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October 6th, 2005

"Metabolife Ephedra Diet Drug Maker Pleads Guilty To Tax Evasion"

Two of three owners of the controversial San Diego company Metabolife have agreed to provide assistance and information about the company’s illegal practices and the practices of the third owner, Michael Ellis. The company pleaded guilty on charges of tax evasion and face over $1 million in fines and other related fees.

Metabolife made the herbal diet supplement Metabolife 356 which contained the stimulant ephedra and which has been blamed for dozens of deaths. Ephedra was banned in 2003 from being used in diet supplements.

The drug was seen to dramatically raise the heart rates of people. When those people were obese or had heart related problems to begin with, the fatal results occurred.

The new charges against the company are for evading the IRS, failing to pay $339,000 in taxes, and failing to report income over $1 million. Michael Ellis is under investigation for a number of crimes, including lying to the FDA about the hazards of ephedra.

Mr. Ellis also already has a drug-related conviction for his participation in running a methamphetamine lab and is fighting federal charges of being a felon in possession of an illegal firearm.