IFBB Pro Bodybuilder and reigning two-time Mr. Olympia Jay Cutler settled his lawsuit with NDS Nutritional Products. Cutler filed the lawsuit in Los Angeles Superior Court in July 2007 “claiming misappropriation of image and likeness, invasion of privacy and unjust enrichment. ” Basically, NDS took a picture of Jay Cutler competing at a bodybuilding contest and placed it on their products without obtaining permission or paying Cutler for the commercial use of his image (”Bodybuilder Settles LA Lawsuit Against Nutrition Firm,” March 10).
Jay Cutler is sponsored by Muscletech, who pays Jay well for the use of his image in the promotion of Muscletech supplements.
Former IFBB Pro bodybuilder Milos Sarcev and Rick Robinette founded Koloseum Nutritional Science (KNS) in 2006. Redux Holdingspurchased 100% of remaining shares in KNS. The acquisition by Redux Holdings has been in the works for some time. The Los Angeles Business Journal explains the role of Redux Holdings and how its holding of Naturade resulted in the acquisition of Koloseum:
Thus was born Redux Holdings Inc., which uses its penny stock to acquire assets of underperforming and distressed companies on a non-cash basis. He then leverages debt financing from investment banks and other sources to pay off creditors and rebuild the company, often employing bits and pieces of other acquisitions.
“Usually what you see in the turnaround market is people with a lot of money who would hire someone else to do the turnaround; it’s a pure financial play for them,” said Michelin, most recently a partner at Santa Monica-based restructuring firm Kibel Green Inc.
“What I wanted to do is combine the capital with the operational expertise of people who know how to turn it around, so in the end we’d have the equity.”
Michelin’s current focus is re-establishing Anaheim-based Naturade Inc., a venerable Orange County nutritional supplement maker that fell on hard times, according to regulatory filings, following mismanagement by a new owner earlier in the decade.
In January 2007, Rick Robinette came aboard Naturade (a subsidiary of Redux Holdings) while it was recovering from Chapter 11 bankruptcy. When Naturade emerged from bankruptcy in November 2007, it quickly raised $1.2 million in funding, gave significant equity stakes to Rick Robinette (who was promoted to Chief Operation Officer (COO)) and Milos Sarcev (who was retained as Chief Science Officer). Redux Holdings also acquired a 30% stake in Koloseum Nutritional Sciences.
The recent purchase completes the acquisition of KNS by Redux Holdings. What does this mean? Trey Meehan, private equity manager and venture capitalist involved with Redux Holdings offered the following analysis:
Well, here is what I think it does for the Company. First, it provides a new product line to market alongside the Naturade brand to a large network that is already in place. Naturade is in stores all across the United States (as well as some international locations) like grocery stores, natural food stores, Sam’s Clubs, vitamin stores and many more. The Naturade brand typically targets the mass audience (moms and pops of the world).
The KNS line targets athletes.
Why does it matter? Well, is there a more efficient way to introduce leading edge, proprietary, nutritional formulas into your “everyday” product line than to take it from a sister product line that already produces supplements for world class athletes.
Congratulations to Milos Sarcev, who in recent years has successfully fought an indictment on steroid charges and deflected controversy from his association with the BALCO scandal.
Real journalists are supposed to rely on verifiable facts when writing news stories. Michael Brick of the New York Times appears to be guilty of sloppy fact-checking in his coverage of the federal steroid investigations down in Texas.
A black Hummer pulled into the Hooters parking lot as dusk fell. Arthur Dale Atwood, a professional bodybuilder with a 61-inch chest, opened the tailgate for a police informant to deliver more than 100 bottles of fake drugs made from vegetable oil.
The story implies that Art Atwood was selling and dealing “fake” steroids. Court documents which provide details of the sting operation indicate that federal investigators gave the police informant fake steroids in place of real steroids as part of the Atwood sting operation. “Fake” steroids are often used in sting operations to establish conspiracy and possession with intent to distribute.
Furthermore, the police informant involved in the federal steroid sting operation was Art Atwood’s best friend; Atwood had no reason to suspect he was being sold fake steroids. His best friend had been acquiring steroids from David Jacobs who was distributing legitimate steroids imported from China according to independent sources.
Prosecutors could have tried Atwood and Jacobs on multiple counts of drug conspiracy, seeking to make an example of two bodybuilders suspected of distributing steroids. But instead, they made deals that could keep both men from serving any prison time.
Art has informed MESO-Rx that he had not entered into a plea agreement with federal investigators and the New York Times assertion of such a deal was categorically false. Atwood has not been charged with a crime and it remains to be seen if charges are filed against him for his involvement.
Atwood and Jacobs were enlisted to cooperate in Operation Raw Deal, the federal government’s most aggressive drive yet to interrupt the importation and traffic of performance-enhancing drugs through nutrition stores, gyms and Web sites. In September, authorities in 10 countries coordinated the arrests of more than 120 people, seized more than $6 million and collected 11 million steroid doses, 3 boats and dozens of weapons.
While the Texas investigation is a complex and interconnected case, Atwood explains that his involvement in the case is different from Jacobs; Atwood does not have the same connections e.g. with NFL football players, nor does he have a plea agreement with prosecutors assuring him that he will avoid jail time. The facts involving Atwood’s case are significantly different and will be judged independently, contrary to suggestions by the New York Times of similarities between the Atwood and Jacobs cases. As he told the local CBS affiliate, “David did his own thing; I was my own entity.”
Through the summer, six other people connected to Atwood and Jacobs were arrested and charged with conspiracy to distribute steroids. Most have pleaded guilty to the federal distribution charge. In interviews, investigators and defense lawyers described the six as bodybuilders who were supplied by Atwood and Jacobs and who were familiar with one another partly through competitions and mostly through online sales.
The New York Times implies that six bodybuilders were arrested as the result of Art Atwood’s cooperation with federal investigators. Atwood strongly denies the truth of this allegation; the implication that they were “turning people in left and right” is untrue. Furthermore, none of the six indicted co-conspirators of David Jacobs have accused Atwood as being responsible for their arrests.
While the parties affected by the federal steroid investigation in Texas are restricted by what they can say to the press by legal considerations, the full truth and details of this large scale investigation will become a matter of public record soon - most likely upon sentencing of the parties involved. MESO-Rx tries to provide additional information as it becomes available but the details are incomplete and we should be cautious before we rush to judgment in the absence of all of the facts.
Hidetada Yamagishi’s defense attorney provided court documents to Flex Online including details of steroid-related charges against him. The court documents provide details of the anabolic steroid stack imported by IFBB Pro Bodybuilder Hidetada Yamagishi when he was arrested on his arrival in the United States to compete in the 2008 IFBB Iron Man Pro and 2008 IFBB Arnold Classic as well as other pro bodybuilding shows:
