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The encyclopedia · Advertising & PR · Marketing decision · 2008

Enzyte's 'Smiling Bob' infomercial sold a supplement — and its maker ended up in prison

2008: Enzyte's deceptive 'Smiling Bob' ads billed customers ~$100M — founder Steve Warshak was convicted of fraud and sentenced to 25 years.

Berkeley Premium Nutraceuticals · 2008-08

What happened

Enzyte, a sexual-performance supplement made by Berkeley Premium Nutraceuticals of Forest Park, Ohio, was pitched through a long-running infomercial built around 'Smiling Bob' — a goofy, grinning man whose life dramatically improves once he starts taking the product.

The advertising was the fraud. Prosecutors said the company billed customers out of roughly $100 million through deceptive ads, manipulated credit card transactions, and a refusal to accept returns or cancel orders. On February 22, 2008 a federal jury in Cincinnati convicted founder Steve Warshak of conspiracy to commit mail fraud, bank fraud and money laundering; his mother was convicted on related charges.

In August 2008 Warshak was sentenced to 25 years in prison and fined $93,000, with the court noting he had 'preyed on customers' sexual deficiencies'. The company was also ordered to disgorge hundreds of millions of dollars in profits. An advertising campaign that worked too well had made its own maker the target of a federal fraud case.

Why it happened

  • The infomercial's whole pitch — that Enzyte transformed men's lives — misrepresented what the product could do.
  • Deceptive billing and refusal to cancel orders turned marketing into fraud.
  • The campaign was so effective it billed customers out of ~$100M, which became the criminal case against its maker.
What it cost~$100M billed; founder 25 yearscostly

The lesson

Advertising that sells on a fabricated promise is more than a marketing failure: when the billing is also deceptive, the campaign itself becomes the evidence that sends the marketer to prison.

Aftermath

Warshak was sentenced to 25 years in prison and ordered to surrender in September 2008; the company faced a separate judgment to hand over hundreds of millions in profits. The case became a benchmark for how deceptive supplement advertising can cross into criminal fraud.

Sources

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