A Portsmouth husband and wife and owners of Daniel Chapter One today were indicted on 24 counts of selling unapproved health products and supplements they claimed would fight cancer in addition to charges of tax evasion and failing to file taxes on millions in profits from their online and retail business.
United States Attorney Peter F. Neronha announced the federal grand jury indictment that alleges James Feijo and his wife, Patricia, marketed and sold unapproved health products and supplements that the FDA does not recognize as safe and effective treatments.
The supplements, sold under the names 7 Herb Formula, Bio Shark and GDU, are not recognized as safe and effective treatments for cancer but the Feijos reportedly touted their potential cancer-fighting attributes in online advertisements, ads in their Portsmouth retail store, with a call center and on a daily radio program hosted by Feijo.
In addition, the indictment alleges that James Feijo lied to his employees and told them they were general contractors when they “in truth were employees of Daniel Chapter One,” Neronha said in a release. The deception included Feijo’s failure to issue the employees W-2s or deduct taxes from their checks, instead paying them through checks written out to cash.
The indictment also alleges that Feijo failed to file individual tax returns with the IRS, skirting paying taxes on more than $2 million in proceeds gained from the business.
In the indictment (see attached .PDF), Daniel Chapter One marketed the above mentioned products as “Chapter One’s Cancer solutions.”
The products are still available on Daniel Chapter One’s Web site, though references to their purported cancer-fighting attributes are absent.
Jim Feijo describes himself as a “expert on sports training and fitness” and has a bachelor’s degree of science in health, biology and physical education and a master of education in psychological services from Springfield College, according to the company’s Facebook page.
Tricia Feijo describes herself as a “classical homeopath” and cites her graduation from the New England School of Homeopathy in her bio. She also claims to have “worked for several years in cancer research.”
The company’s Facebook pages and Web site are filled with Christian references and many of the products are labeled as “God’s gift,” among other descriptions. And the company name, Daniel Chapter One, refers to a Bible passage in which Daniel, son of Judah, chooses not to defile himself with the king’s meat and wine and instead, opted to eat “pulse,” or vegetables and water.
But the indictment alleges the Web site was also full of false claims and lies, such as the claim that 7 Herb Formula , which is currently on sale for $76.26 for 32 ounce bottle “fights tumor formation.”
The formula, which contains water, cats claw, burdock root, eleutherococcus senticosus, sheep sorrel, slippery elm, watercress and turkey rhubarb, “is not intended to diagnose, treat, cure or prevent any disease,” the Web site now states.
The Feijos will be arraigned on an undermined date.
The case was investigated by the Rhode Island FDA Task Force from the North Providence and East Providence police departments along with the state police, Rhode Island National Guard and by the IRS Criminal Investigation unit.