An investigative tip from the Washington Attorney General’s Office has led to an Australian man pleading guilty to 16 felony counts for selling bogus medical advice over the Internet.
The deceptive business practices of Aaron David Smith and Leanne Rita Vassallo came to light last summer when the Attorney General’s Office filed a civil lawsuit accusing the pair of violating Washington’s Consumer Protection Act. The defendants, both of Cecil Hills, a suburb of Sydney, New South Wales, became millionaires while selling e-books with worthless “cures” for health conditions ranging from acne to cancer. The defendants settled with our office in March and agreed to pay more than $14,000 in restitution to Washington consumers.
The Attorney General’s Office also brought the case to the attention of the Australian Federal Police and the Australian Competition and Consumer Commission, which filed its own civil lawsuit in the Federal Court of Australia alleging violations of the Trade Practices Act of 1974. In just a few weeks, the Australian agency obtained a federal court order to shut down the operation. The judge in that case described the defendants as “purveyors of quack medical advice and quack medicine.”
In addition, detectives from the New South Wales Police’s State Crime Command Fraud Squad conducted an investigation under the code name Strike Force Baronta. They concluded that Smith was primarily responsible for the business.
Smith was charged with 16 counts of Publishing False Information with intent to obtain money. Aussie officials told us he pleaded guilty to all charges on June 15 in the Downing Centre Local Court and is scheduled to be sentenced on July 29.
I’m told that an Australian TV station reported on the case. If I can track down the coverage, I’ll include a link on All Consuming.