COMPANY PLEADS GUILTY TO CRIMINAL CONTEMPT OF COURT FOR SELLING DIETARY SUPPLEMENTS IN VILATION OF COURT ORDERS

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, December 1, 2015

Dietary Supplement Manufacturer Pleads Guilty to Criminal Contempt of Court

The Department of Justice announced today that a Livingston, Montana resident pleaded guilty to selling dietary supplements in violation of two court orders.

Toby McAdam, 57, pleaded guilty before U.S. District Judge Susan P. Watters in the District of Montana to one count of criminal contempt of court.  McAdam was immediately sentenced to four months in prison. He was ordered to pay $80,000 in liquidated damages and $4,936.48 in attorney's fees.

“The Department of Justice will use all available tools to ensure that dietary supplement and drug manufacturers obey court orders,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “As demonstrated by our recently announced dietary supplements sweep, the Consumer Protection Branch will aggressively pursue those who distribute these products in violation of the law.”

The criminal contempt action arose out of a prior civil action the Department filed in 2010 against McAdam, who was the owner and operator of Risingsun Health, based in Livingston.  According to court documents, McAdam sold misbranded and adulterated dietary supplements and drugs that made unsupported claims to cure cancer, ADD/ADHD, epilepsy and intestinal parasites, among other things.  McAdam agreed to close his business until the U.S. Food and Drug Administration (FDA) authorized him to return to business.  No such authorization was given and McAdam was later held in civil contempt for violation of the consent decree.  The Ninth Circuit Court of Appeals later upheld the order of civil contempt against McAdam.

The criminal contempt charges against McAdam alleged that he violated a 2010 court order and an order of civil contempt issued in 2013, which prohibit him from selling dietary supplements.  McAdam admitted to continuing to sell both supplements and drugs and failed to close down his business and online sites.

Principal Deputy Assistant Attorney General Mizer commended the efforts of the U.S. Postal Inspection Service and FDA for the investigation.  The matter was handled by Trial Attorney David Sullivan of the Department’s Consumer Protection Branch.