A South Dakota woman has pleaded guilty to her role in a scheme to defraud consumers by selling light-emitting devices as a treatment for more than 200 different diseases and disorders.
Irina Kossovskaia, 63, of Ontario, Canada, pleaded guilty in the District of South Dakota to one count of conspiracy to introduce misbranded medical devices into interstate commerce with the intent to defraud and mislead.
The QLaser System, as the devices were known, was marketed and distributed by Kossovskaia and co-conspirators, including Robert “Larry” Lytle and Fredretta Eason. The devices were falsely claimed to be able to safely and effectively treat serious conditions, including cancer, diabetes, autism, HIV, and heart disease.
No published clinical or scientific studies supported the use of QLaser devices to treat such serious conditions, and the U.S. Food and Drug Administration (FDA) never approved the devices for such use. The devices sold for over $4,000 per unit.
As part of her plea agreement, Kossovskaia admitted to making false claims about the QLasers’ curative powers to mislead consumers into purchasing the devices. She also admitted to assisting Lytle by smuggling hundreds of QLaser devices out of Rapid City to her facility in upstate New York after a federal court ordered Lytle to stop selling the devices.
Kossovskaia continued to sell the devices until 2017 and funneled tens of thousands of dollars in proceeds to Lytle, even though he was under court order to refund consumers for every QLaser purchase made since 2001.
The U.S. Postal Inspection Service investigated this case. Trial Attorney Ross S. Goldstein of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Kevin Koliner of the U.S. Attorney’s Office for the District of South Dakota are prosecuting the case.
Irina Kossovskaia faces a maximum statutory sentence of five years’ imprisonment and additional fines for her role in the conspiracy.
Key Facts
- State: South Dakota
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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