SAN JOSE — Joseph Shayota, 64, and Adriana Shayota, 45, both of El Cajon, Calif., were convicted yesterday on all counts in a federal counterfeit operation that flooded U.S. markets with fake 5-Hour ENERGY shots. After an eight-day trial before U.S. District Judge Lucy H. Koh, a jury found the couple guilty of conspiracy to traffic in counterfeit goods, criminal copyright infringement, and introducing misbranded food into interstate commerce. The verdict brings the total number of convictions in the scheme to eight.
The Shayotas, operating through their company Tradeway International Inc., doing business as Baja Exporting, LLC, were authorized by Living Essentials—the sole manufacturer of 5-Hour ENERGY in Wabash, Indiana—to distribute the drink in Mexico with Spanish-language labeling. But instead of honoring the agreement, prosecutors proved the couple diverted shipments, stripped off authentic labels, and replaced them with counterfeit English versions designed to mimic the real product. The bottles and display boxes bore fake trademarks and copyrighted graphics, all forged to pass as genuine.
Living Essentials owns all 5-Hour ENERGY trademarks and copyrights, and never licensed any party to manufacture or relabel the product. Yet the Shayotas and their co-conspirators repackaged the diverted drinks and sold them in the U.S. for higher profits. When initial attempts to sell the Spanish-labeled product failed, the operation escalated to full counterfeiting—replacing packaging with forgeries to deceive retailers and consumers.
“A jury has now determined that the defendants were involved in a conspiracy to substitute a well-known product with a dangerous counterfeit of their own,” said U.S. Attorney Brian J. Stretch. “We are proud of the hard work of our law enforcement partners in the Food and Drug Administration and the Federal Bureau of Investigation who have worked so hard to uncover the evidence necessary to bring these criminals to justice.”
FDA Special Agent in Charge Lisa L. Malinowski warned that counterfeit food and drinks endanger public health. “U.S. consumers rely on the FDA to ensure that their foods – and drinks – are safe and wholesome. When criminals introduce counterfeit foods into the U.S. marketplace, they not only cheat consumers, but place consumers’ health at risk,” Malinowski said. “We will continue to pursue and bring to justice those who jeopardize the public’s health.”
The investigation, led by the FBI and FDA’s Office of Criminal Investigations, dismantled a network that exploited legal distribution channels for illegal gain. The Shayotas now face years in federal prison and steep fines. Sentencing is pending, but the convictions mark a major win against organized food fraud with national reach.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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