We all know the ad with the goofy “Smiling Bob” selling the male enhancement product Enzyte. He may not be smiling so much these days. Berkeley Premium Natraceuticals, the company that distributes the product, is considering massive changes in the wake of its founder's conviction on charges the company bilked consumers out of $100 million by employing misleading ads, manipulating credit card transactions and refusing to cancel orders or accept returns.
The six-week trial - which saw founder and president Steve Warshak and several other BPN executives, including Warshak's mother, fall on charges that included conspiracy, bank fraud and money laundering - ended in February. The guilty parties are scheduled to be sentenced in August.In the meantime, BPN says it's looking for a new image. Changes may include a new name for the company and new concepts for its pitches. "Smiling Bob" may have to go."With innovative marketing, customer loyalty and demand, and the continued commitment of its employees, vendors and retail partners, Berkeley will get back to the $200-million-per-year company it used to be," the company said in a statement released last week.
As for Warshak and the other defendants, they have forfeited more than $33 million in assets so far. In addition, Warshak faces as many as 20 years in prison.
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