CEO of Enhanced Athlete arrested for alleged probation violations
By Scott Rodd – Staff Writer, Sacramento Business Journal | Feb 12, 2018, 6:39am
Scott Cavell, CEO of Sacramento-based nutritional supplements distributor Enhanced Athlete Inc., has been arrested for allegedly violating his parole from a previous fraud conviction and could face up to two years in prison.
According to documents filed in the U.S. District Court for the Eastern District of California, Cavell is accused of parole violations including possession of marijuana, use of controlled substances, failing to report an expenditure over $500 and traveling out of the judicial jurisdiction without permission.
The violations came to light as a result of searches executed by the U.S. Food and Drug Administration at an Enhanced Athlete facility and Cavell's residence, according to court documents.
In 2009, Cavell was involved in a multimillion-dollar mortgage scheme with Roseville-based Loomis Wealth Solutions. He was a fugitive until 2012, when Ireland authorities arrested him on marijuana possession charges and extradited him to the U.S. Cavell pleaded guilty to wire fraud and was released from prison in 2016.
The former president of Loomis Wealth Solutions, Lee Loomis, was sentenced to 12 years in prison last week.
Enhanced Athlete has been tied up in legal battles since July. In two civil lawsuits, the company is accused of selling controversial and potentially dangerous supplements, including selective androgen receptor modulators, or SARMs, and 2,4-Dinitrophenol, or DNP. Arizona-based supplements company Nutrition Distribution LLC filed the two lawsuits in federal court. One of the suits alleged that European authorities raided several facilities connected to Enhanced Athlete after the company set up shop in the United Kingdom.
Cavell has denied that the company sells DNP.
The lawsuits also name former Sacramento bankruptcy lawyer Anthony Hughes, claiming he is an employee of Enhanced Athlete. The company, however, claims Hughes is merely a spokesperson. Hughes left his Sacramento law firm last year to embrace his bodybuilding alter ego, "Dr. Tony Huge."
In December, the FDA executed a search warrant at an Enhanced Athlete facility in Sacramento and at Cavell's residence, according to court documents. At Cavell's home, officers found receipts from a Lake Tahoe trip to the Montbleu Resort Casino & Spa in Nevada, indicating he had traveled out of the court's jurisdiction. The officers also discovered a 2017 Corvette in Cavell's garage. Documents in the glove box indicated Cavell had purchased the $95,000 car, though he never reported the purchase to his probation officer.
"It appears Cavell concealed the purchase of the Corvette, in order to avoid detection and increased payments towards his $7,457,118.18 in restitution ordered in the underlying (Loomis Wealth Solutions) case," court documents state.
Officers also found 14 grams of marijuana and other drug paraphernalia at Cavell's residence, according to court documents. Later, Cavell tested positive for anabolic steroids and allegedly admitted to smoking marijuana approximately two times per week.
"Most recently, observations by federal law enforcement officers indicate Cavell has continued to engage in manufacturing and distributing unapproved drugs, dietary supplements, and controlled substances/steroids for human consumption," court documents state.
After the city of Sacramento closed the Enhanced Athlete facility following the December raids, Cavell "appears to be now running his business out of his residence," the documents also state.
In a statement filed with the court, probation officer Miranda L. Lutke recommended Cavell remain in custody pending the violation proceedings because he "poses a risk of flight" and "poses a danger to the community."
Attorneys for Cavell did not respond to a request for comment.
Source: https://www.bizjournals.com/sacrame...of-enhanced-athlete-arrested-for-alleged.html
By Scott Rodd – Staff Writer, Sacramento Business Journal | Feb 12, 2018, 6:39am
Scott Cavell, CEO of Sacramento-based nutritional supplements distributor Enhanced Athlete Inc., has been arrested for allegedly violating his parole from a previous fraud conviction and could face up to two years in prison.
According to documents filed in the U.S. District Court for the Eastern District of California, Cavell is accused of parole violations including possession of marijuana, use of controlled substances, failing to report an expenditure over $500 and traveling out of the judicial jurisdiction without permission.
The violations came to light as a result of searches executed by the U.S. Food and Drug Administration at an Enhanced Athlete facility and Cavell's residence, according to court documents.
In 2009, Cavell was involved in a multimillion-dollar mortgage scheme with Roseville-based Loomis Wealth Solutions. He was a fugitive until 2012, when Ireland authorities arrested him on marijuana possession charges and extradited him to the U.S. Cavell pleaded guilty to wire fraud and was released from prison in 2016.
The former president of Loomis Wealth Solutions, Lee Loomis, was sentenced to 12 years in prison last week.
Enhanced Athlete has been tied up in legal battles since July. In two civil lawsuits, the company is accused of selling controversial and potentially dangerous supplements, including selective androgen receptor modulators, or SARMs, and 2,4-Dinitrophenol, or DNP. Arizona-based supplements company Nutrition Distribution LLC filed the two lawsuits in federal court. One of the suits alleged that European authorities raided several facilities connected to Enhanced Athlete after the company set up shop in the United Kingdom.
Cavell has denied that the company sells DNP.
The lawsuits also name former Sacramento bankruptcy lawyer Anthony Hughes, claiming he is an employee of Enhanced Athlete. The company, however, claims Hughes is merely a spokesperson. Hughes left his Sacramento law firm last year to embrace his bodybuilding alter ego, "Dr. Tony Huge."
In December, the FDA executed a search warrant at an Enhanced Athlete facility in Sacramento and at Cavell's residence, according to court documents. At Cavell's home, officers found receipts from a Lake Tahoe trip to the Montbleu Resort Casino & Spa in Nevada, indicating he had traveled out of the court's jurisdiction. The officers also discovered a 2017 Corvette in Cavell's garage. Documents in the glove box indicated Cavell had purchased the $95,000 car, though he never reported the purchase to his probation officer.
"It appears Cavell concealed the purchase of the Corvette, in order to avoid detection and increased payments towards his $7,457,118.18 in restitution ordered in the underlying (Loomis Wealth Solutions) case," court documents state.
Officers also found 14 grams of marijuana and other drug paraphernalia at Cavell's residence, according to court documents. Later, Cavell tested positive for anabolic steroids and allegedly admitted to smoking marijuana approximately two times per week.
"Most recently, observations by federal law enforcement officers indicate Cavell has continued to engage in manufacturing and distributing unapproved drugs, dietary supplements, and controlled substances/steroids for human consumption," court documents state.
After the city of Sacramento closed the Enhanced Athlete facility following the December raids, Cavell "appears to be now running his business out of his residence," the documents also state.
In a statement filed with the court, probation officer Miranda L. Lutke recommended Cavell remain in custody pending the violation proceedings because he "poses a risk of flight" and "poses a danger to the community."
Attorneys for Cavell did not respond to a request for comment.
Source: https://www.bizjournals.com/sacrame...of-enhanced-athlete-arrested-for-alleged.html
