Michigan man pleads guilty to 'Net fraud

GRAND RAPIDS, Mich., July 6 (UPI) -- A Michigan business owner pleaded guilty in federal court to fraudulently marketing dietary supplements over the Internet, the U.S. Justice Department said.

Tony Pham, 40, of Grand Rapids pleaded guilty before U.S. District Judge Richard E. Dorr to the charges in an April 2, 2009, indictment, the department said in a news release. Pham owned and operated Techmedica Health and admitted he used Techmedica to repackage, sell, market and distribute unapproved new drugs and misbranded drugs over the Internet, fraudulently claiming the supplements could prevent, treat or cure a number of diseases.

Pham also pleaded guilty to one count of wire fraud related to payments in the form of a wire transfers to a bank account.

The businessman sold $11.9 million worth of those products in 2005 and 2006, using several different Web sites that published materially false testimonials, product information and identification of medical professionals, the department said.

Pham also agreed to forfeit to the government the money he received from the sales.

Pham could be sentenced up to 25 years in federal prison without parole, plus a fine up to $500,000 or twice the gross gain.