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John Wood, United States Attorney for the Western District of Missouri, announced today that two Springfield business owners, along with their local companies and their business associates located in Michigan, have been indicted by a federal grand jury for fraudulently marketing several dietary supplements over the Internet with illegal claims that these supplements could prevent, treat or cure a number of diseases. The Springfield businesses sold the products to a Michigan business, which used several Web sites to sell more than $16 million worth of the products in 2005 and 2006.

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Charles Thao, 40, and his wife, Mai Lor, 23, both of Springfield, along with two businesses that they own and operate in Springfield, Nutrapha Research, and Bio Nutrasource, and Shua Vang, 40, also of Springfield, and Tony Pham, 40, and his business, Techmedica Health, and Tong B. Vang, 42, all of Grand Rapids, Mich., were charged in a 40-count indictment returned by a federal grand jury in Springfield on Wednesday. All of the defendants are in federal custody pending their arraignment and detention hearing at 2 p.m. Tuesday, March 4..

The federal indictment alleges that since April 6, 2004, the defendants have participated in a conspiracy to buy and sell unapproved new drugs and misbranded drugs and to defraud the United States by impeding the lawful functions of the Food and Drug Administration to prevent the introduction of unapproved new drugs and misbranded drugs in interstate commerce, to regulate the interstate sale and distribution of drugs in the United States, and to safeguard the health and safety of consumers who purchase drugs.

According to the indictment, Thao and Lor, through their Springfield business, Medycinex, Inc., supplied millions of dollars worth of dietary supplements to Pham and his business, Techmedica. Pham sold more than $16.6 million worth of those products in 2005 and 2006, using several different Web sites. Pham distributed some of the supplements to Shua Vang and his business, Naturocare. Naturocare also sold products over the Internet, with sales totaling $12,287.

The indictment says that Techmedica fabricated fraudulent customer identities using photographs purchased from Istockphoto.com. Testimonials attributed to these fraudulent identities touted the effectiveness of the unapproved new drugs and misbranded drugs. The indictment alleges that Techmedica and Shua Vang (through Naturocare) also posted one of the Istockphoto.com photographs on their Web sites to fabricate a non-existent physician, Dr. Judy Hamilton, for the purpose of lending authenticity to and endorsing product claims about Diabeticine for customers with Type I and Type II diabetes and to endorse Thao. The person identified as Dr. Hamilton was in fact a model from California. This same model's photograph was also used by Pham on another Web site to fabricate a non-existent nurse, the indictment says, Bethany Hunt, RN, to tout the effectiveness of the unapproved new drugs and misbranded drugs.

The federal indictment also contains two forfeiture allegations, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged wire and mail frauds and involved in the money laundering conspiracy, including $17,421,059 (which represents the amount of proceeds obtained as a result of the wire and mail frauds and involved in the money laundering conspiracy), as well as five parcels of real estate (three in Springfield, and one each in Rogersville, Mo., and Pleasant Hope, Mo.), a 2007 Toyota RAV 4, a 2006 Hummer H2, a 1999 Mercedes Benz, and various bank accounts.

Wood cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Food and Drug Administration - Office of Criminal Investigation.