The action, filed on Monday in the Northern District court in Georgia, seeks authorization to keep $1.8 million taken from one account and $1.2 million seized from another. The funds are “traceable to one or more unlawful activities” and thus subject to seizure, according to the order. The seizure order relates these illegal activities to profits from the sale of products alleged to contain illegal anabolic steroids, and the money laundering has to do with moving these alleged ill-gotten gains back and forth between the accounts.
The initial indictment, which was also filed in Northern District of Georgia, alleges that Wheat and his company drew up fraudulent ‘certificates of free sale’ for products that made it appear as if they had been issued by the Food and Drug Administration. FDA will upon request supply these certificates, which are occasionally requested by importers in other countries who are buying US products, that according to the indictment indicate that, “The food product is marketed in the United States and eligible for export if certain statutory provisions are met.” According to the indictment, Wheat and Schopp (who was identified as Hi Tech’s manager of manufacturing operations) supplied to customers “misleading documents and representations regarding the regulatory compliance of HI-TECH and its products, including false, fraudulent, and misleading FDA Certificates of Free Sale, GMP certificates, and GMP audit reports.”
Sale of steroids
Wheat is also alleged to have sold products containing anabolic steroids masquerading as supplements by calling these substances ‘pro-hormones.’ According to the indictment, the products, “In fact contained Schedule III Controlled anabolic steroids not properly declared as ingredients on the products' respective labeling.”
The products cited in the initial indictment are:
- Superdrol, which is alleged to contain contained androstanedione, 4-androstenediol and/or 5-androstenediol, and boldione;
- Equibohn, which allegedly contains 4-androstenediol and/or 5-androstenediol;
- 1-AD, which allegedly contains boldione, androstanedione, 4-androstenediol and/or 5-androstenediol;
- 1-Testosterone, said to contain boldione and androstanedione
- Androdiol, alleged to contained 4-androstenediol and/ or 5-androstenediol.