AnaFit (AFboard.com) loses half million dollar judgement to the FTC
by Anthony Roberts ~ source

On the 11th of October this year (2008), I told you that AnaFit (the nutritional company and steroid-discussion website) got sued by the FTC (for making false claims about one of their nutritional products), and I later told you that they had claimed that it was no big deal. In fact, Larry Berube (posting under the screen name “Ulter”) made the following statements about the situation to his members:

Like I said, they didn’t press it, they dropped the fines and we didn’t have to go to court if we complied and proved we didn’t profit from it, so we did.

Anthony is once again writing about something he knows nothing about.

So here we have the owner of Anafit (AFboard.com) telling his members that the FTC dropped the fines (the truth is that the judgment was SUSPENDED – not “dropped” because they COULDN’T PAY!), and he further says that I (*yeah, me, Anthony Roberts) don’t know what I’m talking about…

I’ll let you be the judge of whether that is true…

As you can see from this link on the FTC’s own website, the FTC did not drop the fines (e.g. I have caught Larry Berube lying to his members and customers).

The truth is that the FTC received a court judgment against Anafit for $493,545 (which they COULDN’T pay). Below is a full copy of the FTC’s press release outlining the deceptive marketing practices that Anafit was found guilty of, and the fines they will now have to pay:

Marketers of Dietary Supplements Ordered to Halt False Claims About Diabetes Prevention and Treatment

The marketers of dietary supplements that purportedly prevented and treated diabetes have settled Federal Trade Commission charges that they engaged in deceptive advertising practices. According to the FTC’s complaint, Glucorell, Inc. and Anafit, Inc., both based in Orlando, Florida, made false and unsubstantiated claims that two dietary supplements, Insulow and Glucorell R, are effective for preventing and treating diabetes.

Along with statements in their ads such as “Insulow® may be the only thing between you . . . and a needle,” the defendants also made unsubstantiated claims that Insulow prevents or reduces the risk of developing Type 2 diabetes; is an effective treatment for Type 1 and Type 2 diabetes; lowers high blood sugar levels; prevents or reverses insulin resistence; increases fat loss and decreases insulin-related obesity; and enables diabetics to reduce or eliminate the amount of drugs and insulin required to keep blood sugar levels healthy and reduce insulin resistance, according to the complaint. The Commission also alleged that the defendants falsely advertised that all of these claims except the last had been proven by clinical studies.

The complaint also alleges that the defendants made unsubstantiated claims about Glucorell R. The defendants’ advertisements allegedly claimed that Glucorell R is effective for treating Type 2 diabetes, prevents or reduces the risk of developing Type 2 diabetes, and is effective in treating and preventing cancer. According to the complaint, the defendants also falsely advertised that the last two Glucorell R claims were proven by clinical studies.

According to papers filed with the court, Glucorell, Inc. has been primarily responsible for packaging, distributing, and selling Insulow, and has marketed both supplements; while Anafit, Inc., has been responsible for packaging, distributing, selling, and marketing only Glucorell R.

Under the terms of the order approved by the U.S. District Court for the Middle District of Florida on October 27, 2008, the defendants are prohibited from making the claims challenged in the complaint unless such claims are truthful, not misleading, and substantiated by competent and reliable scientific evidence. The defendants are also prohibited from making representations about the benefits, performance, or efficacy of any dietary supplement, food, or drug without competent and reliable scientific evidence.

The order contains a judgment of $493,545, which is the total amount the defendants received in sales for Glucorell R and Insulow between January 2005 and May 2008. However, the entire judgment is suspended due to their inability to pay. If it is determined that the financial information given to the FTC was untruthful, then the full amount of the judgment will automatically become due.

The complaint also names two of the companies’ principals, Laurence Berube and Jerel Scott Ferguson, as defendants. Both individuals have agreed to the terms of the stipulated order.
The order contains various record keeping provisions to assist the FTC in monitoring the defendants’ compliance.