A Florida man who served jail time in an earlier scheme in California has been arrested by the Miami Beach Police Department and agents from the Florida Office of Financial Regulation (OFR), amid allegations he swindled investors in a “yogurt-based product to re-grow hair,†OFR said.
Joseph P. Fox, president of Telogenesis Inc. of Miami Beach, was charged with Grand Theft and Organized Scheme to Defraud in his sale of Telogenesis stock.
Beginning in 2007, Fox sold Telogenesis stock for $1,000 a share to at least 59 investors. All in all, he gathered $380,000 in the scheme and used most of the money to support his lifestyle, OFR said.
In 2002, OFR said, Fox was charged with grand theft in California and served 270 days in jail.
The Telogenesis scheme was similar to the California scheme, OFR said.
Fox made “false representations†about the financial soundness of Telogenesis and its development of the yogurt-based hair product, positioning it as “a breakthrough in the cosmetic industry,†OFR said.
A website from which a Telogenesis product was pitched as being available “very soon†for $1,999 included links to medical journals that appeared to have no tie to the product — and also to Oprah Winfrey’s website.
Winfrey’s site also appeared to have no tie to the Telogenesis product, which was advertised on IGrowHair.com
It is not uncommon for hucksters to try to create the appearance that prominent medical organizations, celebrities and the government endorse products when they do not.
unk: