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Showing results for tags 'fraud'.
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Celiac.com 05/18/2024 - In a recent turn of events following the shocking allegations against The Savory Fig bakery in Patchogue, New York, the gluten-free community has been left reeling from the discovery that products labeled as gluten-free and vegan may have contained undeclared wheat gluten. The incident, initially brought to light by John Stengel of Cindysnacks, has highlighted the critical need for stringent quality control and transparency in the food industry, particularly concerning dietary-restricted products like those for individuals with celiac disease. Nearly a month after The Savory Fig was called out for selling gluten bakery products that looked remarkably similar to regular Dunkin' Donuts, they issued the following recall on the New York State Department of Agriculture website: Despite The Savory Fig's voluntary recall and cooperation with authorities, the recall notice comes too late for many celiacs who unknowingly purchased and consumed the mislabeled products. The recall, issued due to possible undeclared wheat gluten, soy, and/or milk allergens in various baked goods, including doughnuts, frosted rolls, scones, and muffins, raises serious concerns about the safety and integrity of gluten-free products in the market. All Trust Lost in The Savory Fig Following the initial allegations, The Savory Fig faced significant backlash, leading to the closure of its Instagram page and a flood of negative comments on its Facebook page. However, for individuals with celiac disease, the recall notice offers little solace as the damage has already been done. Many in the celiac community expressed frustration and disappointment, emphasizing the urgent need for stricter regulations and oversight to prevent such incidents in the future. The recall notice serves as a stark reminder of the potential risks associated with mislabeled or fraudulent gluten-free products. It underscores the importance of due diligence and vigilance when purchasing and consuming gluten-free items, urging individuals with celiac disease to rely on trusted sources and verify the authenticity of products to safeguard their health and well-being. Read more at: agriculture.ny.gov
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Celiac.com 04/11/2023 - Batter Than Good Baking Co., an Oklahoma baking company that claimed to be gluten-free, has closed down, and apparently left town, after its products very publicly tested highly positive for gluten. Batter Than Good Baking's Gluten-Free Claims Challenged Rachelle Monica, a client of Batter Than Good Baking whose son has celiac disease initially conducted an at-home test when her son became sick after consuming their products. She then asked Gluten Free Watchdog, a group that tests and researches gluten-free products, to run a lab tests which confirmed her suspicions. The laboratory tests of Batter Than Good's Baking Flour found that it contained levels of gluten far too high to be considered mere cross-contamination. Batter Than Good Baking Denies Claims After a March 9th Facebook posting by Gluten Free Watchdog which stated that Batter Than Good’s Baking Flour tested positive for wheat flour, the company seems to have vanished. Bex Casillas, the chef and owner of the Batter Than Good Bakery, also took her personal Facebook down shortly after she posted that there had been cross-contamination found due to their “incubator kitchen” at Pioneer Technology Center. Pioneer Technology Center Responds to Cross-Contamination Allegations Pioneer then released a statement denying those claims saying “nothing has been baked in the incubator space since February 8th." Meanwhile, a former baker at Batter Than Good Baking told FOX23 that no one ordered the flour at the facility except Casillas. She said it was a “proprietary blend.” Customers with Celiac Disease Outraged Some customers who had purchased Batter Than Good's products expressed their outrage on social media. Many of them, like Monica's son, had celiac disease, which causes damage to the small intestine which is triggered by foods that contain gluten. She had trusted the gluten-free products, but says they made her son sick when he ate them. “If he had continued to eat it, it would’ve put him back in the hospital,” Monica said, showing a doctor's note from Ascension St. John Emergency Center, backing up her claims. Warnings Posted Gluten-Free Watchdog's page posted a warning after their test of Batter than Good Baking Co.'s products. The post has more than 700 comments from parents and clients, upset about the results. “My initial reaction as a parent was how can someone poison a child like that?” said Monica, who thinks it's wrong that someone can label food or a facility as gluten-free, when it's not actually be gluten-free. “Something needs to be done and it's really hard when it hurts our kids and it seems like nobody’s listening,” she explained. Machelle Beard was also a client of Batter Than Good Baking. She also has celiac disease, and says she views the company “100 percent...as poisoning me." Beard says she became sick after eating the baked goods, but didn't think it could be the bakery because of their gluten-free claims. “I do believe it was intentional. They were supposed to be a dedicated gluten-free facility, which means there is no chance of cross-contamination,” said Beard. “The testing proves it wasn’t cross-contamination. The testing proves it was just made with wheat,” added Beard. Efforts to reach business owner, Bex Casillas, via Facebook messenger, email were unsuccessful, and the phone numbers listed there are no longer working. The company appears to have pulled up stakes and vanished in the face of mounting anger and scrutiny over the seemingly non-gluten-free aspect of its "gluten-free" business model. Read more at Fox23
