Scottsdale Man Pleads Guilty to Bringing in Chinese Viagra-Type Drug and Fraud Charges

Categories: Crime Blotter

What a scammer!

Timothy Keay Isaac, 47, pleaded guilty today in federal court to a slew of charges related to his illicit company, which brought into the country a Chinese Viagra-like drug without prescriptions.

But this is the part that bugs us: In 2006, Isaac applied for disability benefits from the Social Security Administration and received $35,000. Yet that very same year, the con-man took out a mortgage on a $2.9 million house. Our question: Where was the Social Security Administration -- do they investigate claims at all?

Scroll down for the news release from the U.S. Attorney's Office:

SCOTTSDALE MAN PLEADS GUILTY TO MULTIPLE FEDERAL CHARGES RELATED TO MARKETING OF SEXUAL ENHANCEMENT DRUG

PHOENIX - Timothy Keay Isaac, 47, of Scottsdale, Ariz., pleaded guilty earlier this week to Conspiracy, Introducing Misbranded Drugs into Interstate Commerce, Making False Tax Returns, Filing False Declarations in a Bankruptcy Proceeding and Theft of Government Money.

According to the plea, Isaac, through his companies Ultra Health Products, Bionate International and Johnston-Keay, marketed a product called Vinarol that he claimed would promote sexual enhancement and was an all-natural herbal dietary supplement. Isaac and others failed to disclose that Vinarol actually contained sildenafil citrate, the active chemical ingredient in the prescription drug Viagra, and did not require customers to provide a physician's prescription before receiving Vinarol. Isaac and others had smuggled the sildenafil citrate from China into the United States without declaring the merchandise for invoicing as required by Customs law.

Bryan and Laura Gillette, who were charged in the Indictment along with Isaac, pleaded guilty earlier this month to one felony count each of introducing misbranded drugs into interstate commerce.

In 2004, Isaac filed for bankruptcy under Chapter 11 but failed to disclose his interest in Ultra Health, Bionate, or Johnston-Keay and claimed his monthly income was $0.00. In 2006, Isaac filed for Disability Insurance Benefits with the Social Security Administration and was subsequently awarded benefits in excess of $35,000. During 2006, Isaac also obtained a mortgage in the amount of $2,175,000 in order to purchase a $2.9 million dollar home in Desert Mountain, Scottsdale, Ariz. In October 2006, Isaac also filed an Individual Income Tax Return for 2005 reporting a zero taxable income and a zero tax liability when he actually had taxable income of $80,103. Isaac filed similar returns for the tax years 2006 and 2007 reflecting the zero balances when in fact his actual taxable income was $75,881 and $388,687 for the years 2006 and 2007 respectively.

A conviction for Conspiracy carries a maximum penalty of five years imprisonment, a $250,000 fine or both. A conviction for Introduction of Misbranded Drugs or Filing a False Tax Return each carry a maximum penalty of three years, a $250,000 fine or both. A conviction for False Declaration in Bankruptcy carries a maximum penalty of five years, a $250,000 fine or both. A conviction for Theft of Government Funds carries a maximum penalty of 10 years, a $250,000 fine, or both. In determining an actual sentence, the judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

The investigation preceding the Indictment was conducted by the U.S. Food and Drug Administration Office of Criminal Investigations. The investigations involved in the Information were conducted by the Internal Revenue Service--Criminal Investigations Division, the United States Trustees Office, and the Social Security Administration. The prosecution is being handled by Special Assistant U.S. Attorney Steven Tave, of the FDA, and by Peter Sexton Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER: CR-08-0036-PHX-PGR

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5 comments
Mystic
Mystic

You're right Ashley... I was there when the agents raided the house and herded us into the living room.  I wasn't in on any of his private meetings so I can't say if he knew about illegal doings or not... but what I do know is this... he screwed me out of $6,000 for my services which he never paid me.

Ibloom
Ibloom

So to be clear they prosecuted these people because of contaminated pills USA Today reports they explained that this Vinerol thing was an isolated contaminated batch and recalled any batches sold, furthermore no one appears to have complained http://www.usatoday.com/news/h... but then it winds up being a tax evasion case? Why is the FDA involved in a tax evasion and real-estate and false income claims case? Is it me or is there something not quite clear with this whole case?!

Musik333
Musik333

I don’t buy it! Why blame the company for circumstantial evidence, it’s a shame that almost a thousand people must lose their jobs in a bad economy. How many celebrities do we hear about having problems with the IRS? http://www.backtaxeshelp.com/t.... The Vinerol product has nothing to do with the tax issue the company has explained that the batch in question by the FDA was contaminated by tempering in China. This reeks of political backlash from some politician not getting enough kickbacks.

Guest
Guest

So I read the document from FDA, that these people are accused of “fraud” and tax evasion and it is my understanding this is from 2003 so why are they just going to jail now? This has got nothing to do with the “Vinerol” clearly it’s about the “Money”. they explained that the batch of contaminated pills was recalled and the contamination was eliminated, so why is the FDA still prosecuting the company? (see http://www.usatoday.com/news/h... The bottom line the government wants their cut of the money, and they are not interested in the drugs, or the ingredients in them.

Relax...
Relax...

Actually the innocents were the young kids that suffered that garbage, Timmy,Eric,Anthony,Noelle and others that escape my mind. Those were the real people that suffered the reprocusions of thier ELDERS greed. Cry and moan about the past but those that truely were close to these familys KNOW the reality of what came of all this and should all move on and stop the petty things.

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