NEW: Portsmouth Man Sentenced For Selling Fake Cancer Treatments

Wednesday, January 20, 2016

GoLocalProv News Team

James Feijo, 68, owner of Daniel Chapter One, a Portsmouth, R.I., based company, has been sentenced to six months in federal prison followed by six months home confinement for marketing and selling products that were not approved by the U.S. Food and Drug Administration and failing to pay over $218,000 in employment taxes owed to the IRS.

“People facing difficult, even life-threatening, health challenges are often susceptible to the kinds of deceptive schemes cooked up by the defendant here. Whether in this context or in others, those who prey on the hopes and fears of the most vulnerable deserve the full attention of law enforcement. A stretch in federal prison is more than appropriate for this defendant. The people who relied on his greed-motivated, baseless claims of ‘cure’ deserved much better," said United State Attorney Peter Neronha.

Feijo's Guilty Plea

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

At the time of his guilty plea, Feijo admitted to the court that he engaged in the marketing, sale and distribution of unapproved cancer treatment health products and supplements which are not generally recognized as safe and effective for use by the FDA. The products were sold through various websites, in-store advertisements, a call center, on Feijos' daily radio program, and through the use of promotional materials and publications.

“The FDA’s drug approval process ensures that patients receive safe and effective medications. When criminals evade the FDA process and sell their non-FDA approved products to our most vulnerable consumers, we will take action to protect the public’s health," said George Karavetsos, Director, FDA's Office of Criminal Investigations.

Also at the time of the guilty plea, Feijo admitted that from 2006 through 2011, he falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. During that time, Feijo failed to issue IRS Wage and Tax Statements accounting for employees' wages and taxes withheld.

Feijo admitted that Daniel Chapter One employees were paid by checks written out to cash, and that for at least 16 quarters he failed to collect, account for and pay over employment taxes due to the IRS totaling $218,408.04.

“Business owners like Mr. Feijo have an important responsibility to collect and turn over all withholding taxes. Those who fail to do so gain a competitive advantage which will not be tolerated. Employment tax fraud also impacts employees, who may see future benefits such as Social Security reduced because their employer did not comply with the law," said Kristina O'Connell, IRS Criminal Investigation Acting Special Agent in Charge.

Additional Sentencing

At sentencing, U.S. District Court Judge John McConnell, Jr. ordered Feijo to serve three years supervised release and to pay the $218,408.04 that he owed to the IRS.

Feijo pleaded guilty on September 11, 2015, to introduction of a new unapproved drug and tax evasion.

NEW: Portsmouth Man Sentenced For Selling Fake Cancer Treatments

Related Slideshow: 15 Biggest Sports Stories of 2015

15.

14.

13.

12.

11.

10.

9.

8.

7.

6.

5.

4.

3.

2.

1.

Related Articles

Enjoy this post? Share it with others.

Sign Up for the Daily Eblast