PORTSMOUTH, R.I. (WPRI) — Daniel Chapter One and its owners were indicted on 24 federal counts for allegedly marketing and selling more than $2 million in unapproved remedies that they claimed could fight cancer.
James and Patricia Feijo and their Portsmouth-based business, which investigators claim also sells its products on the Internet, were named in the indictment. Six of the counts involve alleged Introduction of a New Drug into Interstate Commerce. The couple also faces several tax evasion charges including allegations that James Feijo did not file personal tax returns for at least two years.
According to the indictment, the Feijos sold “unapproved health products and supplements 7 Herb Formula, Bio Shark and GDU, which were not generally recognized as safe and effective for use by the FDA.” The indictment alleged the company’s website “stated the product 7 Herb Formula fights tumor formation.” The website also stated, “if you suffer from any type of cancer, Daniel Chapter One suggests this (sic) products, to fight it,” according to the indictment.
Investigators claim Daniel Chapter One sold more than $2 million worth of the the unapproved products between 2007 and 2010.
As the investigation was getting underway in 2008, a lawyer for Daniel Chapter One told Eyewitness News his clients believe their products are safe and effective.
“We’ve got a struggle going on in this country between the pharmaceutical industry in Washington on one hand putting chemicals in people, and the herbal industry saying lets use natural stuff,” the company’s attorney said.
According to the tax evasion counts, Jame Feijo falsely represented to his employees that they were independent contractors. He allegedly paid them through checks written our to cash and according to the indictment he failed to collect, account for and pay employment taxes for at least 16 quarters.
Daniel Chapter One did not return a phone call or email from Target 12.