United States v. John Andreadis A/K/A John Andre and Drug Research Corporation

366 F.2d 423, 1966 U.S. App. LEXIS 5053
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 1, 1966
Docket277, Docket 29912
StatusPublished
Cited by63 cases

This text of 366 F.2d 423 (United States v. John Andreadis A/K/A John Andre and Drug Research Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. John Andreadis A/K/A John Andre and Drug Research Corporation, 366 F.2d 423, 1966 U.S. App. LEXIS 5053 (2d Cir. 1966).

Opinion

WATERMAN, Circuit Judge.

Appellants, John Andreadis, a/k/a John Andre, and Drug Research Corporation, a company that Andre controlled, appeal from judgments of conviction entered after a jury trial before Judge Bartels in the United States District Court for the Eastern District of New York. Appellants were indicted, tried, and convicted on forty-two counts of knowingly using either the United States mails or radio and television communication in interstate commerce, in furtherance of an intentional scheme to defraud prospective purchasers of the product “Regimen Tablets” by false or fraudulent pretenses, representations and promises in violation of 18 U.S.C. §§ 1341 (mail fraud) 1 and 1343 (wire fraud); 2 on one count of conspiring to violate the federal statutes just cited in violation of 18 U.S.C. § 371; and on one count of causing to be introduced and delivered in interstate commerce, with intent to defraud and mislead, a quantity of cartons of a product labeled “Regimen Tablets,” together with a display kit, which contained statements that were false and misleading in violation of 21 U.S.C. §§ 331(a), 333(b) and 18 U.S.C. § 2. We find no error and affirm the judgments on all counts.

“Regimen Tablets,” manufactured for, and sold by, appellants, consisted of supplies of three pills, a green pill containing 22.5 mg. of benzocaine plus vitamins and minerals that was supposed to deaden the tongue and sense of taste; a pink pill containing 648 mg. of ammonium chloride and various vitamins that was supposed to act as a diuretic; and a yellow pill containing 75 mg. of phenyl-propanolamine (PPA) that was supposed to act as an appetite depressant. Boxes of “Regimen Tablets” were sold, without prescription, over-the-counter, in two sizes; a $3 box containing 78 tablets, a so-called 10 day supply; and a $5 box containing 156 tablets, a so-called 20 day supply.

*427 For a period of years between the mid-1950’s and 1962, when the Federal Drug Administration finally removed “Regimen Tablets” from the market, appellants devised and executed a scheme to merchandise this product as a miracle weight-reducing drug. At the start Drug Research Corporation, controlled by Andre, who was also its President, 3 used mail order advertising to sell “Regimen Tablets.” The advertising material mailed to the public claimed that “Regimen Tablets” was a new “wonder drug for fat people” that made possible “no diet reducing” and that without dieting, special eating, or giving up “the kinds of food you like to eat” the pills would cause “your body to lost weight the fastest acting way * * In 1957, Andre retained Kastor-Hilton, Chesley, Clifford & Atherton, Inc. (hereinafter Kastor-Hilton), an advertising agency, to develop advertising copy to be placed in various national media. 4 Kastor-Hilton remained Andre’s advertising agency for the “Regimen Tablets” account until 1961. During that time reliance on mail order advertising to sell the product was replaced by reliance on more sophisticated advertising techniques. KastorHilton arranged for advertisements to be placed in the newspapers of every major city in the country, in magazines, of national circulation, and on programs televised on all the major networks, which claimed that “Regimen Tablets” made possible “no-diet” reducing, or reducing “without dieting” and that the pills had been “clinically tested” or “proven clinically effective.” In certain instances these claims were qualified when a national magazine or television program refused to accept the “Regimen Tablets” copy as first submitted by Kastor-Hilton, but Andre agreed to such changes grudgingly and he ordered Kastor-Hilton to retain these extravagant claims in the copy submitted to other, less particular, media. Without much doubt, the most successful of the advertising schemes devised by KastorHilton for “Regimen Tablets,” and assuredly the most spectacular, involved the use of “endorsers,” that is, individuals who for a period of time would appear each week, “live,” on a television program, demonstrate their weekly weight loss, which usually was quite substantial, 5 and state inter alia that they were losing the weight while eating the foods they normally ate and “without dieting,” that, “thanks to Regimen Tablets [they] felt satisfied with a fraction of the calories [they] used to eat * * and that they “never felt better.”

Each of the counts charging a scheme to defraud by means of false or fraudulent pretenses, on which appellants were convicted, set forth a specific instance in which the United States mails or interstate radio or television communication had been utilized by appellants to disseminate their advertising claims that “Regimen Tablets,” taken as directed, would cause a person of normal health to lose weight “without dieting,” or that this product made possible “no-diet reducing” and that it had been “clinically tested” or “proven clinically effective.” The thrust of the Government’s case was that there was here an intent to defraud because these representations and statements were scientifically and factually false, and yet appellants continued to include these representations and statements in their advertisements for “Regimen Tablets.” 6 It is the Government’s *428 contention that proof of these facts sufficed to convict appellants under 18 U.S.C. §§ 1341 and 1343 on each of the counts on which they were convicted. This contention will bear some further analysis. 7 But, assuming for present purposes that the Government is correct and that proof of this set of facts warrants the conclusion that 18 U.S.C. §§ 1341 and 1343 were violated, the essential issue before us becomes that of determining whether the Government adduced evidence sufficient to support the jury’s determination that this set of facts existed in every instance in which it returned a verdict of guilty.

At the outset we note that, first, on appeal from a jury conviction we must view the evidence in the light most favorable to the Government, United States v. Press, 336 F.2d 1003, 1009 (2 Cir. 1964), cert. denied, 379 U.S. 965, 973, 85 S.Ct. 658, 13 L.Ed.2d 559 (1965), and second, when the verdict of the jury is attacked for an alleged lack of evidence to support it, the verdict will not be set aside if it is supported by substantial evidence, e. g., United States v.

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Bluebook (online)
366 F.2d 423, 1966 U.S. App. LEXIS 5053, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-john-andreadis-aka-john-andre-and-drug-research-ca2-1966.