Three CortiSlim Defendants Fined $4.5 million in Cash and Assets

WASHINGTON--Three defendants named in the Federal Trade Commission (FTC) case against Window Rock Enterprises Inc. will hand over $4.5 million in cash and assets to settle charges for their role in using weight loss and disease claims to market the CortiSlim and CortiStress, respectively. Under terms of the settlement, the defendants, Calif.-based Pinnacle Marketing Concepts and its president, Thomas Cheng, and Utah-based formulator Shawn Talbott, are hereby barred from making benefit or efficacy claims for any dietary supplement, food, drug, cosmetic, or device unless the claims are truthful and substantiated. Also, they cannot seek a cash refund of state or federal taxes for 2003, 2004, or 2005, that were paid prior to the settlement. Among the surrendered assets were an investment partnership and related charitable foundation, a speedboat, a truck, and a variety of real estate interests. Litigation continues against four other defendants who have not settled.

The final order against these three defendants was split. Pinnacle and Cheng, who were fingered for their role in marketing CortiSlim and CortiStress are required to give up to $3.4 million in assets, including $700,000 cash; the net proceeds from an investment partnership and related charitable foundation; a $215,000 boat; a $40,000 truck; and a $450,000 property lien. Talbott, who was the purported formulator of the two products and took part in their advertising, is required to give up to $1.12 million in assets, including $225,000 cash; $350,000 from equity in property in Centerville, Massachusetts, or title to the property; $38,700 from the sale of a timeshare in Hawaii, or the title to the timeshare; and cash equal to 80 percent of the current market value of a property in Lisbon, Ohio, or title to the property. In the event either defendant misrepresented their financial condition, avalanche clauses of $23.8 million for Pinnacle and Cheng, and $3.5 million for Talbott would come into effect.