Randy Olshen Allegedly Ran Sports Drink Scam
A federal grand jury in Salt Lake City has returned a 38-count indictment against Randy Olshen, accused him of mail and wire fraud, and also of defrauding investors and laundering money from his company which specialized in sports drinks. Randy Olshen, age 51, of Newport Beach, California, lived in Park City, Utah when, in 2009, he allegedly started to concoct paperwork which inflated the value of his company, Innovative Health Solutions (IHS), an entity founded in 2008, and maker of H2O Ovrdrive . The indictment alleges that Olshen, one of the founders and president of IHS, claimed the company to have contracts with multiple national chains, such as Costco, Rite Aid, CVS, and Food Lion. Olshen faces up to life in prison and millions of dollars in fines if convicted on all counts of money laundering, mail and wire fraud. In sum, the indictment alleges that Olshen solicited and received more than $7 million from 50 or more victims as a part of his parched scheme.
Olshen Misrepresented Annual Sales Figures for Innovative Health Solutions, Allegedly
According to the indictment, Olshen sought investors and made representations to encourage investments in the company, and that, beginning around 2009 and continuing until February 2013, concocted a scheme to defraud IHS investors and redirect a cut of the invested funds for “purposes not disclosed to investors in a manner inconsistent with his representations and promises.” Starting in 2009, according to the indictment, he told investors that IHS had approximately $1.1 million in sales in 2009, when, in reality, it had only approximately $98,275 in sales in 2009. In addition, the indictment alleges, Olshen represented that IHS had more than $28 million in sales in 2012, when in fact, it had approximately $579,239 in sales for that year.
Investment Fraud Lawyers Investigating
The Peiffer Wolf Carr & Kane securities attorneys often represent investors who lose money as a result of investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.