Zhang Xiao Dong, Mail Fraud, Texas 2017

Shanghai resident Zhang Xiao Dong, also known as Mark Zhang, has pleaded guilty to committing mail fraud in connection with a scheme to sell mislabeled dietary supplements in Texas.

Zhang, a sales manager for Genabolix USA Inc. and Shanghai Yongyi Biotechnology Co. Ltd., Chinese firms that sell raw ingredients for use in dietary supplements, admitted to agreeing with a confidential government informant to either mislabel the synthetic ingredients or otherwise help to hide the true nature of a proposed dietary supplement from retailers.

Zhang’s guilty plea was entered before U.S. Magistrate Judge David Horan of the Northern District of Texas. He faces a statutory maximum sentence of 20 years of imprisonment, and the Court set sentencing for October 15.

According to the indictment, Zhang and two co-defendants agreed to sell synthetic stimulant ingredients, including the substance known as 1,4-DMAA, to a purported dietary supplement manufacturer in the United States. Zhang admitted that he knew major American dietary supplement retailers would refuse to carry supplements known to contain certain stimulants, such as DMAA.

The investigation was conducted by the FDA’s Office of Criminal Investigations. The case was prosecuted by Kate Rumsey, Assistant United States Attorney for the Northern District of Texas; and David Sullivan and Patrick R. Runkle, Trial Attorneys in the Consumer Protection Branch.

“Americans should be able to trust the products they consume are safe,” said Acting Assistant Attorney General Chad A. Readler. “We will continue to investigate and prosecute those who enable the sale of mislabeled and potentially unsafe dietary supplements.”

“U.S. consumers trust that their dietary supplements are safe and contain appropriate labeling. When unscrupulous producers add undeclared or misidentified ingredients to dietary supplements, there is no assurance that the product is safe for consumption,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations.

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