This week, it was announced that the owner and operator of numerous beauty product websites had pleaded guilty to selling 2.3 million in non-FDA approved and misbranded drugs and medical supplies. 56-year-old Kelly Luanne Schailble, also known as Kelly Reed and Heather Lane, pleaded guilty to one count of wire fraud and one count of introduction of misbranded medical devices in interstate commerce.
Court documents show that from 2009 to at least 2014, the defendant owned and operated AAE, which was doing business as Basics Inc. and Basics Inc. Ltd. The companies’ websites sold various beauty products related to weight loss, hair loss, skin care, eyelashes and wrinkle reduction. The websites were operated from Illinois then from homes the defendant occupied in Henderson, Nevada.
According to her plea agreement, the defendant knowingly marketed, sold and distributed non-FDA approved prescription drugs containing Botox and non-FDA approved prescription drugs containing hyaluronic acid. The products were acquired from distributors in China.
The defendant is now scheduled to be sentenced on October 25, 2018. At that time, she will face a maximum sentence of up to 20 years in prison and $250,000 fine for the wire fraud charge. She will face a maximum penalty of three years in prison for the misbranded devices into interstate commerce charge. Further details can be found here.