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A California resident has pleaded guilty in federal court in Utah to charges involving a fraudulent investment scheme in which he took in $7 million from investors for his sports drink company by lying to them about the company's finances and prospects.
Randy Elliot Olshen, 52, of Newport Beach, Calif., pleaded guilty to mail fraud and money laundering charges that were part of a 38-count indictment handed up against him in September of last year.
Olshen, a former Park City resident, is to receive a prison sentence of 4½ years with three years of supervision upon release, according to his plea agreement.
Olshen was a founder and president of Innovative Health Solutions, LLC, which manufactured and sold sports drinks designed to boost energy and stamina.
As part of the plea agreement, Olshen admitted that he had told investors that Innovative Health Solutions had $1.1 million in sales in 2009 when it only had $98,275 in sales. He also admitted that he told investors that 2011 sales were $9.9 million when the correct figure was $228,802.
Olshen also kept a false set of books to show investors, forged paperwork, failed to disclose a 2011 bankruptcy filing and took company funds for personal use beyond his stated salary.
He agree to pay restitution to the 50 victims of his fraud, with the schedule of payments to be determined at sentencing.
Sentencing is scheduled for July 29 before U.S. District Court Judge Dale Kimball, who can approve or reject the negotiated sentence.
Before the plea agreement, he had been facing possible prison sentences of up to 20 years and fines of up to $500,000.