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Celiac.com 05/17/2021 - A gourmet gluten-free foodie was duped into using her business skills to support a "staggeringly sophisticated" multimillion-dollar tax scam to pay for a friend's luxury mansion. Melinda Jane Trembath, 45, founder of Melinda's Gluten Free Goodies, has been found guilty on four counts, including forging documents and attempting to influence a Commonwealth public official, but she escaped jail in a $3.6 million bid to defraud the Australian Taxation Office, after a Brisbane District Court judge found she was 'betrayed' by her friend. Trembath, who is the creator of food company Melinda's Gluten Free Goodies, apparently believed she was helping a longtime family friend to support cancer research. Instead, the mother of three became what the court called "a vital cog" in the scheme. The family friend, who has been charged but is yet to face court, had lost her mother to cancer. The woman is described as the main instigator of the elaborate scam, and allegedly created two biotechnology companies, appointing Trembath to be a director. The problems began in 2017, when the companies wrongly made a tax offset claim of $3.6 million. The court heard evidence, that when the ATO challenged the claim, Trembath used her extensive business experience to forge fake invoices and bank statements to support the questionable return. Trembath pleaded guilty to all four charges in the Brisbane District Court on Monday. According to prosecutors, Trembath played a significant role in the fraud, since she "agreed to be the director of two companies. She took active steps using her business skills to forge documents to perpetuate this fraud." According to the defense, Trembath was wrong, but did not deserve jail, since she was unaware that proceeds of the fraud were intended for the purchase of a mansion by the friend, rather than as support for cancer research as Trembath was led to believe. Trembath was handed a suspended sentence of 18 months, and released on $2000 recognizance and immediately released. Read more in The Daily Mail
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Celiac.com 07/16/2018 - Did weak public oversight leave Arizonans ripe for Theranos’ faulty blood tests scam? Scandal-plagued blood-testing company Theranos deceived Arizona officials and patients by selling unproven, unreliable products that produced faulty medical results, according to a new book by Wall Street Journal reporter, whose in-depth, comprehensive investigation of the company uncovered deceit, abuse, and potential fraud. Moreover, Arizona government officials facilitated the deception by providing weak regulatory oversight that essentially left patients as guinea pigs, said the book’s author, investigative reporter John Carreyrou. In the newly released "Bad Blood: Secrets and Lies in a Silicon Valley Startup," Carreyrou documents how Theranos and its upstart founder, Elizabeth Holmes, used overblown marketing claims and questionable sales tactics to push faulty products that resulted in consistently faulty blood tests results. Flawed results included tests for celiac disease and numerous other serious, and potentially life-threatening, conditions. According to Carreyrou, Theranos’ lies and deceit made Arizonans into guinea pigs in what amounted to a "big, unauthorized medical experiment.” Even though founder Elizabeth Holmes and Theranos duped numerous people, including seemingly savvy investors, Carreyrou points out that there were public facts available to elected officials back then, like a complete lack of clinical data on the company's testing and no approvals from the Food and Drug Administration for any of its tests. SEC recently charged the now disgraced Holmes with what it called a 'years-long fraud.’ The company’s value has plummeted, and it is now nearly worthless, and facing dozens, and possibly hundreds of lawsuits from angry investors. Meantime, Theranos will pay Arizona consumers $4.65 million under a consumer-fraud settlement Arizona Attorney General Mark Brnovich negotiated with the embattled blood-testing company. Both investors and Arizona officials, “could have picked up on those things or asked more questions or kicked the tires more," Carreyrou said. Unlike other states, such as New York, Arizona lacks robust laboratory oversight that would likely have prevented Theranos from operating in those places, he added. Stay tuned for more new on how the Theranos fraud story plays out. Read more at azcentral.com.
