Washington Township Man Pleads Guilty To Money Laundering And Drug-Related Charges

WASHINGTON TOWNSHIP, NJ - A township businessman pleaded guilty Tuesday to federal charges in connection with the sale of precursor chemicals used to make methamphetamine, authorities said.

David J. Romeo, 47, also pleaded guilty in a separate scheme to defraud purchasers of dietary supplements by sending cheaper substitute ingredients.

Romeo pleaded guilty in Newark federal court to: conspiracy to distribute three kilograms or more of meth precursor chemicals, money laundering, mail fraud, and the introduction of misbranded food into interstate commerce with the intention to defraud of mislead, the U.S. Department of Justice announced.

Also part of the plea agreement, Romeo agreed to forfeit more than $1.2 million in money derived from his crimes.

Romeo admitted that was principal of three New Jersey-based companies: Global Nutrients, Stella Labs, and Nutraceuticals, which all sold ingredients used to make dietary supplements sold to consumers. Starting in early 2003, Romeo directed his employees to use cheaper substitutes in place of dietary ingredients that customers had ordered, authorities said.

Romeo also admitted that a fraud scheme involving a weight-loss ingredient called “hoodia” cost a loss of more than $7 million. Stella Labs, and Nutraceuticals purportedly sold hoodia that was taken from a rare South African plant, but was really manufactured in China, authorities said.

The mail fraud charge has a maximum prison sentence and fine of 20 years and $250,000, respectively. The misbranding charge carries a maximum sentence of three years in prison.

Sentencing is scheduled for May 18.