This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
A federal grand jury in Utah has returned a 38-count indictment against a former Park City resident who took in $7 million from 50 investors by allegedly misrepresenting the success of his sports drink business.
Randy Elliott Olshen, 51, now a resident of Newport Beach, Calif., was charged with mail fraud, wire fraud and money laundering, which carry possible prison sentences of up to 20 years and fines of up to $500,000.
Olshen was a founder and president of Innovative Health Solutions, LLC that manufactured and sold sports drinks designed to boost energy and stamina.
Olshen told investors that the company had annual sales of $1.1 million in 2009, when it had only $98,275, according to the indictment. For 2012, he allegedly said the company had more than $28 million in sales, when it had only $579,239.
Olshen also said the company had large receivable accounts with chains like Costco, Rite Aid, CVS and Food Lion when it was not owed large amounts, the indictment alleges.
He also is accused of creating false paperwork and records that he showed to potential investors, while keeping an accurate set of books they did not see.
Olshen is to make a first court appearance on Oct. 22. He could not be reached for comment.
The case was investigated by the FBI, IRS Criminal Investigation and the Utah Division of Securities, according to a news release.