Group Manufactured Fake 5-Hour Energy for Stores: DOJ

Eleven people, including six San Diego County residents, have been charged with illegally manufacturing and distributing a counterfeit 5-Hour Energy drink that was sold in stores across the U.S.

The defendants include 63-year-old Joseph Shayota of El Cajon; 44-year-old Adriana Shayota of El Cajon; 51-year-old Kevin Attiq of El Cajon; 57-year-old Fadi Attiq of El Cajon; 55-year-old Mario Ramirez of San Diego; and 30-year-old Camilo Ramirez of San Diego.

They are charged with conspiracy to traffic in counterfeit goods, conspiracy to commit criminal copyright infringement and conspiracy to introduce misbranded food into interstate commerce.

Federal prosecutors said the case started as a legitimate business venture – the Shayotas made an agreement with the manufacturers of 5-Hour Energy to distribute the product in Mexico and provide Spanish-language labeling.

The Shayotas with the help of others, however, instead allegedly sold it in the United States at a higher price than the intended Mexico product. They repackaged more than 350,000 bottles to sell, according to a news release from the U.S. Department of Justice.

Then, prosecutors said, the defendants moved to creating their own version of the 5-Hour Energy Drink.

“The defendants mixed unregulated ingredients in plastic vats while attempting to mimic the real 5-Hour Energy products,” the news release said.

The group is alleged to have manufactured the counterfeit product at an unsanitary facility using untrained workers.

Between May 2012 and December 2012, the group distributed more than four million bottles of counterfeit 5-Hour Energy into commercial channels throughout the country, the indictment alleges.

Those include local wholesale distributors Dan-Dee Company Inc. of Spring Valley, Tradeway International Inc. of San Diego and Trimexico Inc. of El Centro.

Prosecutors said the group also sold the fake product to stores throughout the country, including 7-Eleven, CVS, Circle K and Chevron. None of the stores are in San Diego County, though a number of them are in the Los Angeles and San Francisco areas.

“This alleged counterfeit operation was especially egregious as the investigation revealed this product was sold, distributed and placed on the shelves of numerous retailers throughout the United States,” FDA Special Agent Lisa Malinowski said in the news release.

The defendants, who appeared in U.S. District Court in San Jose, will appear in court next on July 9. They were ordered to be released on $100,000 bond.

NBC San Diego is attempting to contact the defendants or their attorneys. Attempts to reach Kevin Attiq Friday afternoon were unsuccessful. We made a phone call to Dan-Dee Company and a representative hung up.

Contact Us