Nutra Pharma Corp’s CEO settlement tops $79,000
Following news of a settlement between Nutra Pharma Corp defendants and the SEC in April, details of two settlements have now been made public.
As part of a final judgment in favor of the SEC;
- 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
Deitsch and McManus are both “permanently enjoined” from committing further violations of the Securities and Exchange Act. Deitsch is additionally banned from being an Officer or Director of a company for three years.
On May 16th the court ordered the parties to file a “further status update”. As per a May 15th Status Report from the SEC, this pertains to proceedings against Nutra Pharma Corp.
Since the parties’ last joint status update on April 15, 2024, the SEC has submitted, and the Court has entered, final judgments that have resolved all issues as to Nutra Pharma’s co-defendants.
To date, the SEC has not received additional information that Nutra Pharma indicated it would provide to facilitate a potential settlement of the remaining issues as to Nutra Pharma.
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.
As best I can tell Erik Deitsch’s first position of MLM significance was as the Chief Science Officer of Waiora.
In 2012 Waiora:
Yes, the missing zeolite lawsuit, less than 10% of the promised active ingredient was in the actual product. Waiora settled for 12 million dollars.
Deitsch seemed to take a lesson from this when he switched to selling literal snake oil with Nutra Pharma. There was even less cobra venom in Nyloxin than there was zeolite in the Waiora product but here is where Rik got smart, he called Nyloxin a homeopathic product.
In a “homeopathic” product the less active ingredient the more potent it is. So the fact that there wasn’t any cobra venom at all in Nyloxin made Nyloxin the most potent cobra venom on the planet or so so the theory goes.
Well that and all the securities fraud spelled the end for Nutra Pharma but not for Erik Deitsch, no Erik lands on his feet.
Rik is now the Chief Science Officer of a MLM company called Avini Health which among other things, sells zeolite products. I’m not sure if these too are homeopathic products.
Thanks for the heads up on Avini Health. Added to the review list.