Jared Wheat, CEO of Hi-Tech Pharmaceuticals, Inc., and his company were found guilty by a federal jury in Atlanta of wire fraud and money laundering. The verdict follows a six-week trial where evidence showed that Wheat and Hi-Tech fabricated documents to mislead customers into believing the company was certified as compliant with industry manufacturing standards.
“After two prior federal felony convictions, Wheat yet again put profits over product quality and consumer safety by forging documents purporting to show that an independent, third-party audit company had certified Hi-Tech as complying with Good Manufacturing Practices. As a result of the defendants’ deceit, Hi-Tech received millions of dollars from customers who relied on the fabricated documents,” said U.S. Attorney Theodore S. Hertzberg. “The defendants’ fraudulent scheme was uncovered through years of dedicated investigation and collaboration among law enforcement partners, and the verdict signals that companies that lie will face stern consequences.”
Kelly McCoy, Acting Special Agent in Charge at the Food and Drug Administration Office of Criminal Investigation, stated: “Making fraudulent claims about FDA-regulated products shows a reckless disregard for public health and safety. We remain committed to pursuing and bringing to justice those who misrepresent key aspects of their products to unsuspecting customers.”
Demetrius Hardeman, Special Agent in Charge at IRS Criminal Investigation’s Atlanta Field Office, added: “Hi-Tech’s conviction for money laundering provides the expected outcome for any business engaging in this illegal activity. IRS-CI special agents are experts at following the money to uncover the various money laundering schemes carried out by business entities or criminals to hide illegal profits, including their use of layering, cyber laundering, and shell companies.”
Wheat is described as the founder and Chief Executive Officer of Hi-Tech Pharmaceuticals, which reports $100 million in annual revenue. In 2007, new FDA rules required dietary supplement companies to follow Good Manufacturing Practices (GMP) for sanitary production processes. While the FDA does not certify GMP compliance directly, many manufacturers seek certification from independent auditors.
In November 2010, Hi-Tech hired an outside audit firm that found serious problems with its compliance—75 categories failed GMP standards. Issues included facility gaps allowing rodent entry, exposure of products to contaminants before packaging, and inadequate testing procedures.
Instead of correcting these issues, Wheat and Hi-Tech created a fake certificate in March 2011 from PharmaTech Consulting—an entity owned by Wheat himself—falsely stating GMP compliance. They also altered legitimate audit reports to appear favorable by changing negative findings from “Not Acceptable” to “Acceptable” under PharmaTech’s name.
Hi-Tech further fabricated FDA export certificates known as Certificates of Free Sale by altering dates and product names. From 2011 through 2013, these fraudulent documents were sent repeatedly to customers; some were used by foreign regulators permitting sales abroad based on false certifications.
Customers paid more than $4.7 million during this period after receiving these documents.
On November 21, 2025, Wheat was convicted on wire fraud charges; he faces up to 20 years in prison plus supervised release. He has previous convictions for drug trafficking conspiracy (1991) and mail/wire fraud involving unapproved drugs (2009). Hi-Tech was also convicted on multiple counts including wire fraud conspiracy and money laundering; it faces fines up to twice its criminal proceeds—potentially nearly $10 million—and probation up to five years.
Sentencing before U.S. District Judge Amy Totenberg has not been scheduled.
The case was investigated by both FDA Office of Criminal Investigations and IRS Criminal Investigation units. Prosecution is being handled by First Assistant United States Attorney Nathan P. Kitchens and Assistant United States Attorney Kelly K. Connors with support from the FDA Office of Chief Counsel.
Further information can be obtained via http://www.justice.gov/usao-ndga or through contact with the U.S. Attorney’s Public Affairs Office.