UNITED STATES
v.
ANGELA DEāMERE LANE
CRIMINAL NO. 2:04CR / / /
18 U.S.C. Ā§ 371
18 U.S.C. Ā§ 1341
18 U.S.C. Ā§ 1343
FILED JULY 29, 2004
INDICTMENT
The Grand Jury charges that:
COUNT ONE
From on or about January 18, 1998, to on or about December 31, 2001, in the Northern District of Mississippi and elsewhere, ANGELA DEāMERE LANE, defendant, did knowingly conspire with others to execute a scheme to defraud persons by the mails, interstate commercial carriers, and interstate wire communications, in violation of 18 U.S.C. Ā§Ā§ 1341 and 1343.
The following were parts of the conspiracy:
1) ANGELA DEāMERE LANE, defendant, and other conspirators would obtain merchandise to be sold as an all natural dietary supplement called Erdic, represented as having the ability to permanently enhance the fullness and firmness, and increase the cup size, of female breasts;
2) ANGELA DEāMERE LANE and another conspirator did devise a formula for all natural dietary supplements for products to be caned Phoenaz and Adagin purportedly to enhance permanently the fullness and firmness of female breasts and to increase permanently the cup sizes of female breasts, and to increase the size and girth of male penises and increase the libido of men who took the dietary supplements.
3) A conspirator contracted American Supplement Technologies and Preferred Price Plus/Healing America, dietary supplement manufacturers, to make the supplements based on the devised formula;
4) ANGELA DEāMERE LANE, defendant, and other conspirators would utilize three company names to sell the merchandise to the public, being Busting Loose, Inc., Dazzle, Inc., and Phoenaz, Inc., in directing the sale and distribution of the merchandise to the public from their business locations in Clarksdale, Mississippi;
5) ANGELA DEāMERE LANE, defendant, and other conspirators would sell the merchandise through radio advertisements, mailed advertisements, and other venues, making representations about the product which DEāMERE LANE, defendant, and other conspirators knew to be untrue or for which the defendants had reckless disregard as to the truth about the ability of the supplements to enhance and enlarge female breasts and male penises;
6) ANGELA DEāMERE LANE, defendant, and other conspirators would accept payment for the supplements by interstate wire communications, accepting credit card accounts and other access device accounts as payment by customers for the purported supplements;
7) ANGELA DEāMERE LANE, defendant, and other conspirators would accept payment for the supplements by mailings through the U. S. mails containing checks and money orders as payment by customers for the purported supplements;
8) ANGELA DEāMERE LANE, defendant, and other conspirators would ship the products to customers by interstate commercial carriers;
9) ANGELA DEāMERE LANE and other conspirators would lull customers by encouraging them to continue purchasing additional orders and using the supplements for longer time periods, explaining it took two or three months or even longer before the customers would see results, including making such representations [as] āif you havenāt seen results in the first couple of months, the product requires that you stay on the product longer because of your metabolism,ā and āresults depended on how well and how fast Phoenaz works with your individual. Chemistry and metabolismā;
10) ANGELA DEāMERE LANE, defendant, and other conspirators would instruct employees to sell more of the dietary supplement to customers who complained that the product was not working, by assuring them that the product sometimes took longer to work on some individuals;
11) ANGELA DEāMERE LANE, defendant, and other conspirators would refuse to cancel orders for complaining customers and instruct employees to refuse to cancel orders, refuse to ship products and continue to charge customersā credit cards for products despite customersā cancellations of orders, and fight and refuse attempts from customers to have charges refunded for cancelled orders.
OVERT ACTS
To accomplish the conspiracy and its objectives, ANGELA DEāMERE LANE, defendant, and other conspirators knowingly did commit overt acts, among which were the following:
1. On or about December 7, 1998, a conspirator created a formula for āAdaginā and negotiated with American Supplement Technologies to manufacture āAdagin.ā
2. On or about January 11, 1999, a conspirator created a formula for āPhoenazā and negotiated with American Supplement Technologies to manufacture āPhoenaz.ā
3. On or about January 27, 1999, a conspirator promised customer SJW, New Brighton, Minnesota, that her credit card account would be credited for returned product, but the conspirator did not credit the account as promised.
4. On or about June 30, 1999; ANGELA DEāMERE LANE, defendant did not allow an employee to cancel an order for āErdicā made by customer LB, but informed the employee to ship the product to LB, despite cancellation of the order.
5. On or about September 1, 1999, ANGELA DEāMERE LANE, defendant, and the other conspirators did send out, and cause to be sent, āPhoenazā brochures, by the U.S. Mails, representing that the dietary supplement was a breast enhancement tablet.
6. On or about October 18, 1999, ANGELA DEāMERE LANE, defendant, directed an employee to tell customer DM that DM was not seeing enhanced size in her breasts because she had not been taking the product long enough and to encourage customer DM to purchase another two-month supply of āErdicā for $495.00.
7. 0n or about December 1, 1999, ANGELA DEāMERE LANE, defendant, and the other conspirators did send out, and cause to be sent, āAdaginā brochures, by the U.S. Mails, representing that the dietary supplement was a male organ enhancement tablet.
8. On or about March 24, 2000, a conspirator promised customer EZ, Bloomfield Hills, Michigan, that her credit card account would be credited for a cancelled product order, but the conspirator did not credit the account as promised.
9. On or about April 26, 2000, a conspirator promised customer JH, Eagle, Minnesota, that her credit card account would be credited for a cancelled product order, but the conspirator did not credit the account as promised.
10. On or about May 1, 2000, a conspirator took an order from customer MG, Ross, Ohio, for product and charged her for the product but did not deliver the product as promised.
11. On or about June 21, 2000, a conspirator took an order from customer DS, Valparaiso, Indiana, for product and charged him for the product but did not deliver the product as promised.
12. On or about July 5, 2000, conspirator took an order from customer IM, Schaumburg, Illinois, for product and charged him for the product but did not deliver the product as promised.
13. On or about July 14, 2000, a conspirator took an order from customer CC, Taylor, Michigan, for product and charged her twice for the product.
14. On or about July 14, 2000, a conspirator took an order from customer EH, Rochester, New York, for product and charged him for the product but did not deliver the product as promised.
I5. On or about July 28, 2000, a conspirator made an unauthorized order for customer DF, North Rose, New York, for product, charged him for the product, and did not deliver the product.
16. On or about September 2, 2000, a conspirator took an order from customer SJ, Johnson City, Tennessee, for product and charged him twice for the product.
17. On or about September 4, 2000, a conspirator made an unauthorized order for customer ME, Columbia, Tennessee, for product, charged her for the product, and did not deliver the product.
18. On Or about September 11, 2000, a conspirator took an order for customer KC, Franklin, Kentucky, for product, charged him for the product, and did not deliver the product.
19. On or about September 13, 2000, a conspirator took an order for customer GL, Crandall, Georgia, for product, charged him for th
