Springfield business owner fraudulently sold $12M in diet supplements

A Springfield business owner pleaded guilty in federal court Monday to fraudulently marketing and selling nearly $12 million worth of dietary supplements over the Internet, claiming the supplements could prevent, treat or cure multiple diseases.

Mai Lor pleaded guilty to conspiracy to commit wire fraud. She was co-owner with her husband of Medycinex Inc., a Springfield company that purchased dietary supplements and sold them via multiple Web sites, according to a news release from the U.S. Attorney for the Western District of Missouri. She also, at the direction of her husband, formed Bio Nutrasource LLC to carry on the business previously conducted by Medycinex.

Lor contracted with a co-defendant to market and distribute dietary supplements that conspirators claimed had been clinically proven to treat and prevent diabetes, irritable bowel syndrome, gout, high cholesterol, high blood pressure, heartburn and diarrhea.

Federal law prohibits people from claiming that dietary supplements can treat, cure or prevent a specific disease, and none of the supplements were approved by the Food and Drug Administration or carried adequate directions for use.

Lor's co-defendant, Tony Pham, of Grand Rapids, Mich., pleaded guilty in July to selling more than $11.9 million worth of the supplements in 2005 and 2006 through several Web sites.

According to Missouri secretary of state filings, Medycinex, which operated from 2565 W. Bennett St., Ste. B, was administratively dissolved in January 2007. Bio Nutrasource is an active limited liability company organized by Lor, according to state filings.

Lor agreed to forfeit any property derived from the proceeds of the offenses, including more than $11.9 million, real estate properties in Springfield, Rogersville and Pleasant Hope, three vehicles and various bank accounts.

She also is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 or twice the gross gain.[[In-content Ad]]