A federal jury in Atlanta has convicted Jared Wheat, CEO of Hi-Tech Pharmaceuticals, Inc., and the company itself on charges of wire fraud and money laundering. The verdict follows a six-week trial where prosecutors demonstrated that Wheat and Hi-Tech fabricated documents to mislead customers about the company’s compliance with industry manufacturing standards.
According to U.S. Attorney Theodore S. Hertzberg, “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.” Hertzberg added that the investigation required years of work among law enforcement partners.
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, said: “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 founded Hi-Tech Pharmaceuticals in Norcross, Georgia. The company claims annual revenues of $100 million. In 2007, new FDA rules established Good Manufacturing Practices (GMP) for dietary supplement companies; however, while many manufacturers seek third-party certification as proof of compliance for marketing purposes, the FDA does not certify GMP compliance itself.
In 2010, Hi-Tech hired an outside auditor which found significant deficiencies—75 categories were listed as non-compliant with GMP standards. These included facility gaps allowing rodent entry and products exposed to contaminants before packaging.
Instead of correcting these issues, prosecutors say Wheat and his company created a fake certificate from “PharmaTech Consulting,” which was owned by Wheat himself. The certificate falsely claimed GMP compliance and bore a forged signature from one of Wheat’s former attorneys in Belize.
Hi-Tech also altered legitimate audit reports so they appeared favorable and issued fake FDA export certificates by changing dates and product names. From 2011 through 2013, these documents were sent repeatedly to customers domestically and abroad; foreign regulators accepted them as proof that Hi-Tech’s products met GMP requirements.
The fraudulent activities resulted in more than $4.7 million paid by customers during this period.
On November 21, 2025, Jared 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 conspiracy involving mail/wire fraud related to unapproved drugs (2009). Hi-Tech was convicted on multiple counts including wire fraud conspiracy and money laundering; it could face fines up to twice its criminal proceeds—potentially nearly $10 million—and up to five years probation.
Sentencing before U.S. District Judge Amy Totenberg is pending.
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 along with Assistant United States Attorney Kelly K. Connors; substantial support came from the FDA Office of Chief Counsel.