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Celiac.com 12/16/2013 - Numerous popular herbal products may be contaminated or may contain unlabeled substitute ingredients and fillers, meaning that they are not what their labels claim. According to the World Health Organization, adulterated herbal products are a potential threat to consumer safety. These revelations came to light after a group of Canadian researchers conducted an investigation into herbal product integrity and authenticity, with hopes of protecting consumers from health risks associated with product substitution and contamination. Using a test called DNA barcoding, a kind of genetic fingerprinting that been effective in uncovering labeling fraud in other commercial industries, the researchers found that nearly 60% of herbal products tested were not what their label claimed them to be, and that pills labeled as popular herbs were often diluted or replaced entirely, sometimes with cheap fillers that could be dangerous to consumers. In all, the researchers tested 44 herbal products from 12 companies, along with 30 different species of herbs, and 50 leaf samples collected from 42 herbal species. The researchers were Steven G. Newmaster, Meghan Grguric, Dhivya Shanmughanandhan, Sathishkumar Ramalingam and Subramanyam Ragupathy. They are variously affiliated with the Centre for Biodiversity Genomics, Biodiversity Institute of Ontario (BIO) at the University of Guelph, the Bachelor of Arts and Science Program at the University of Guelph in Guelph, Ontario, Canada, and with the Plant Genetic Engineering Laboratory, Department of Biotechnology, Bharathiar University in Tamil Nadu, India. Their laboratory also assembled the first standard reference material (SRM) herbal barcode library from 100 herbal species of known provenance that were used to identify the unknown herbal products and leaf samples. The team recovered DNA barcodes from most herbal products (91%) and all leaf samples (100%), with 95% species resolution using a tiered approach (rbcL + ITS2). Nearly 60% of the products tested contained DNA barcodes from plant species not listed on the labels. That means they were not what the label said they were. Furthermore, even though 48% of the products contained authentic ingredients, one-third of those also contained contaminants and/or fillers not listed on the label. The air data showed clearly that most herbal products tested were not what their labels claim, while most of the rest were poor quality, and often contained unlabeled, possibly dangerous, product substitute, contamination and fillers. They note that selling weak, ineffective, or mislabeled herbal supplements reduces the perceived value of otherwise helpful products by eroding consumer confidence. The study team recommends that the herbal industry embrace DNA barcoding to ensure authentic herbal products by effectively documenting raw manufacturing materials. They suggest that the use of an SRM DNA herbal barcode library for testing bulk materials could provide a method for 'best practices' in the manufacturing of herbal products, and note that this would provide consumers with safe, high quality herbal products. What do you think? Should herbal products and supplements be tested, authenticated and verified? Share your thoughts below. Source: BMC Medicine 2013, 11:222. doi:10.1186/1741-7015-11-222
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Celiac.com 04/09/2011 - A Durham, North Carolina man is currently on trial for fraud after being accused of deliberately selling bread labeled gluten-free that contained gluten, and which sickened more than two dozen people with food allergies. According to a Wake County prosecutor, the man, Paul Seelig, owner of Great Specialty Products, repeatedly lied to customers about the ingredients in his bread. Seelig faces more than two dozen fraud charges for taking customers' money under false pretenses. Prosecutors plan to call almost 50 witnesses. Prosecutor Evans told jurors that witnesses would include two dozen customers who suffer from celiac disease and gluten intolerance, and who became ill after eating Seelig's products, along with the University of Nebraska experts who tested the bread. Evans said a former employee would testify that Seelig told her to lie to investigators about their operation, and that, during the State Fair, Seelig sent her and other workers to buy standard bagels at Costco and B.J.'s that Seelig's operation sold as gluten-free. "What this case is about is misrepresentations built on top of misrepresentations that this defendant made to people with medical conditions," Assistant District Attorney Shawn Evans said Tuesday during opening arguments in the trial. "The consequence was that many people got sick." According to prosecutors, Seelig knowingly misrepresented his bread as handmade, prepared in a dedicated gluten-free facility, and tested weekly for gluten contamination. Defense lawyer Blake Norman of Durham says Seelig, who reportedly suffers from Crohn's disease and cannot eat gluten, is merely a businessman who was looking to offer "reasonably priced gluten-free products" for consumers who suffer from food allergies. Norman also told jurors that Seelig would take the stand to tell his side of the story. However, Seelig might face an uphill battle for credibility if his criminal past comes under scrutiny. He has spent time in prison for two separate criminal convictions, the first for grand theft in 1991, which sent him to prison for more than two years, and a second in 2002, when Seelig was convicted in federal court of wire fraud and sentenced to four months in prison followed by three years of federal probation. If convicted of all the charges in the Wake County cases, Seelig, 48, faces at least eight years in prison if sentenced to consecutive terms. Source: Newsobserver
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