$680K final judgment in Nutra Pharma’s SEC fraud case
The SEC has secured a $680,235.05 final judgment against Nutra Pharma.
Nutra Pharma’s final judgment is made up of:
- $520,940 in disgorgement;
- $59,295.05 in prejudgment interest; and
- $100,000 in civil penalties
MyNyloxin was an MLM company that marketed Nutra Pharma Corporation’s Nyloxin pain-relief product.
Supposedly, Nyloxin’s active ingredient was cobra venom.
MyNyloxin collapsed in January 2015. A reboot company Lumaxa was launched but didn’t last long.
In late 2018 the SEC filed a lawsuit against Nutra Pharma Corporation, alleging securities fraud and share price manipulation.
In addition to Nutra Pharma, the SEC also sued CEO Erik Deitsch and consultant Sean McManus.
- Erik “Rik” Deitsch, former CEO of Nutra Pharma Corp, was ordered to pay $44,046 in disgorgement, $5013 in prejudgment interest and a $30,000 civil penalty
- Sean McManus, a Nutra Pharma Corp consultant, was ordered to pay $5,500 in disgorgement, $625 in prejudgment interest and a $5500 civil penalty
In 2019 the FDA issued Nutra Pharma and Deitsch with a warning letter. Among other things, Nutra Pharma was marketing MyNyloxin as a treatment for drug addiction, chronic arthritis, Parkinson’s disease and cancer.
The claims were unsubstantiated and saw the FDA classify MyNyloxin’s product range as “unapproved new drugs”.
Today Erik Deitsch is CSO of Avini Health.
As reviewed by BehindMLM in May 2024, Avini Health is an MLM autoship recruitment scheme that pitches “advances in natural healing”.