California resident Randy Olshen of Newport Beach has pleaded guilty in federal court in Utah. The charges against him stem from a fraudulent investment scheme in which he took $7 million from investors for his sports drink company Innovative Health Solutions, LLC. He did so by lying to individuals about the company’s finances.
Olshen pleaded guilty to mail fraud and money laundering charges. This was part of a 38-count indictment filed last September, resulting from his position as founder and president of the sports drink manufacturing company.
As part of his plea agreement, Olshen admitted to falsifying records regarding energy drink sales. He claimed that the company had $1.1 million in sales in 2009 and $9.9 million in sales in 2011. However, the actual figures were $98,275 and $228,802, respectively. He kept a false set of books to show investors, forged documents and failed to disclose a bankruptcy filing from 2011. He also used company money for personal use.
Olshen agreed to make restitution to 50 victims of his investment fraud. He has negotiated a sentence of 4.5 years in prison with an additional 3 years of supervision upon release.
Unfortunately, instances like this occur all too often. If you have been the victim of Olshen’s fraudulent investment scheme or if you have been the victim of another investment fraud, you may have certain legal rights that require immediate attention. Contact Los Angeles investment fraud attorneys at Dimond, Kaplan & Rothstein, P.A. to set up a consultation today to discuss your legal rights or to set up an appointment at our Los Angeles office.