Entrepreneur Sentenced, Ordered to Forfeit $650,000 for Distributing Anabolic Steroids as Dietary Supplements

Memphis, TN – Joseph De Melo, Sr., a 59-year-old resident of New Orleans, LA, was sentenced yesterday to 15 months in federal prison for illicitly distributing anabolic steroids and intentionally misbranding a dietary supplement that secretly contained erectile dysfunction drugs.

De Melo owned Rezultz Distribution LLC, a supplement retail store located in Carrollton, Texas. He used the establishment to sell purported dietary supplements throughout the United States, including the Western District of Tennessee.

In September 2012, De Melo began conspiring with individuals to distribute pills of products containing anabolic steroids, which are Schedule III controlled substances. By the time De Mello’s illegal endeavors ended in September 2013, approximately 40,000 pills had been distributed nationwide.

Over the aforementioned time period, De Melo also distributed a purported dietary supplement called "Vertical," which contained unlisted erectile dysfunction drugs; false and misleading ingredients were listed on the drug’s labeling.

De Melo managed to obtain over $650,000 in proceeds from his scheme, which he deposited into various financial accounts. In addition to his sentence, De Melo has agreed to forfeit the proceeds made from his illicit pill distribution.

De Melo was sentenced by U.S. District Judge S. Thomas Anderson. There is no parole offered in the federal prison system.

The case was investigated by the Food and Drug Administration Office of Criminal Investigation. Assistant U.S. Attorneys Tony R. Arvin, Christopher E. Cotten, and Damon K. Griffin represented the government in this case.