Randy Olshen Indicted For $7M Sports Drink Fraud

SALT LAKE CITY – Federal agents have charged Newport Beach, Calif., resident Randy Olshen, 51, with a massive $7 million fraud involving sports hydration drinks. A federal grand jury returned a 38-count indictment against him, charging him with mail fraud, wire fraud, and money laundering.

The charges stem from Olshen’s alleged role in Innovative Health Solutions, LLC (IHS), which he founded in 2008. IHS claimed to manufacture sports drinks like H2O Overdrive, but the company’s actual sales figures were a fraction of what Olshen told investors they were, according to the indictment.

The indictment asserts that Olshen defrauded IHS investors out of more than $7 million by misrepresenting sales numbers and large receivable accounts with major retailers. He is accused of creating two sets of accounting records, one for investors and another accurate record, which he used to hide his fraudulent activities.

In addition to the $7 million in alleged fraud, Olshen faces 12 counts of mail fraud, nine counts of wire fraud, and 17 counts of money laundering. If convicted, he could spend a total of 90 years in prison and pay over $6.5 million in fines.

The investigation into Olshen’s activities is being conducted by the FBI, IRS Criminal Investigation, and the Utah Division of Securities, with the U.S. Attorney’s Office in Salt Lake City handling the prosecution.

Olshen is scheduled to appear before U.S. Magistrate Judge Paul M. Warner on October 22, 2014, at 11:15 a.m., where he will face these serious charges. Indictments are not convictions; Olshen is presumed innocent until proven guilty in court.