Indictment: Portsmouth business sold unapproved cancer drugs
PORTSMOUTH — A federal grand jury in Providence returned a 24-count indictment Tuesday alleging that a Portsmouth business, its owner and his wife marketed and sold in excess of $2 million dollars worth of products not approved by the Federal Drug Administration (FDA) as cancer mitigation and treatment options.
The indictment alleges that Daniel Chapter One, owner James Feijo and his wife, Patricia Feijo, engaged in the marketing and in the sale and distribution of unapproved health products and supplements 7 Herb Formula, Bio Shark and GDU, which were not generally recognized as safe and effective for use by the FDA. The business is located at 1028 East Main Road.
Additionally, the indictment alleges that the products, as marketed, were not generally recognized as safe and effective by qualified experts for the cure, mitigation, treatment, or prevention of cancer. The products were allegedly marketed and sold through various websites, in-store advertisements, a call center, on the Feijos’ daily radio program, and through the use of promotional materials and publications.
In addition, it is alleged that from 2006 through 2011, Mr. Feijo falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One.
It is alleged that during that time, Mr. Feijo failed to issue IRS Wage and Tax Statements, Forms W-2, accounting for employees’ wages and taxes withheld; through 2011, Daniel Chapter One paid employees through checks written out to cash; and that Mr. Feijo, for at least 16 quarters, failed to collect, account for and pay over employment taxes due the United States.
In addition, as charged in the indictment, it’s alleged that for at least two years Mr. Feijo failed to file individual tax returns with the IRS.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. The defendants will be summoned by the U.S. District Court in Providence for arraignment on a date yet to be determined.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly of the District of Rhode Island and trial attorney Jessica N. Moran of the Justice Department’s Tax Division.
The matter was investigated by members of the Rhode Island FDA Task Force from the North Providence and East Providence police departments, R.I. State Police and R.I. National Guard, and by IRS-Criminal Investigation.
The business is located at 1028 East Main Road. On its website, Daniel Chapter One describes itself as a religious ministry that started up nearly 30 years ago “to bring spiritual and physical healing to the sick, to promote healthy eating and Bible-based natural remedies, and to help support home churches world-wide.”
The Feijos, according to the website, “continue to meet and minister to people as the Lord directs, believing and teaching that Yahweh is Lord God of all creation and truly the Great Physician.”