Hi-Tech Pharmaceuticals CEO Convicted in Federal Fraud and Money Laundering Scheme

ATLANTA, GA – A federal jury has convicted Jared Wheat, the founder and CEO of Hi-Tech Pharmaceuticals, along with the Georgia-based company itself, for a scheme built on forged documents and falsified certifications that misled customers for years. After a six-week trial, Wheat was found guilty of wire fraud, while Hi-Tech was convicted of wire fraud, wire fraud conspiracy, money laundering conspiracy, and money laundering.

Prosecutors said Wheat fabricated documents to make it appear that Hi-Tech had been certified as compliant with Good Manufacturing Practices, industry standards intended to ensure dietary supplement safety. In reality, an independent audit in 2010 uncovered major safety and quality failures at the company’s facilities, including contamination risks, improper storage, and widespread lapses in testing and production controls.

Rather than correct those issues, investigators say Wheat created a sham audit company, used a former attorney’s name without consent, and forged signatures on certificates claiming Hi-Tech was fully compliant. The company also altered legitimate inspection reports to hide dozens of GMP violations. These falsified documents were sent to customers and foreign regulators more than 70 times, allowing Hi-Tech products to be sold overseas and generating more than $4.7 million in revenue tied to the fraud.

Hi-Tech also fabricated FDA export certificates by changing product names and dates, further expanding the deception.

U.S. Attorney Theodore S. Hertzberg said the case reflects a pattern of Wheat placing profit over consumer safety, noting his two prior federal felony convictions. Investigators from the FDA and IRS also highlighted the risks posed to the public and the elaborate financial steps the company took to disguise the scheme.

Wheat, 53, faces up to 20 years in federal prison. Hi-Tech could be fined nearly $10 million and placed on probation. A sentencing date has not yet been set.