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SALT LAKE CITY — The owner of a sports drink company has admitted in federal court to bilking investors of $7 million over a four-year period.
Randy Olshen, 52, of Newport Beach, California, pleaded guilty to money laundering and wire fraud last week in U.S District Court. Olshen had a home in Summit County when the crimes were committed.
Olshen founded Innovative Health Solutions in 2008 to make and sell sports hydration drinks designed to boost energy and stamina. From 2009 to 2013, he made false claims about the success of the company to more than 50 investors.
He created two sets of accounting records, one that accurately reflected company finances and one that he showed to investors and potential investors, according to the U.S. Attorney's Office for Utah.
Olshen told investors in 2009 that Innovative Health had $1.1 million in sales when the number actually totaled $98,275. He also lied about having accounts with national chains such as Costco, Rite Aid, CVS and Food Lion, authorities said.
Federal prosecutors recommended Olshen serve 54 months in prison and 36 months probation after his release. Sentencing is set for July 29.