CINCINNATI - "Smiling Bob," the goofy pitchman for male-enhancement product Enzyte, may not be smiling quite so broadly these days. Berkeley Premium Nutraceuticals, the company that distributes the product, is considering massive changes in the wake of its founder's conviction on charges the company bilked consumers out of $100 million by employing misleading ads, manipulating credit card transactions and refusing to cancel orders or accept returns.
The six-week trial - which saw founder and president Steve Warshak and several other BPN executives, including Warshak's mother, fall on charges that included conspiracy, bank fraud and money laundering - ended in February. The guilty parties are scheduled to be sentenced in August.
In the meantime, BPN says it's looking for a new image. Changes may include a new name for the company and new concepts for its pitches. "Smiling Bob" may have to go.
"With innovative marketing, customer loyalty and demand, and the continued commitment of its employees, vendors and retail partners, Berkeley will get back to the $200-million-per-year company it used to be," the company said in a statement released last week.
BPN distributes several lines of products it claims will boost energy, manage weight, improve memory and aid relaxation, but Enzyte is the company's flagship product. Not surprisingly, Enzyte's marketing was the source of most of the complaints against the company. According to court documents, former employees testified BPN created fictitious doctors to endorse the product, fabricated customer-satisfaction surveys and manufactured "research" to support Enzyte's effectiveness.
As for Warshak and the other defendants, they have forfeited more than $33 million in assets so far. In addition, Warshak faces as many as 20 years in prison.
The company, though, said it will bounce back.
"Despite the recent economic downturn, BPN has hired 70 employees in the last 45 days and looks to double the size of their call center by the end of '08," according to the statement released last week. "Plans are in place for more product launches and more aggressive recruiting."
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