Wheat, Hi-Tech Fined $40M For Violating Court Order On FTC Complaint

Following his recent arrest in a separate federal enforcement, Hi-Tech Pharmaceuticals CEO Jared Wheat and his firm are fined $40m for violating a 2008 court order on an FTC complaint about fraudulent weight loss claims. The financial sanction is justified by a “pattern of contemptuous conduct,” the judge said.

A “pattern of contemptuous conduct” by Hi-Tech Pharmaceuticals Inc. andCEO Jared Wheat justifies a $40m fine for violating an order, made on a Federal Trade Commission complaint, against making bogus claims for weight loss supplements, a federal judge says.

The order in US District Court for the Northern Georgia District, coming days after Wheat and a second executive with...