Dietary supplement company Hi-Tech Pharmaceuticals, Inc. and its CEO, Jared Wheat, were convicted by a federal jury of wire fraud after “fabricating documents to deceive customers into believing that the company was certified as compliant with industry manufacturing standards.”
In 2007, the U.S. Food and Drug Administration (FDA) issued new mandatory guidelines on sanitary, hygienic and production process controls for dietary supplements companies called Good Manufacturing Practices (GMP). FDA does not certify that companies are following GMP so many manufacturers seek certification from third-party independent auditors.
In 2010, Hi-Tech retained a reputable third-party auditor to inspect its facilities, which found 75 categories that “were not compliant with GMP” including gaps and holes in facility doors that could let rodents enter, products exposed to dust and other contaminants, and critical lapses in specifications and testing for raw materials and finished products.
According to U.S. Attorney Theodore S. Hertzberg, instead of fixing the quality and safety issues, Hi-Tech fabricated a certificate in 2011 purportedly issued from a company called “PharmaTech Consulting,” stating the company complied with GMP. One of Wheat’s former attorneys in Belize was listed as the “general manager of PharmaTech” and the signature was forged on the certificate. Hi-Tech did not disclose Wheat owned “PharmaTech.”
Additionally, Hi-Tech doctored the inspection report issued by the third-party auditor to make it appear that “PharmaTech” issued the favorable audit, altering the 75 deficiencies from “Not Acceptable” to “Acceptable.” Hi-Tech also fabricated FDA export documents called Certificates of Free Sale, which indicate that food products are marketed in the United States are eligible for export “by altering dates and product names.”
According to Hertzberg, Hi-Tech reportedly sent all these fraudulent documents to its customers on dozens of occasions between 2011 and 2013. In many cases, customers forwarded the documents to foreign regulators and paid around $4.7 million to Hi-Tech.
On Nov. 21, 2025, Wheat was convicted of wire fraud and faces a maximum of 20 years in prison followed by three years of supervised release. Wheat was previously convicted of drug trafficking conspiracy in 1991, and conspiracy to commit mail and wire fraud and to “introduce misbranded, adulterated and unapproved drugs into interstate commerce” in 2009.
Hi-Tech was convicted of wire fraud conspiracy, wire fraud, money laundering conspiracy and money laundering. The company faces a fine of nearly $10 million and probation of up to five years.
“After two prior federal felony convictions, Wheat yet again put profits over product quality and consumer safety by forging documents purporting to show that an independent, third-party audit company had certified Hi-Tech as complying with Good Manufacturing Practices. As a result of the defendants’ deceit, Hi-Tech received millions of dollars from customers who relied on the fabricated documents,” Hertzberg said. “The defendants’ fraudulent scheme was uncovered through years of dedicated investigation and collaboration among law enforcement partners, and the verdict signals that companies that lie will face stern consequences.”
For more information, visit www.justice.gov.
