an herbal product promoted to treat impotence and erectile dysfunction, as well as the weight-loss product ChitoPlex also were named in the complaint. Seven of the defendants settled the charges in June 2005 for $605,000.

In addition, Braswell and four companies were charged with false representation for promoting the advertiser-supported magazine New Life Nutrition as an independent publication (³ (Also see "Braswell Supplement Operations Charged With False Advertising By FTC" - Pink Sheet, 2 Jun, 2003.), p. 13).

The current settlement permanently prohibits Braswell from making health claims related to the five named supplements. Examples of such claims include: "reverses existing lung damage in persons with emphysema"; "can cure Type I or Type II diabetes"; "enables persons to live longer" and "is effective in treating impotence or erectile dysfunction."

However, the injunction does not bar Braswell from marketing products that carry FDA-approved product claims.

The FTC also reached a settlement with Braswell's expert endorser Hans Kugler, PhD, for his promotion of Lung Support Formula and Gero Vita G.H.3.

"Kugler did not have the required expertise or a reasonable basis for his endorsements," FTC states. He is barred from making future endorsements, "unless they are based on competent and reliable scientific information and an actual exercise of his represented expertise."

Kugler must pay $15,000 to settle the allegations, according to the complaint.

The current settlements bring to a close the cases against all seven of the corporate defendants named in the May 2003 complaint, as well as four of the five individual defendants. Litigation continues against Chase Revel, a co-writer on the claims, according to FTC.

- Melina Vissat